contingent contract

contingent contract

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  Business Law An overview of Contingent Contracts Submitted by : Nayan Moni Kalita (BAM12005) Pritom Phukan (BAM12008) Anupam Konwar (BAM12013) Prabin Bhuyan (BAM12011) Bhaskar Bora (BAM12023)
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  Overview Meaning and Definition Characteristics Rulesand Regulation Examples and Illustrations
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  Meaning and Definition Contingent Contract is a contract in which a promise is conditional and the contract shall be perform only on the happening or not happening of some future uncertain event. Section 31 of the Contract Act defines a contingent contracts as “ A contract to do or not to do something, if some event, collateral to such contract does or does not happen.” Eg : A contracts to pay B Rs.10,000 if B’s house is burnt. This is a contingent contract.
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  Essential Characteristics  Thereshould be existence of a contingency; happening or non-happening of some event in future.  Contingency must be uncertain.  The event must be collateral, incidental to the contract.
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  Rules regarding ContingentContracts 1.Contingent contracts dependent on the happening of an uncertain future event cannot be enforced until the event has happen. If the event becomes impossible such contract becomes void (Sec. 32). 2.Contingent contract 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, and not before. (Sec.33). 3. If any contract is contingent upon how a person will act at an unspecified time, the event shall be considered to be impossible when such person does anything which renders it impossible that he should so act within any definite time, or otherwise than under future contingencies (Sec.34).
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  4. Contingent contractto do or not to do anything, if an specified uncertain event happens within an fixed time, become void if the event doesn’t happen or its happening becomes impossible before the expiry of that time. Contingent contract to do or not to do anything, if an specified uncertain event happens within an fixed time, may be enforced if the event doesn’t happen or its happening becomes impossible before the expiry of that time (Sec.35). 5. Contingent contract to do or not to do anything, if an impossible event happens, are void, whether or not the fact is known to the parties (Sec.36).
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  Thank You
• 8.
  A contract topay B a sum of money, if B marries C. C died without being married to B. The contract becomes void. Back
• 9.
  A agrees tosell his car to B if C dies. The contract cannot be enforced so long as C is alive. Back
• 10.
  A agrees topay B a sum of money if B marries C. C marries D. This marriage of B to C must now be considered impossible, although it is considered that D may die and that C may be afterward marry B. Back
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  A promises topay B a sum of money if a certain ship doesn’t return without a year. The contract may be enforced if the ship doesn’t return within the year, or is brunt within the year. Back
• 12.
  A agrees topay B Rs. 1000 if B will marry A’s daughter C. She was there at the time of the agreement. The agreement is void. Back