Contingent Under CONTRACT Laws

1. INTRODUCTION:to become impossible when such person does
If any contract performance depends upon theanything which renders it impossible. It will be a
happening or not happening of certain event ofvoid contract.
future is called contigent contract.=> Example:
An ordinary contract can become contingentA agrees to pay B a sum of money If B marries
contract. If its performance is made dependentto C. But c marries to D. The marriage of B to C
upon the happening or non happening of anmust now be considered impossible. Although it is
uncertain event, collateral to such contractpossible that D. may die an C may afterwards
contigent contract is also called conditionalmarry B.
contract.(IV) TIME SPECIFIED:
=> Example:According to Sec. 35(1)
A contracts to pay B Rs. 2000 If B marries to C.Contigent contracts to do or not to do anything If
This is contigent Contract.a specified uncertain event happens with In a
=> Collateral Event:specified time become a void. If at the expiration
The collateral event means connected event.of the fixed time such event has not happends or
2. ESSENTIALS:before the time fixed.
Following are the essentials of the conditional=> Example:
contract, (i) the performance of such contractA promises to pay B a sume of money If train
depends uponthe happening or non happening ofreturns to Karachi within 24 hours. The contract is
some futureuncertain event, (ii) The event mustenforceable If train returns with in specified time.
be uncertain, (iii) The happening or non happeningBut If train destroys during the fixed time the
of the eventmust be collateral.contract will be void.
3. RULES OF THE PERFORMANCE OF(V) fixed time expired:
CONTIGENT CONTRACT:Sec 35(2)
Rules of the performance of contigent contract"Contigent contracts to do or not to do anything
are following.II a specified uncertain event does not happened
(I) HAPPENING OF UNCERTAIN EVENT:with in a fixed time may be enforced by law:
According to Sec. 32when time has expired and such event has not
"contigent contracts to do or not to do anythinghappened or before the time fixed has expired it
If an uncertain future event happens cannot bebecomes certain that such event will not happen."
enforced by law, unless and until that event=> Example:
happened. If the event becomes impossible, suchA promises B to pay a sume of money If certain
contract becomes void.I train does not return within a day. The contract
=> Example:may be enforced If train does not return.
A contracts to pay B a sum of 100,000/- when B(VI) IMPOSSIBLE EVENT:
marries C. C dies without being married to B. TheAccording to sec 36.
contract becomes void."Contigent agreement to do or not to do anything
(II) UNHAPPENING OF UNCERTAIN EVENTS:If an impossible event happens are void whether
According to Sec. 33the impossibility of the event is known or not to
"Contigent Contract to do or not to do anythingthe parties to the agreement at the time when it
If an uncertain future event does not happen canis made.
be enforced when the happening of that event=> Example:
becomes impossible but not before.A agrees to pay B a sum of money if B will
=> Example:marry A's daughter's C. C was dead at the time
"A agrees to pay B a sum of money If a certainof agreement. It is void.
ship does not return. The ship is sunk the contract4. CONCLUSION:
can be enforced when the ship sinks.To conclude I can say that, Contigent contract is
(III) TIME NOT SPECIFIED:also known as conditional contract. It is valid
According to Sec. 34.contact. The parties have real interest in the
"If the future event which the contract isoccurrence or non occurrence of the event.
contigent is the way which the person will act atContracts of guarantee, indemnity and insurance
an unspecified time, the event shall be consideredare its example.