Contingent contracts

What is contingent contract?  Acc.to section31- ‘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.’  Collateral event-acc. To pollack & mulla, “a collateral event means an event which is neither a performance directly promised as part of the contract nor the whole of the consideration for a promise.”

Features of a contingent contract  The promise is based on an uncertain event.  The event must be collateral.  The event must not depend on the promisor’s will.

Rules for contingent contracts  Contracts enforceable on the happening of a future uncertain event.-sec.32.  Contracts enforceable on non-happening of a particular event.-sec.33.  Impossibility of a future conduct of a person.sec.34.  Contracts enforceable on happening of a future uncertain event within a specified period.sec.35.

Contd.  Contracts enforceable on non- happening of future uncertain event within a specified period. Sec35(2).  Agreements contingent on happening of an impossible event. Sec.36.

Difference b/w wagering &contingent contracts  Performance  Win or lose  Legality  Promise  Nature  Interest  Future event