Multiple choice

A contract of indemnity is a

  1. contingent contract

  2. wagering contract

  3. quasi contract

  4. void agreement
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

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. For example, A contracts to sell B 10 bales of cotton for Rs. 20,000 if the ship by which they are coming returns safely. This is a contingent contract. Contract of insurance and contracts of indemnity and guarantee are popular instances of contingent contracts.

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