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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