Multiple choice

A contract to do or not to do something if some event, collateral to such contract does or does not happen is

  1. a contingent contract

  2. a wagering contract

  3. illegal

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

A contingent contract is one where performance depends on an uncertain future collateral event. The defining characteristic is that the contractual obligation is triggered by something that may or may not happen. This is valid and enforceable, distinguishing it from wagering contracts which are void under Indian law.

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