Contingent contracts
Contingent means that which is dependent on something else
Contingent contract is a contract to do or not to do something,
if some event , collateral to such contract, does or does not
happen.
Eg a contracts to pay rs 10000 if B,s house is burnt.
Three characteristics
Performance depend upon happening or non happening in future of
some event
Event must be certain
Event must be collateral to the contract
Case
A agrees to construct a swimming pool for B for Rs 80,000. the
payment is to be made by B only on the completion of the pool. Is
this a contingent contract?
Sol
No as the completion of the work being the the very thing
contracted for, is not collateral to main contract.
Case
There was a contract for the sale of American parachute cloth by
A to B. the goods were delivered when the arrived. A failed to give
delivery and B sued for damages for breach. A pleaded that the
contract was a conditional one and as the goods had not arrived he
had no obligation to give delivery.
Held the contract was absolute one and the obligation of A was
not contingent upon the arrival of the
