Contingent Contract

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• CONTINGENT CONTRACT
• GROUP MEMBERS
• JERIN TASNIM 2123031065
• MST ZAVIN DIBA 2123031083
• AZMERY ISLAM BANDHON 2123031077
• FARISA MAHINUR 2123031053

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• Contingent Contract (Section 31) 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 also
  called a conditional contract.
• In other words, the said event may or may not
  happen. Contracts of insurance, indemnity and
  guarantee, etc are contingent contract.
• Ex A contracts to pay B Rs.10,000 if Bs house
  is burnt. This is a contingent contract.

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• Essentials of a Contingent Contract
• 1. THERE MUST BE A CONTARCT TO DO OR NOT TO
  SOMETHING.
• Ex Rahim agrees to pay 5000 tk to Karim if a
  certain ship does not return. The ship sunk. The
  contract can be enforced when the ship sinks.
• 2. IT MUST DEPEND UPON THE HAPPENING OR NON
  HAPPENING IN FUTURE OF AN UNCERTAIN EVENT.
• Here, Karims payment depends on the event
  (sinking of the ship)
• 3. THE EVENT MUST BE COLLATERAL OR INCIDENTAL TO
  THE CONTRACT.
• Event (Sinking ship) is incidental to the
  contract.
• 4. THE HAPPENING OR NON-HAPPENING OF SUCH FUTURE
  EVENT MUST BE BEYONDTHE POWERS OF THE CONTRACTING
  PARTIES.
• Here, Both parties have no control over the
  sinking of the ship.

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• Enforcement of contracts contingent on an event
  happening
• Section 32 Contingent contracts to do or not to
  do anything if an uncertain future event happens
  cannot be enforced by law unless and until that
  event has happened. If the event becomes
  impossible, such contracts become void. 
•  (a) A makes a contract with B to buy B's horse
  if A survives C. This contract cannot be enforced
  by law unless and until C dies in A's lifetime. 
•  (b) A makes a contract with B to sell a horse to
  B at a specified price, if C, to whom the horse
  has been offered, refuses to buy him. The
  contract cannot be enforced by law unless and
  until C refuses to buy the horse. 
•  (c) A contracts to pay B a sum of money when B
  marries C. C dies without being married to B. The
  contract becomes void.

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• Section 33 Contingent contracts to do or not to
  do anything if an uncertain future event does not
  happen can be enforced when the happening of that
  event becomes impossible, and not before. 
• A agrees to pay B a sum of money if a certain
  ship does not return. The ship is sunk. The
  contract can be enforced when the ship sinks.

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• 34. If the future event on which a contract is
  contingent is the way in which a person will act
  at an unspecified time, the event shall be
  considered to become impossible when such person
  does anything which renders it impossible that he
  should so act within any definite time, or
  otherwise than under further contingencies.
• A agrees to pay B a sum of money if B marries C. 
• C marries D. The marriage of B to C must now be
  considered impossible, although it is possible
  that D may die and that C may afterwards marry B.

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• 35. Contingent contracts to do or not to do
  anything if a specified uncertain event happens
  within a fixed time become void if, at the
  expiration of the time fixed, such event has not
  happened, or if, before the time fixed, such
  event becomes impossible.
• Contingent contracts to do or not to do anything
  if a specified uncertain event does not happen
  within a fixed time may be enforced by law when
  the time fixed has expired and such event has not
  happened or, before the time fixed has expired,
  if it becomes certain that such event will not
  happen.
• (a) A promises to pay B a sum of money if a
  certain ship returns within a year. The contract
  may be enforced if the ship returns within the
  year, and becomes void if the ship is burnt
  within the year. 
• (b) A promises to pay B a sum of money if a
  certain ship does not return within a year. The
  contract may be enforced if the ship does not
  return within the year, or is burnt within the
  year.

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• 36. Contingent agreements to do or not to do
  anything, if an impossible event happens, are
  void, whether the impossibility of the event is
  known or not to the parties to the agreement at
  the time when it is made.
• (a) A agrees to pay B 1,000 Taka if two straight
  lines should enclose a space. The agreement is
  void. 
• (b) A agrees to pay B 1,000 Taka if B will marry
  A's daughter C. C was dead at the time of the
  agreement. The agreement is void.

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Basis of Comparison Contingent Contract Wagering Agreement
Nature It is a valid contract. It is a void agreement as per S. 30 of the Indian Contract Act, 1872.
Definition Contingent contract has been defined under S. 31 of the Indian Contract Act, 1872 as a contract to do or not to do something, if some event, collateral to such contract, does or does not happen. Sir William Anson has defined wager as a promise to give money or moneys worth upon the determination and ascertainment of an uncertain event
Application of Chance There is no game of chance involved. It depends completely on chance.
Presence of future uncertain event Future uncertain event is a collateral to this type of contract. Future uncertain event is the only determining factor of this type of agreement.


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Interest of Parties The interest of parties is concentrated towards happening or non-happening of an event. The parties are only interested in the winning of bet amount. No real interest is involved.
Reciprocal promise It might include or exclude reciprocal promises. It consists of reciprocal promises.
Example X promises to pay Y Rs. 1,00,000 if Ys car meets with an accident. A and B are watching a badminton match on Television. A Said that hell pay Rs. 10,000 to B if player X wins and B said hell pay 10,000 bucks to A if player Y loses. This is a wagering agreement between A and B.


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