Section 36 of Indian Contract Act

36. Agreement contingent on impossible events void.— Contingent agreements to do or not to do anything, if an impossible event happens, are void, whether the impossibility of the event is known or not to the parties to the agreement at the time when it is made.

Illustrations

(a) A agrees to pay B 1,000 rupees if two straight lines should enclose a space. The agreement is void.
(b) A agrees to pay B 1,000 rupees if B will marry A’s daughter C. C was dead at the time of the agreement. The agreement is void.

Final Thoughts

Introduction

Section 36 of the Indian Contract Act, 1872 deals with agreements that depend upon the happening of an event which is impossible. According to this section, any agreement that promises to do or not do something based on an impossible event is void from the beginning. This means such an agreement cannot be enforced by law.

Meaning of Contingent Agreement

A contingent agreement is a contract that depends on the occurrence or non-occurrence of a certain future event. For example, A may agree to pay B a sum of money if it rains tomorrow. Here, payment depends on a future event (rain).

However, Section 36 specifically applies to events that are impossible — that is, events that cannot happen at all.

Explanation of Impossible Events

An impossible event is something that cannot occur under any circumstances. It can be:

• Physically impossible: For example, two straight lines enclosing a space, which is geometrically impossible.
• Legally or factually impossible: For example, marrying a person who is already dead.

Legal Principle Under Section 36

The law states that: “Contingent agreements to do or not to do anything, if an impossible event happens, are void, whether the impossibility is known or unknown to the parties at the time of making the contract.”

This means that even if both parties are unaware that the event is impossible, the contract is still void.

Illustrations and Their Explanation

Illustration (a):

• Facts: A agrees to pay B ₹1,000 if two straight lines enclose a space.
• Explanation: It is impossible for two straight lines to enclose a space, as per the rules of geometry. So, the event is impossible, and hence the agreement is void.

Illustration (b):

• Facts: A agrees to pay B ₹1,000 if B marries A’s daughter C. However, C was already dead at the time of agreement.
• Explanation: Since C was dead, it is impossible for B to marry her. Therefore, this agreement is void.

Importance and Practical Implications

• Clarity in Contracts: Parties must ensure the conditions in their contracts are possible. If the condition is impossible, the contract has no legal effect.
• Avoidance of Futile Contracts: The law saves parties from entering into contracts that cannot be fulfilled.
• Protection for Both Parties: Even if the impossibility was unknown, neither party can enforce the agreement.

Conclusion

Section 36 protects parties from agreements based on impossible events. Any contract depending on such an event is void and cannot be legally enforced. This ensures fairness and practicality in contracts under Indian law.