2. DEFINITION
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.
3. Characteristics
1. Its performance depends upon the happening
or non-happening in future of some event.
2. The event must be uncertain.
3. The uncertain future event must be collateral
to the contract.
4. Rules
1. If a contingent contract is to be performed if
an uncertain future event happens, it cannot
be enforced until the event has happened.
2. Ii depends for its performance on doing of an
act by the promisor.
3. It contemplates doing of a thing if a specified
event happens within a fixed time.
4. It contemplates to do anything if an
impossible event happens.
5. Wagering vs. continent
• Consist of reciprocal • Not contain reciprocal
promises. promises.
• Is of contingent nature. • May not be of a
• Is void agreement. wagering nature.
• It is a game of chance. • Is valid agreement.
• The future event is sole • It is not in case of
determining factor. contingent contract.
• Future event is only
collateral.
