Multiple choice

A contingent contract is a

  1. valid contract

  2. voidable contract

  3. contract void ab initio

  4. contract that becomes void when the event becomes impossible

  5. valid, but voidable contract
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Option (1) is correct: Under Section 31 of the Indian Contract Act, 1872, 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. It is a valid contract. Option (2) is incorrect: It is not a voidable contract. Option (3) is incorrect: It is not void ab initio. Option (4) is incorrect: It does not become void when the event becomes impossible.

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