Hello friends today we will discuss the term Contingent Contracts defined in
Chapter III of the Indian Contract Act, 1872. In common words, it is a contract
which is dependent upon happening or not happening of a particular event.
Some important
provisions governing the same are explained below as under :-
Sec 31
of the Act defines a contingent contract as a contract to do or not to do
something, if some event, collateral to such contract, does or does not happen.
Eg A contracts with B
to pay Rs. 10,000 if B’s house is burnt. It is a contingent contract.
Sec 32 talks
about the enforcement of such contracts, which depends upon happening or not happening
of the uncertain future event. In case, such an event do not happen, it becomes
a contingent contract.
Eg A makes a contract
with B to buy B’s house if A survives C. Now this contract can only be enforced
if C dies during A’s lifetime.
A contracts with B to
pay a certain sum if he marries C. Now if C dies before marriage, contract
becomes void.
Sec 33
talks of the contingent contract in case certain event does not happen.
Eg A agrees to pay B if
a certain ship does not return. Now if the ship is sunk, contract becomes enforceable.
Sec 34 talks
of a contract where an uncertain future event is deemed to be impossible.
Eg A agrees to pay B a
sum of money if he marries C. C marries D, thus, marriage of B with C is deemed
to be impossible.
Sec 35 talks
about happening or non–happening of a particular event within a fixed time
limit.
Eg A agrees to pay B if
a particular ship is returned within a year. Here if the ship is returned after
expiry of one year it cannot be enforced.
Sec 36
talks of contingent contracts based on impossible events (whether known or not
known to parties at the time of contracting) to be considered as void.
Eg A agrees to pay B if
he marries C. C was dead at the time the agreement was made, hence
contract is void.
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