Contingent Contract

Definition

A contract to do or not to do something, if some event, collateral to such contract, does or does not happen (Section 31, ICA 1872). The performance depends on a future uncertain event.

Example

"A promises to pay B ₹1 Lakh if B's ship returns safely from a voyage. This is a Contingent Contract because performance is contingent on the uncertain event of the ship's safe return."

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