Contingent Contract- The Indian Contract Act 1872 Free Notes

What is contingent contract?

Meaning of Contingent Contract: 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

Contingent Contract Example:

• A contract to pay B Rs.10,000 if B house is burnt.
• A promise to pay B Rs.1,00,000 if a certain, ship does not return within a year.
  

To know the Definition and Nature of Contact under Indian Contract Act 1872 click here

Essential Features of a Contingent Contract

• It is a contract to do or not to do something

• Dependent on happening or non happening of an event

• Such on event is a collateral event (i.e. it is collateral) to the contract i.e. the event must not depend upon the mere will of party.
• The event is uncertain

Rules Regarding Contingent Contract Under The Indian Contract Act 1872 Notes

CONTINGENT UPON

1. Happening of Uncertain Future Event [Sec. 32, The Indian Contract Act 1872 ]                                                
2. Non – Happening of Uncertain Future Event[Sec. 33, The Indian Contract Act 1872]
3. Future conduct of a living person[Sec. 34, The Indian Contract Act 1872]
4. Happening of Specified Uncertain Event within Fixed time[Sec.35, The Indian Contract Act 1872]
5. Non – Happening of Specified Uncertain Event within Fixed Time[Sec. 35, The Indian Contract Act 1872] 
6. Impossible Events[Sec.36, The Indian Contract Act 1872]
   

1. Contracts contingent upon the happing of an event enforced – such event has happened [32, The Indian Contract Act 1872]
   Void – such event because impossible [happening of such event]
   Ex.:-    A contract to pay B a sum of money when B marries e dies without being married to B contract – void
   
2. Non happening of a future event:- [33, The Indian Contract Act 1872]
   Enforced :- when the happening of such events becomes impossible.
   Void:- such event has happened.
   Ex.:-    A agrees to pay B sum of money if a certain ship does not return. This ship is sunk. The contract can be enforced when the ship sinks
   
3. Happening of an event within a specified time [35, The Indian Contract Act 1872]
   Enforce :- when such event has happened within the specific time.
   Void :- When the happening of such event because impossible before the expiry of specified time.
   When such event has not happened within specified time. A promise to pay B sum of money if a certain ship return within a Year.
   Enforce :- ship returns within the year .
   Void :- If the ship is burnt within the year / not come within the year.
   
4. Non – happening of an event within a fixed time [Section 35, The Indian Contract Act 1872]
   Enforce :- When the happening of such event because impossible before the expiry of specified time.
   When such event has not happened within the specified .
   Void:- When such event has happened within the specified period.
   
5. Future conduct of a living person. [34, The Indian Contract Act 1872]
   Enforced:- When such person acts in the manner as desired in the contract.
   Void :- When such person does anything which makes the desired future conduct of such person – impossible – dependent upon certain contingency.
   Example: A agrees to pay B a sum of money if B marries C . C married D. The marriage of B to C must now considered impossible, although it is possible that D may die any that C may afterwards marry B.
   
6. Impossible events [36, The Indian Contract Act 1872]
   Such an agreement can not be enforced since it is void whether the impossibility of the event was known to the parties or not is immaterial.
   A agrees to pay B Rs.1,000 if two parallel straight lines should enclose a space. Agreements are void.
   A agrees to pay B Rs.1,000 if B will marry A’s daughter C and C was dead at the time of the agreement. Agreement is void.
   
   

Difference between Wagering & Contingent agreement.

To know more about wagering agreement Click here

Books Recommendations For Contract Act

• Law of CONTRACT & Specific Relief
• Contract Paper I