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Write a brief note on contingent contract. |
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Answer» A contingent contract is a contract to do or not to do something if some event, collateral to such contract, does or does not happen (Sec. 31). Where, For example : goods are sent on approval, the contract is a contingent one, depending on the acts of the buyer to accept or reject the goods. Example : Ram contracts to pay ₹ 10,000 if Ramesh’s house is burnt. This is a contingent contract. Therefore, contingent contracts depend on the happening of an uncertain future event and cannot be enforced till the event has happened. If the event becomes impossible, such contracts become void. |
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