what is the difference between a contingent contract and a normal contract?
2007-06-26 18:12:44 · 5 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics
A contract is an agreement is a contract if it is made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and is not hereby expressly declared to be void. Whereas a "contingent contract" is a contract to do or not to do something, if some event, collateral to such contract, does or does not happen. The only difference between the two is the happening or not happening of some event that makes is complete, legal, valid & enforceable in law if it is a contingent contract whereas a normal contract is complete, legal, valid & enforceable on the completion on free consent of the agreement between the parties for a lawful consideration.
2007-06-26 18:50:14 · answer #1 · answered by vijay m Indian Lawyer 7 · 1⤊ 0⤋
A "contingent contract" is a contract to do or not to do something, if some event, collateral to such contract, does or does not happen.
1. Contingent contracts to do or not to do anything in an uncertain future event happens, cannot be enforced by law unless and until that event has happened. If the event becomes impossible, such contracts become void.
2. Contingent contracts to do or not to do anything if an uncertain future event does not happen, can be enforced when the happening of that event becomes impossible, and not before.
3. If the future event on which a contract is contingent is the way in which a person will act at an unspecified time, the event shall be considered to become impossible when such person does anything which renders it impossible that the should so act within any definite time, or otherwise than under further contingencies.
4. Contingent contracts to do or not to do anything, if a specified uncertain event happens within a fixed time, become void, if, at the expiration of the time fixed, such event has not happened, or if, before the time fixed, such event becomes impossible. When contracts may be enforced, which are contingent on specified event not happening within fixed time : Contingent contract tutu or not to do anything, if a specified uncertain event does not happen within a fixed time, may be enforced by law when the time fixed has expired and such event has not happened, or before the time fixed has expired, if it become certain that such event will not happen.
5. Contingent agreements to do or not to do anything, if an impossible event happens, are void, whether the impossibility of the event is known or not to the parties to agreement at the time when it is made.
2007-06-26 23:03:57 · answer #2 · answered by aki 2 · 1⤊ 0⤋
A normal contract is an agreement between two or more parties which can be lawfully enforced.
Whereas a contingent contract is an agreement which will become contract only after fulfilling certain conditions laid down in the agreement. That means the contract is subject to fulfilment of the conditions(contingencies).
2007-06-26 20:10:20 · answer #3 · answered by murali k 3 · 1⤊ 0⤋
The former is only a complete and legally binding contract IF certain conditions (CONTINGINCIES) are met. A normal contract has no such contingent conditions affecting its legality.
2007-06-26 18:16:17 · answer #4 · answered by omnisource 6 · 1⤊ 0⤋
It is contract to do something or not to do something if event happened or even does not happend
2007-06-26 20:19:28 · answer #5 · answered by prateek 2 · 0⤊ 0⤋