Multiple choice

Which one of the following is a contingent contract?

  1. “A” insures his factory against damage or destruction by fire.

  2. “A” sells his property subject to the condition that the property will be reconveyed to him on repayment of price with interest.

  3. A guard is appointed at a swimming pooi for the sole purpose of rescuing drowning persons.

  4. A borrower solemnly promises to pay off the tender when the borrower will be in funds.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

 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.“A” insures his factory against damage or destruction by fire. It is a contingent contract.

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