Multiple choice

A contingent contract is

  1. a contract to do something if some event collateral to such contract does or does not happen

  2. a contract not to do something if some event collateral to such contract does or does not happen

  3. a contract to do or not to do something if some event collateral to such contract does or does not happen

  4. a contract to do or not to do something if some event collateral to such contract does not happen
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Section 31 of the Indian Contract Act defines a contingent contract as a contract to do or not to do something if some event collateral to the contract does or does not happen. The key elements are: (1) performance is conditional, (2) the event is collateral to the contract, and (3) the contract binds parties based on the occurrence or non-occurrence of that event.

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