Multiple choice

Principle: 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. Agreements contingent on impossible events are void.

Which of the following contracts is not a Contingent Contract?

  1. A contracts to pay B Rs. 10,000 if B’s house is burnt.

  2. A agrees to pay B a sum of money if a certain ship does not return. The ship sinks.

  3. A agrees to accompany B to USA next month if B pays for his travel and stay. A had been denied the visa thrice. However, he could apply again after 3 months.

  4. A agrees to marry B, whenever B gets a divorce. B is expected to get a divorce next year in January.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Option 1: Yes, this is a contingent contract. In case of such eventuality as to the burning of B’s house, A is obligated to pay Rs. 10,000 to B. Option 2: Yes, this is a contingent contract. Since the ship sinks, A would need to pay B a certain sum of money. Option 3: No, this is not a contingent contract, but a void agreement. Since A cannot apply for a visa before the end of three months, it is not possible for him to accompany B to the US. Option 4: Yes, this is a contingent contract. Though the event of divorce is uncertain in its happenstance and time of happening, the agreement shall come into force whenever the same divorce happens.

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