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CONTINGENT CONTRACT
1. Introduction:
If any contract performance depends upon the
happening or not happening of certain event of future is called contingent contract.
An ordinary contract can become contingent contract.
If its performance is made dependent upon the happening or non happening of an
uncertain event, collateral to such contract. Contingent contract is also
called conditional contract.
2. Definition of contingent contract:
A “contingent contract” is a contract to do or not to do something if some
event, collateral to such contract, does not happer.
3. Essentials:
Following are the essentials of the conditional
contract.
i.
The performance of such contract depends upon the
happening or neon happening of some future uncertain event.
ii.
The event must be uncertain.
iii.
The happening or non happening of the event must
be collateral.
4. Rules of the performance of contingent contract:
Rules of the performance of contingent contract are following.
I.
Happening of uncertain event:
According to Section.
32
“Contingent contracts to do or not to do anything if
an uncertain future event happens cannot he enforced by law, unless and until
that event happened. If the event becomes impossible, such contract become
void.
II.
Unhappening of uncertain event:
According to
Section. 33
Contingent contracts to do or not to do anything if an uncertain future
event does not happen can be enforced when the happening of that event becomes
impossible but not before.
III.
Time not specified:
According to
Section. 34
“If the future event which the contract is contingent is the way which the
person will act at an unspecified time, the event shall be considered to become
impossible when such person does anything which renders it impossible. It will
be void contract.
IV.
Time specified:
According to Section
35 (1).
Contingent contract to do or not to do anything if a specified uncertain
event happens with in a specified time become void. If at the expiration of the
fixed time such event has not happens or before the time fixed.
V.
Fixed time expired:
According to Section
35(2).
“Contingent contracts to do or not to do anything if a specified uncertain
event does not happened within a fixed time may be enforced by law when time
has expired and such event has not happened or before the time fixed has
expired has expired it becomes certain that such event will not happen.”
VI.
Impossible event:
According to Section 36.
Contingent agreement to do or not to do anything
impossible event happens are void whether the impossibility of the event is
known or not to the parties to the agreement a time when it is made.