Contract :-
An agreement enforcible by law is called a contract.
Contingent contract :-
A contract which is to be executed on the happening of a particular event (s) is called a "contingent contract"
Difference betweent the two :-
Every contract is a contingent contract, this is not true, because the contingency of a contract is actually one of the condition of the execution of the contract, contingent contracts are executed when a certain event (s) has been executed
For Example
If you offer me a free ticket to USA, if I succeed to get 10 best answers in a day.
This is an example of a contingent contract, you are liable to give me the ticket if and only if I get 10 best answers in a day.
So where there is a certain condition to be fulfilled for the execution of the contract it is a contingent contract, otherwise it is a simple contract (eg : sale of a car under consideration of $10,000)
2006-08-09 20:54:30
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answer #1
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answered by Ω Nookey™ 7
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A contract with contingencies is a contract, but it allows one party to avoid the contract if a specified event does or does not occur, or certain conditions are not met.
A simple contract for a house might only contain the address and the price. However, most will have specific contingencies, the most common of which is the financing contingency. It is still a contract, but if the buyer is not able to get the loan specified at the terms specified, the deal is avoidable by the Buyer.
Other contingencies you find in real estate are things like the structural inspection, health tests, and in some cases on the result of a request to the zoning board to allow a particular use of the property.
You also find contingencies in contracts not involving real estate. If you read the fine print of transportation documents like airline tickets, they are contingent on the flight taking place; if the airline cancels the flight because they don't have enough airplanes, weather, or the destination becomes a war zone, they don't have to get you there.
2006-08-09 12:43:59
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answer #2
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answered by Robert J 1
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