Sections 31-33 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 31 defines a contingent contract. Section 32 says when a contract that depends on an event happening can be enforced. Section 33 says when a contract that depends on an event not happening can be enforced. These three sections open Chapter III of the Act.
A contingent contract is a contract to do or not to do something, if some event, collateral to such contract, does or does not happen (s.31). Where the contract depends on an uncertain future event happening, it cannot be enforced unless and until the event has happened, and becomes void if the event becomes impossible (s.32). Where it depends on an uncertain future event not happening, it can be enforced when the happening of that event becomes impossible, and not before (s.33).
Section 31: what a contingent contract is
"A 'contingent contract' is a contract to do or not to do something, if some event, collateral to such contract, does or does not happen."
| Element | Text |
|---|---|
| A contract | An agreement enforceable by law, as defined in section 2(h) |
| What it promises | "to do or not to do something" |
| The condition | "if some event ... does or does not happen" |
| Nature of the event | "collateral to such contract" |
The key word is collateral. The event is outside the contract itself: it is not part of the promise that either side makes.
The Act's illustration. A contracts to pay B Rs. 10,000 if B's house is burnt. This is a contingent contract.
Here the payment is promised only if an event, the burning of the house, happens, and the burning is collateral to the contract. If you are drafting an agreement whose obligations depend on an outside event (a licence, a funding round, a delivery date), our agreement drafting service can help you set it out clearly. The Act's later rules on timing are in our article on sections 34 to 36.
Section 32: event that must happen
The first paragraph reads: "Contingent contracts to do or not to do anything if an uncertain future event happens cannot be enforced by law unless and until that event has happened."
The second: "If the event becomes impossible, such contracts become void."
So there are two rules:
- Not enforceable until the event happens. The words are "unless and until".
- Void if the event becomes impossible. The contract "becomes void", which is the situation described in section 2(j): a contract that ceases to be enforceable becomes void. See our article on section 2(e) to (j).
The Act's illustrations to section 32
(a) A makes a contract with B to buy B's horse if A survives C. This contract cannot be enforced by law unless and until C dies in A's lifetime.
(b) A makes a contract with B to sell a horse to B at a specified price, if C, to whom the horse has been offered, refuses to buy him. The contract cannot be enforced by law unless and until C refuses to buy the horse.
(c) A contracts to pay B a sum of money when B marries C. C dies without being married to B. The contract becomes void.
Illustration (c) is the second paragraph in action: the event (marriage of B to C) became impossible when C died unmarried to B, so the contract became void.
Section 33: event that must not happen
"Contingent contracts to do or not to do anything if an uncertain future event does not happen can be enforced when the happening of that event becomes impossible, and not before."
This is the mirror of section 32. If the contract depends on an event not happening, it is enforceable only once it has become impossible for the event to happen.
The Act's illustration. A agrees to pay B a sum of money if a certain ship does not return. The ship is sunk. The contract can be enforced when the ship sinks.
The ship sinking makes its return impossible, so the condition "ship does not return" is satisfied and the contract becomes enforceable at that moment.
Sections 32 and 33 side by side
| Section 32 | Section 33 | |
|---|---|---|
| Depends on | An uncertain future event happening | An uncertain future event not happening |
| Enforceable | Unless and until the event has happened | When the happening of the event becomes impossible, and not before |
| If the event becomes impossible | The contract becomes void | The contract becomes enforceable |
So impossibility cuts opposite ways: in a "if it happens" contract it kills the contract; in an "if it does not happen" contract it triggers enforcement.
A modern example (ours, not the Act's)
Farida agrees to pay Gopal Rs. 2 lakh if his software start-up wins a particular government tender. Whether the tender is won is a collateral event, so this is a contingent contract under section 31. Under section 32, Farida's promise cannot be enforced unless and until the start-up wins the tender. If the tender is cancelled and cannot now be won, the event has become impossible, and the contract becomes void.
Now reverse it. Farida agrees to pay Gopal Rs. 2 lakh if the tender is not awarded to a rival by the end of the process. That is a contract depending on an event not happening. Under section 33 it can be enforced when it becomes impossible for the rival to be awarded the tender, and not before.
What can the parties change?
The three sections say when contingent contracts can be enforced; the text does not say the parties may vary those rules, and we do not claim they can. What parties do control is the choice of the event, how it is described, and whether the contract is contingent at all. The better the event is defined, the less room for argument about whether it has happened or become impossible. Section 34 says when a future event that is a person's conduct is to be treated as impossible; section 35 deals with fixed times; we cover both in our article on those sections.
Practical points
- Define the event clearly. Say what counts as the event happening and who decides.
- Keep the event collateral. If the event is part of what one party promises to do, it may not be a collateral event in the sense of section 31.
- Note what happens if the event fails. Under section 32 a contract dependent on an event happening becomes void if the event becomes impossible.
- Watch the "not happen" case. Under section 33 enforcement waits until the event's happening becomes impossible.
Need help drafting conditions that depend on an outside event?
If your contract depends on approvals, funding, delivery or any other outside event and you want the conditions to be clear, our agreement drafting team can word the event, the timing and the consequences so that both sides know where they stand.
Key takeaways
- A contingent contract is a contract to do or not to do something if an event collateral to it does or does not happen (s.31).
- A contract depending on an uncertain future event happening cannot be enforced unless and until it happens, and becomes void if it becomes impossible (s.32).
- A contract depending on an event not happening can be enforced when the event's happening becomes impossible, and not before (s.33).
- The Act's illustrations use a house burning, horses, a marriage and a ship.
Read next
- Sections 34 to 36: future conduct, fixed time and impossible events
- Sections 29 and 30: uncertainty and wagering agreements
- Void and voidable contracts: sections 24 to 30
Disclaimer: Based on the text of the Indian Contract Act, 1872 as consulted on 1 October 2026. Many questions under this Act turn on case law and on the wording of the particular contract, which this article does not cover. It is general information, not legal advice; check the official text and take advice before acting.