The rules regarding contingent contracts are summarized here under (Section 32 to 36).

The rules regarding contingent contracts are summarized here under (Section 32 to 36).

1. Contracts contingent upon the happening of a future uncertain event cannot be enforced by law unless and until that event has happened. And, if, the event becomes impossible, such contract becomes void (S.32).

For example:

A makes a contract with B to buy B’s horse if A survives C. This contract cannot be enforced by law unless and until C dies in A’s life-time.

In Chandulal Harjivandas Vs. CIT, Gujarat, AIR 1967, SC 816, in this case there was an agreement to pay taxed costs to the agent for appearing in the case in the Supreme Court on being successful-held that the obligation which was contingent on winning of case would ripen into an absolute obligation in the event of success of the case only.

2. Contracts contingent upon the non-happening of a certain future event can be enforced when the happening of that event becomes impossible, and not before. For example: A agrees to pay B a sum of money, if a certain ship does not return. The ship is sunk. The contract can be enforced when the ship sinks.(S.33)

3. If a contract is contingent upon as to how a person will act on an unspecified time, the event shall be considered to become impossible when such person does anything, which renders it impossible that he would so act within any definite time or otherwise than under further contingencies (Section 34). For example: A agrees to pay B a sum of money, if B marries C. But C marries D. The marriage to C must now be considered impossible, although it is possible that D may die and that C may afterwards marry B.

4. Contracts contingent upon the happening of an uncertain specified event within a fixed time become void, if at the expiration of the time fixed, such event has not happened or if, before the time fixed, such event becomes impossible (S..35). For example: A promises to pay B a sum of money if a certain ship returns within a year. The contract may be enforced if the ship returns within the year, and becomes void if the ship is burnt within the year.

5. Contracts contingent upon the non-happening of a specified event within a fixed time may be enforced by law when the time fixed has expired and such event has not happened or before the time expired, if it becomes certain that such event will not happen (S.36). For example: A promises to pay B a sum of money if a certain ship does not return within a year. The contract may be enforced if the ship does not return within the year or is burnt within the year.

6. Contingent agreement to do or not to do any things, if an impossible event happens, are void, whether the impossibility of the event is known or not to the parties to the agreement at the time when the contract was entered in to. For example: 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. The agreement is void.