Multiple choice

A contract of life insurance, the performance of which depends upon a future event, falls under the category of

  1. contract of indemnity

  2. contract of guarantee

  3. contingent contract

  4. special type of contract

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A contingent contract is a contract to do or not to do something if some event collateral to such contract does not happen. A contingent contract depends upon the happening or non-happening of a certain event. If such event takes place, then a contingent contract becomes valid and if that uncertain event does not take place, then a contingent contract becomes void. A contract of life insurance, the performance of which depends upon a future event, falls under the category of a contingent contract.

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