What happens to a contract if a specific event does not occur?

When a contract contains a condition precedent, it is inherently linked to a specific event that must occur for the contract to be valid and enforceable. If this specific event does not happen, the contract is deemed to be void because the basis upon which the agreement was formed has failed. In other words, the parties intended for the contract to be conditional on that event, and without its occurrence, there is no enforceable obligation.

For example, if two parties agree to a contract that depends on the receipt of financing, and the financing is not obtained, the contract would become void as its essential purpose cannot be fulfilled. This principle clearly highlights the impact of contingent events on the validity of contractual obligations.

The other options would imply different scenarios that do not align with the fundamental nature of conditional contracts. If the contract were to remain enforceable under any condition, it would defeat the very purpose of having a condition. Renegotiation generally comes into play when parties seek to amend terms, not when a fundamental event fails. Lastly, extending the validity of a contract indefinitely does not address the initial failure of the event and would lead to uncertainty in contractual relationships.