Multiple choice

A contracts to pay B Rs.1,00,000 if the latter's house is burnt to ashes. This is an example of

  1. contingent contract

  2. quasi-contract

  3. guarantee

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

This is a contingent contract because the obligation to pay depends on an uncertain future event (the house burning to ashes). Contingent contracts are valid enforceable agreements where performance depends on a collateral event that may or may not happen. This distinguishes them from wagering contracts which are void as they involve pure chance without any legitimate interest.

Keep practicing — related questions