Contingent Contracts (Ss. 31 - 36 )

A contract to do or not to do something if some event (collateral to contract) does or does not occur

Conditions of contract

Condition Concurrent

Condition Subsequent

Condition Precedent #

Conditions as per S.31

Contingency Dependent on Act of Party

Event collateral to contract

Differ form those cases where performance ensures contract

E.g.: Pay to complete a work

E.g.: Reward to find lost dog

❌Does not Include❌

Contract provides delivery of goods as & when they arrive.

E.g. - Delivery when wheat comes from farmer

because:- merely provides particular mode of performance

event directly promised as a part of contract

whole of consideration for promise

Common E.g. - Contract for Insurance (Fire) & Indemnity

Wager is a Contingent agreement but S. 30 prevent it from becoming a contract.

❌Does not Include ❌

When promise (as act) is dependent on mere will and pleasure of promisor

Includes

Promise dependent a on voluntary act other, than mere declaration of promisor's will to be bound.

Act of a third person

E.g. - For a service A will pay whatever he thinks reasonable

Promise to pay what B shall determine

Act of promisor itself; except - act of mere arbitrary choice to be bound by it or not

E.g. - The case of sale of goods where buyer has approved goods or kept it beyond time.

In Contract: Party's disability to perform promise cause for annulling contract - NO Remedy in Damages - Valid

Unless - disability caused by promisor's conduct

Contingent Contracts:-

Builder's right to recover (for work) dependent on approval by architect.

Payment of Insurance claim conditional to proof of claim (satisfactory to directors of CO.)

Sale of boat subject to satisfactory survey

Sale of land subject to grant of permission to use land as transport depot

Sale of good subject to export lisence

S. 32

Compare with S.56

Applied when - Contract dissolved on own

Performance of material part of contract has become impossible

Contract made on contingency of an impossible event

Applied when - impact of violent outside force ; E.g

Government Restriction

Commercial Responsibility

S.33

Contract contingent on the not occurrence of a future uncertain event

enforceable - performance is impossible & not before

S.34

Contract contingent on a certain future act of a Living Person at an uncertain time

Act shall be impossible - person does something rendering it impossible

E.g. - A agrees to pay B a sum, if B marries C. C marries D - Marriage b/w B & C - considered impossible

If D dies or divorces C, the contract will be enfirceable

S.35

Contract contingent on an uncertain future event = void

Event not happened

Event becomes impossible

Contract contingent on non-happening of an uncertain future event = enforceable

Event not occurred within fixed time

The event becomes certainly impossible before time expires

Ship doesn't return within a year

Ship burns within a year

Ship doesn't return within a year

Ship burnt within a year

S.36

Absolute Promise - promiser binds himself in any event

Contracts contingent on an impossible future event - *Void

Parties know

E.g. - Sun rises in the West

Parties unaware

A will pay be a sum if B marries C, C dies at that time - Void