Section 32 of ICA : Section 32: Enforcement Of Contracts Contingent On An Event Happening

Explanation using Example

Imagine that you have a contract with a builder to construct your house, but only if you receive a promotion at work by the end of the year, which will increase your budget. This is a contingent contract based on the occurrence of an uncertain future event - your promotion.

If the year ends and you have not been promoted, the contract cannot be enforced because the event on which the contract is contingent has not occurred. If you do get the promotion before the year ends, the contract can then be enforced.

However, if the company you work for suddenly shuts down, making your promotion impossible, the contract would become void according to Section 32 of the Indian Contract Act, 1872.