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.
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.
Legal Commentary & Landmark Judgments: Section 35
Section 35 of the Indian Contract Act, 1872 establishes a dual statutory mechanism for time-bound contingent contracts: agreements contingent on an event happening within a fixed time become void if the event does not happen or becomes impossible within that time; while contracts contingent on an event not happening within a fixed time become enforceable upon expiry without occurrence or upon prior certainty of non-occurrence.
In M&A and commercial conveyancing agreements featuring Condition Precedent (CP) long-stop dates, rely on Section 35 to resist claims for specific performance if regulatory approvals or clearances were not obtained before the long-stop date. Plead that the contract lapsed automatically by statutory mandate, extinguishing the court's jurisdiction to grant specific performance.