Short notes on the Meaning of Contingent contract

A Contingent Contract implies a conditional contract contingent on the happening or non-happening of an event. A contract may be an absolutely contract or a contingent contract. An absolute contract is not dependent upon the happening or non-happening of an event. It has to be performed until and unless it becomes impossible.

“A contingent contract is a contract to do or not to do something if some collateral event to such contract, does or does not happen” (Sec. 31).

Examples:

(i) A contracts to pay B Rs. 10,000 if B’s house is burnt within a year.

(ii) A agrees to buy an old T.V. set subject to the approval of his electrician.