Contingent Contracts

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  • Topic: Contract, Void, Voidable
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Contingent Contract

Section 1 to 36 of Indian Contract Act 1872

Group-B3 Salil Shivhare (PGPM811_101) Mayank Agrawal (PGPM811_55) Sippy Taneja (PGPM811_72) Vishal M Aigal (PGPM811_87) Subhadeep Das (PGPM811_75)

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(Sec 31).

Illustration: A contract to pay B Rs. 10,000 if B’s house is burnt. This is a contingent contract. A promises to B Rs. 1 crore if a certain ship does not return within a year.

Contingent Contract

Three essential characteristics of Contingent Contract Its performance depends upon happening or non-happening of some event in the future The event must be uncertain The event must be collateral, i.e. incidental to the contract

Rules about contingent contract

Contingent Contract

Enforcements of contracts contingent on happening of a future uncertain event (Sec32): For example : A promises to pay B Rs. 10,000 if A's ship coming from London reaches at Mumbai-port on or before 31stMay,2012. Case 1: When the ship reaches at Mumbai-port on or before 31stMay,2012 Valid contract(Enforceable law) Case 2: When the ship reaches at Mumbai port after the specified period i.e. 31stMay,2012 Void/ Unenforceable Case 3: When the ship sinks Void/Unenforceable

Rules about contingent contract

Contingent Contract

Enforcements of contracts contingent on Non-happening of a future uncertain event (Sec33): For example : A promises to pay B Rs. 10,000 if A's ship coming from London doesn't reaches at Mumbai-port on or before 31stMay,2012. Case 1: When the ship reaches at Mumbai-port on or before 31stMay,2012 i.e., specified period Void Case 2: When the ship reaches at Mumbai port after the specified period i.e. 31stMay,2012 Valid Case 3: When the ship sinks Valid

Rules about contingent contract

Contingent Contract

Contracts contingent on future conduct of a living person...
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