Section 35 of Indian Contract Act

35. When contracts become void which are contingent on happening of specified event within fixed time.— Contingent contracts to do or not to do anything if a specified uncertain event happens within a fixed time become void if, at the expiration of the time fixed, such event has not happened, or if, before the time fixed, such event becomes impossible.

When contracts may be enforced, which are contingent on specified event not happening within fixed time.— Contingent contracts to do or not to do anything, if a specified uncertain event does not happen within a fixed time may be enforced by law when the time fixed has expired and such event has not happened or, before the time fixed has expired, if it becomes certain that such event will not happen.

Illustrations

(a) A promises to pay B a sum of money if a certain ship returns within a year. The contract may be enforced if the ship returns within the year, and becomes void if the ship is burnt within the year.

(b) A promises to pay B a sum of money if a certain ship does not return within a year. The contract may be enforced if the ship does not return within the year, or is burnt within the year.

Final Thoughts

Introduction

In the Indian Contract Act, contingent contracts are agreements that depend on the occurrence or non-occurrence of an uncertain event in the future. The performance of these contracts is conditional on something happening or not happening. Because of this uncertainty, specific rules are laid down to decide when such contracts become enforceable or void.

Meaning of Section 35

Section 35 deals with contingent contracts where the uncertain event must happen or not happen within a fixed time. This section clearly explains two important scenarios:

• When a contract depends on the event happening within a fixed time, and
• When a contract depends on the event not happening within a fixed time.

The section tells us when such contracts become void and when they can be legally enforced.

When Contingent Contracts Become Void

According to Section 35, if the contract depends on a certain uncertain event happening within a fixed time, the contract becomes void if:

• The fixed time expires and the event has not happened, or
• The event becomes impossible before the fixed time expires.

In simple words, if the condition on which the contract depends does not happen within the agreed time, or it is impossible for that condition to happen, the contract loses its validity.

When Contingent Contracts Can Be Enforced

On the other hand, if the contract depends on a certain uncertain event not happening within a fixed time, the contract can be enforced by law if:

• The fixed time expires and the event has not happened, or
• It becomes certain before the expiry of the fixed time that the event will not happen.

This means, if the condition is that something should not happen in the fixed time, and it indeed does not happen, the party can demand performance of the contract.

Illustrations to Explain Section 35

To understand this better, let’s look at the examples given in the Act:

(a): A promises to pay B some money if a certain ship returns within one year.

• If the ship returns within one year, the contract is enforceable.
• If the ship is burnt (destroyed) within the year, the ship cannot return, so the contract becomes void.

(b): A promises to pay B money if a certain ship does not return within one year.

• If the ship does not return within the year, the contract is enforceable.
• Even if the ship is burnt within the year (meaning it cannot return), the contract is still enforceable because the event (ship returning) did not happen.