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An agreement to sell a horse already dead at the time of agreement (unknown to both parties) is:
AUnenforceable due to technical defect
BVoidable contract — subject to rescission
CValid contract — subject to refund
DVoid agreement — impossibility of performance
Answer & Solution
Correct answer: D. Void agreement — impossibility of performance
1. Per OCR example: "Sohan agrees with Mohan to sell his black horse. Unknown to both the parties, the horse was dead at the time of agreement."
2. Subject matter does not exist = impossibility.
3. Listed as void agreement under Sec 20.
_Source: ICMAI BoS CMA Foundation Paper 1 (FBLC) — Paper1_07042026.pdf, Module 2 §2.1 (page 51)_