contingent contract
Section 31 of the Indian Contract Act defines it. Contracts of insurance, indemnity and guarantee are common examples. The event must be collateral, meaning it is not itself the performance promised, and uncertain.
Sections 32 to 36 give the rules. A contract dependent on an uncertain event happening cannot be enforced until it happens, and is void if it becomes impossible (s.32). One dependent on an event not happening becomes enforceable when the event becomes impossible (s.33). If the event is a person's future conduct, it is impossible once he acts so as to make it so (s.34). Time-bound contingencies are governed by s.35. A contract dependent on an impossible event is void (s.36). A wagering agreement, though contingent in form, is void under s.30.
Example
A's promise to pay B ₹50,000 if B's ship returns safely is a contingent contract; if the ship sinks, the contract becomes void under section 32.
In Indian law
- Sections 31 to 36, Indian Contract Act, 1872
See also
contract · wagering agreement · indemnity · guarantee
Read more in the study notes
- Contingent contracts (Contract I)
- Modes of execution: arrest and detention, attachment, and sale (Civil Procedure Code and Limitation Act)
- Reference, review and revision; caveat, restitution and the inherent powers of the court (Civil Procedure Code and Limitation Act)
- Void agreements and legality of object (Contract I)
- Frustration and impossibility of performance (Contract I)
- Breach of contract: anticipatory and actual (Contract I)