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Contingent Contracts (Ss. 31 - 36 ) (A contract to do or not to do…
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
#
Absolute Promise
- promiser binds himself in any event
Conditions as per
S.31
Contingency Dependent on Act of Party
:red_cross:Does not Include :red_cross:
When promise (as act) is dependent on mere will and pleasure of promisor
E.g.
- For a service A will pay whatever he thinks reasonable
Includes
Promise dependent a on voluntary act other, than mere declaration of promisor's will to be bound.
Act of a third person
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
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
:red_cross:Does not Include:red_cross:
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.
S. 32
Compare with
S.56
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
Applied
when - Contract dissolved on own
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
Ship doesn't return within a year
Event becomes impossible
Ship burns within a year
Contract contingent on non-happening of an uncertain future event =
enforceable
Event not occurred within fixed time
Ship doesn't return within a year
The event becomes certainly impossible before time expires
Ship burnt within a year
S.36
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