Contingent Contracts Quiz

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.

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.

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.

<p>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.</p> Signup and view all the answers

<p>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.</p> Signup and view all the answers