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A contract becomes void under ICA 1872 when:
AIt is not yet performed
BIt ceases to be enforceable by law (e.g. supervening illegality after formation)
CBoth parties have completed their obligations
DIt involves consideration in rupees
Answer & Solution
Correct answer: B. It ceases to be enforceable by law (e.g. supervening illegality after formation)
1. Per OCR Sec 2(j): "A contract which ceases to be enforceable by law becomes void when it ceases to be enforceable."
2. Example: war breaks out between two trading nations after contract formation.
3. Different from void-ab-initio (void agreement).
_Source: ICMAI BoS CMA Foundation Paper 1 (FBLC) — Paper1_07042026.pdf, Module 2 §2.1 (page 50)_
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