Section 34 of Indian Contract Act

34.When event on which contract is contingent to be deemed impossible, if it is the future conduct of a living person.— If the future event on which a contract is contingent is the way in which a person will act at an unspecified time, the event shall be considered to become impossible when such person does anything which renders it impossible that he should so act within any definite time, or otherwise than under further contingencies.

Illustration

A agrees to pay B a sum of money if B marries C. C marries D. The marriage of B to C must now be considered impossible, although it is possible that D may die and that C may afterwards marry B.

Final Thoughts

Introduction

Section 34 of the Indian Contract Act deals with situations where a contract depends on a future event related to the actions of a living person. It clarifies when such a contract can be considered impossible to perform and thus discharged.

Explanation of Section 34

This section states that if a contract is made based on the future conduct or behaviour of a living person, the event will be treated as impossible if that person does something which makes it impossible for that event to happen within a reasonable time or except under some other conditions.

Simply put, if a contract’s performance depends on how someone acts in the future, and that person’s action now makes the contract impossible, the contract cannot be enforced.

Meaning of Contingent Contract

A contingent contract is a contract where the performance depends on the happening or non-happening of a certain event, which is uncertain. In Section 34, the uncertain event is specifically about what a living person will do in the future.

Example: A promises to pay B if it rains tomorrow.

Future Conduct of a Living Person as Contingent Event

Sometimes, a contract is based on the future decision or action of someone who is alive at the time of contract.

For example, A agrees to pay B if B marries C in the future. This contract depends entirely on whether B chooses to marry C or not.

When Such Event is Deemed Impossible

According to Section 34, the event is considered impossible if:

• The person has done something that makes it impossible to act as expected within a definite time.
• Or the event can only happen under further uncertainties or conditions.

This means if the person takes an action that clearly stops the expected event from happening, the contract is impossible to perform.

llustration Explained

Given Example:

• A agrees to pay B if B marries C.
• But C marries D.

In this case, since C is now married to D, the marriage between B and C cannot take place now. This means the event on which the contract depends (B marrying C) is impossible.

Even though it is possible in the distant future that D may die and then C might marry B, the contract does not wait indefinitely or under further contingencies. Hence, the contract is deemed impossible to perform at present.

Practical Implications

• If the event on which the contract depends becomes impossible because of someone’s action, the contract cannot be enforced.
• This protects parties from endless waiting or uncertainty.
• Parties are not bound to perform contracts when the core condition becomes impossible.

Conclusion

Section 34 of the Indian Contract Act provides clarity on contracts contingent upon the future conduct of living persons. It protects the parties by treating the contract as impossible if the necessary event cannot occur due to actions of the person involved. The illustration helps understand this principle clearly and its application in real situations.