What are the essentials of Contingent Contract

Meaning and Definition of Contingent Contract : 


      Contingent contract also called as conditional Contract. The word Contingent means "Something related to a possible future and uncertain event". The happening of event is uncertain.
     Section 31 of Indian Contract Act, 1872 defines Contingent Contract as, "A contingent contract  is a contract to do or not to do something , if some even, collateral to such contract does or does not happen."

Example : 

A contracts to pay B RS. 10000 if B's house is burnt. This contingent contract.

Essentials of Contingent contract : 

Following are the Essentials of a Contingent Contract.

1) There must be a contract between the Parties

2) The contract must be to do or not to do something.

3) The performance of Contract depends upon the happening or not happening of some future event.

4) Happening of Event must be uncertain at the time of the agreement.

5) Ordinarily, the happening or non-happening of an event must not be under the control of the parties.


See also

1) Difference between Wagering Contract and Contingent Contract

2) Rights and liabilities of lessor and lessee

3) Continuing Guarantee and Revocation of Continuing Guarantee

4) Types of Agreement (The Indian Contract Act, 1872)

5) Difference between vested interest and contingent interest