CONTINGENT CONTRACT

• A contingent contract implies a contract,

the performance of which depends on the
happening or non-happening of an
uncertain event, incidental to such
contract.
• To do or not to do something, if some
event, collateral to such contract, does
or does not happen.
• Contingent event is of uncertain nature.
 CONTINGENT CONTRACT VS WAGERING AGREEMENT

• A contingent contract is a valid contract, whereas a wagering agreement is void.

• A contingent contract may not consist of reciprocal promises, whereas an
agreement by way of wager is composed of reciprocal promises.
• In a contingent contract, the future uncertain event is merely collateral,
whereas in a wagering agreement, the future uncertain event is the sole
determining factor.
• The parties to a contingent contract have real interest in the occurrence or non-
occurrence of the contingency, whereas it is not so in a wagering agreement. In
a wager, the parties have no other interest in the occurrence or non-
occurrence of event except winning the bet amount.
BAILMENT
• Bailment is the delivery of goods by one person to another for
some purpose, upon a contract that they shall, when the
purpose is accomplished, be returned or otherwise disposed of
according to the directions of the person delivering them.
PLEDGE
• Bailment of a movable thing as security for the repayment of a
debt or performance of a promise.
• The bailor in this case is called the Pawnor or Pledgor, whereas the
bailee is called the Pawnee or Pledgee.
The contracts of pledge and bailment are similar in two of the
following respects
1. In both the cases, there is a delivery of movable goods or property;
2. The goods are delivered back to the bailor or pawnor after
accomplishment of purpose or expiry of stipulated time.
The two, however, differ in a number of ways such as the following.
• Purpose Pledge has a specific purpose, i.e., repayment of a debt or
performance of a promise, whereas bailment has a general purpose.
• Use of goods The pawnee has no right to make any use of the
goods pledged. On the other hand, in bailment the bailee uses the
goods if the terms of bailment so provide.
 INDEMNITY

• When a person undertakes to make good the loss or to compensate the

party which has suffered some loss, a contract of indemnity results in
between the two.
• Type of contingent contract.
• The person who promises to save the other from a loss is called the
indemnifier and the person to whom this promise is made, or is going to be
protected from the loss, is known as indemnified or indemnity holder.
• A promise of indemnity against loss arising from any cause whatsoever, for
example, fire, accident, or natural calamity.
• The liability of an indemnifier commences as soon as the liability of the
indemnity holder to pay becomes clear and certain, although he has
himself not paid anything.
• The indemnity holder is entitled to all damages plus all costs of the suit and
promised money provided he/she has acted intra-vires (within powers).
 GUARANTEE

• A formal promise or assurance made by one person to another

person to be responsible, if a third person fails to perform a certain
duty with an objective to enable a person to get a loan, or goods on
credit, and even an employment.

• The person who gives the guarantee is called the surety, the person
in respect of whose default the guarantee is given is called the
principal debtor, and the person to whom the guarantee is given is
called the creditor.
 AGENCY

• An agent is a person
employed to do any
act for another
person, or to
represent another in
his dealings with
third persons. The
person for whom
such an act is done
or who is so
represented is called
the principal.
• Read from text-Rights
& Duties of Principal
& Agent