Contingent Contracts | The Indian Contract Act, 1872 | Detailed Discussion | English & Tamil

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Contingent Contract: Section 31 of the Contract Act defines a contingent contract as follows: “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 contract, the performance of which is dependent upon, the happening or non-happening of an uncertain event. The uncertain event must be Collateral Event.

Any ordinary contract gets converted into a contingent contract, if its performance is made dependent upon the happening or non-happening of an uncertain event, collateral to such contract.

Example: A contracts to sell B 50 bales of cotton for Rs.2,00,000, if the ship by which they are coming returns safely.

Contracts of insurance and contracts of indemnity and guarantee are popular instances of contingent contracts.