Chapter III - Of Contingent Contracts
Section 35
Section 35: Contingencies within a fixed time
Section 35 gives different results for fixed-time contingencies based on an event happening and those based on it not happening. Both routes also address a conclusive development before the deadline expires.
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Need advice on Section 35?
This article is for general information. Refer to the Indian Contract Act, 1872 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
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.
Rule and business relevance
A contract dependent on the event happening becomes void if the period expires without it, or earlier if the event becomes impossible. A contract dependent on non-happening may be enforced when the period expires without the event, or earlier if it becomes certain the event will not happen.
Limits and related provisions
Do not reverse the positive and negative conditions or treat a mere prediction as certainty. The contractual event, time limit and relevant evidence must be established. Other validity and performance requirements are not removed simply because a contingency resolves.
Hypothetical business example
Hypothetical: one promise is payable if a shipment arrives within a year and another if it does not. Destruction making arrival impossible within that period affects the two promises differently under the corresponding limbs, rather than producing the same result for both.
Practical decision flow
Classify the trigger as happening or non-happening and record the fixed period.
Check whether the period expired or whether impossibility/certainty was established earlier.
Apply the matching consequence and retain evidence before demanding or refusing performance.
Check the applicable legal framework
This guide explains the central provision. Applicable State amendments, the agreement, transaction date and other governing laws can affect its application. Check the current legal framework before relying on it for a commercial decision.
Practical checklist
Do
- Classify the trigger as happening or non-happening and record the fixed period.
- Check whether the period expired or whether impossibility/certainty was established earlier.
- Apply the matching consequence and retain evidence before demanding or refusing performance.
Avoid
- Do not reverse the positive and negative conditions or treat a mere prediction as certainty. The contractual event, time limit and relevant evidence must be established. Other validity and performance requirements are not removed simply because a contingency resolves.
Glossary
- Positive contingency
- A condition requiring the event to happen within the fixed period.
- Negative contingency
- A condition requiring the event not to happen within that period.
Frequently asked questions
Must parties always wait until the deadline?
No. The section also addresses earlier impossibility of happening or certainty of non-happening, as applicable.
Is a forecast that the event is unlikely enough?
The statutory early consequence requires impossibility or certainty under the relevant limb, not mere likelihood.
Do happening and non-happening conditions produce the same outcome?
No. One can become void while the other becomes enforceable when the respective conditions are met.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026