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4 - Contingent Contract

A contingent contract is an agreement to do or not do something if a future, uncertain collateral event does or does not occur. For a contract to be contingent, there must be an act to be performed that depends on the happening or non-happening of an uncertain future event outside of the parties' control. Key differences between contingent contracts and wagering agreements are that wagering agreements involve reciprocal promises, are contingent in nature as a game of chance, and are void, whereas contingent contracts are valid as long as they are not wagering in nature and there is intention to perform.

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3K views

4 - Contingent Contract

A contingent contract is an agreement to do or not do something if a future, uncertain collateral event does or does not occur. For a contract to be contingent, there must be an act to be performed that depends on the happening or non-happening of an uncertain future event outside of the parties' control. Key differences between contingent contracts and wagering agreements are that wagering agreements involve reciprocal promises, are contingent in nature as a game of chance, and are void, whereas contingent contracts are valid as long as they are not wagering in nature and there is intention to perform.

Uploaded by

Sahil
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Contingent Contract

➢ Absolute Contract
➢ Contingent Contract

➢ Definition (Section 31)


“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”

➢ Essentials
1. To do or not to do something
2. Happening or non-happening of future event
3. Uncertain event
4. Collateral or incidental

➢ Contingency Dependant on Act of Party


“Event” to include “Act”

➢ Rules
1. Future uncertain event – Impossible
2. Non-happening of event
3. On a party doing something
4. Specified time
5. Impossible event

➢ Difference between ‘Contingent Contract’ and ‘Wagering


Agreement’
Wagering Agreement Contingent Contract
Reciprocal and Mutual Not necessarily
Promises
Contingent in nature Not wagering in nature
Void Valid
Game of chance/ interest Not a game of chance
No intention to perform Intention to perform

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