Chapter 05: Contingent Contracts

Question 1

cntingent contract and its essentials?

Answer 1

Definition
is a contract to do (not to do) something, if some event collateral to such contract happens or does not happens
Example, insurance contract, indemnity contract and guarrentee contract

Essentials:

1. Dependence on a Future Event:( the event must depend on happening or non-happening of some future event
2. Collateral Event:
3. Uncertain Event:

Question 2

deffenrence between wageering agreement and contingent contract?

Answer 2

Wagering Vs. Contingent Agreement (Main Points):

1. Validity
2. Future/Uncertain Event =sole determining factor =only collateral
3. Interest of parties = no toher interest =real inerest
4. Reciprocal promises = may or may not =consist of

Question 3

Rules regarding Performance of Contingent Contracts?

Answer 3

Contracts contingent on happening
if time fixed:
> can be enforce only when contract happen in time
> cannot be enforced if not happen in time or impossilbe
if time not fixed:
> can enforce if happens
> cannot be enforced if becomes empossile

Contracts contingent on non-happening.
if time fixed:
> can enforce only if not happen in time or become impossilble
> cannnot be enforced if hapeen in time
if time not fixed:
> can enforce if becmes impossible
> cannot enforce if happens

Contingent on impossible event:
&raquo_space;>Void

Contingent on future conduct of a person.
>such event shall be considered impossible if such person does anything by which it becomes immpossibe to perform contract in DEFINITE time