Contingent contract
Q. What is contingent contract? Is it enforceable by law? If so under what circumstances. Discuss fully.
(2001)
1. Introduction:
If any contract performance depends upon the happening of certain event of future is called contingent
contract. An ordinary contract can become contingent contract. If its performance is made dependent
upon the happening or non happening of an uncertain event, collateral to such contract. Contingent
contract is also called conditional contract.
Example:
A contracts to pay B Rs. 2000 if B marries to C. This is contingent contract.
Collateral event:
The collateral event means connected event.
2. Definition of contingent contract:
A “contingent contract” is a contract to do or not to do something if some event, collateral to such
contract, does not happen.
3. Essentials:
Following are the essentials of the conditional contract.
(i) The performance of such contract depends upon the happening or non happening of some
future uncertain event.
(ii) The event must be uncertain,
(iii) The happening or non happening of the events must be collateral.
4. Rules of the performance of contingent contract:
Rules of the performance of contingent contract are following.
(I) Happening of uncertain event:
According to Sec. 32
“Contingent contracts to do or not to do anything if an uncertain future event happens cannot be
enforced by law, unless and until that event happened. If the event becomes impossible, such
contract becomes void.
Example:
