Contingent Contracts

Question 1

Contingent contract

Answer 1

Contract to do something , if an event , collateral to contract , happens or does not happen.

Question 2

Essentials of contingent contract

Answer 2

1- Future event
2- uncertain event
3- collateral event

Question 3

Examples of contingent contract

Answer 3

1- Contract of insurance
2- Contract of Guarantee

Question 4

Difference between wagering and contingent contract

Answer 4

Validity:
WA = void + illegal
CC = Valid

Future/uncertain event:
WA = sole determining factor (one event in contract)
CC = Collateral event (Two events in contract)

Interest of parties:
WA = No real interest
CC = Have real interest

Reciprocal promises:
WA = May or may not consist of reciprocal promises
CC = consist of reciprocal promises

Question 5

Contract contingent upon the happening of an event
(If time is fixed)

Answer 5

• can be enforced when event happens within time specified.
• cannot be enforced if event becomes impossible or time passes.

Question 6

Contract contingent upon the happening of an event
(If time is not fixed)

Answer 6

• Can be enforced when event happens.
• cannot be enforced if event becomes impossible.

Question 7

Contract contingent upon the non - happening of an event
(If time is fixed)

Answer 7

• can be enforced when event becomes impossible or does not happen within time specified
• cannot be enforced if event happens within time specified

Question 8

Contract contingent upon the non - happening of an event
(If time is not fixed)

Answer 8

• can be enforced when event becomes impossible
• cannot be enforced if event happens

Question 9

Agreement contingent upon impossible events

Answer 9

Such agreements are void ab-initio.

Question 10

Contract contingent upon the future conduct of a person

Answer 10

Event shall be considered impossible if that person does anything by which it becomes impossible to perform the contract within any definite time.