5 Questions
Explain the concept of a contingent contract and provide an example from the text.
A contingent contract is a contract to do or not to do something based on the occurrence of a specific event. An example from the text is where A contracts to pay B Rs.10,000/- if B’s house is burnt.
What are the essentials of a contingent contract according to the text?
The essentials of a contingent contract are: 1) Contract to do or not to do something, 2) Depends upon contingency, 3) The event must be collateral, 4) The event may be within the control of one or both parties or out of control of both, and 5) The event should not be mere will of the promisor.
What are the rules regarding the enforcement of contracts contingent on an event happening?
The rules include the enforcement of contracts contingent on an event happening, enforcement of contracts contingent on an event not happening, deeming the event impossible if it is the future conduct of a living person, and when contracts become void if contingent on the happening of a specified event within a fixed time.
What is the significance of the event being collateral in a contingent contract?
The event being collateral means that it is related to the contract but is not the main purpose of the contract itself. It is a condition upon which the contract will be performed.
Under what circumstances may contracts contingent on the happening of a specified event within a fixed time be enforced?
Contracts contingent on the happening of a specified event within a fixed time may be enforced if the event does happen within the fixed time.
Test your knowledge of contingent contracts with this quiz. Learn about the essentials and examples of contingent contracts as defined by Section 31.
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