A agrees to pay B a certain amount if a specific ship returns within one year. The contract is enforceable if the ship returns within that year, but what is the status of the contract if the ship is destroyed by fire during the year?

Choose the correct answer

Explanation

The contract becomes void if the ship is burnt within the stipulated time because the essential condition cannot be fulfilled. Therefore, the agreement ceases to have legal effect and cannot be enforced.

A agrees to pay B a certain amount if a specific shi… — Accounting Mcqs | PakQuizHub