CONTINGENT CONTRACTS

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• CONTINGENT CONTRACTS
• AND
• WAGERING AGREEMENTS

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• CONTINGENT CONTRACT
• Section 31 defines a contingent contract as a
  contract to do or not to do something, if
  something event., collateral to such contract,
  does or does not happen.
• The event on which the performance depends upon
  may be either an event which is certain to happen
  (though no one knows when it may happen) or it
  may be an event which is uncertain.
• In other words the said event may or may not
  happen. Contracts of insurance, indemnity and
  guarantee, etc are contingent contract.
  Contingent contracts are called conditional
  contracts under English Law.
• ESSENTIAL ELEMENTS OF CONTINGENT CONTRACTS
• 1) The performance of a contingent contract will
  depend on a future event.2) The happening of the
  event must be uncertain.
• 3) The happening or non-happening of such future
  event should not form an essential part of the
  contract but it should only be collateral to it.
• 4) The happening or non-happening of such future
  event must be beyond the powers of the
  contracting parties.

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• RULES REGARDING CONTINGENT CONTRACT
• 1.An event happening Contingent contracts to do
  or not to do anything if an uncertain future
  event happens cannot be enforced by law unless
  and until that event has happened.
• 2.Event not happening. 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.Future contract of living person If the
  future event on which a contract is contingent
  the way in which a person will act an unspecified
  time, the event shall be considered to become
  impossible when such person does anything which
  renders it impossible that he should so act
  within any definite time, or otherwise than under
  further contingencies.

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• 4.Specified event not happening within fixed
  time Contingent contracts to do or not to do
  something if a specified uncertain event does not
  happen within a fixed time may be enforced by law
  when the time fixed has expired, if it becomes
  certain that such event will not happen.
• 5.When void Contingent contracts to do or not
  to do anything if a specified uncertain event
  happens with a fixed time becomes void if, at the
  expiration of the time fixed, such even has not
  happened of if before the time fixed.
• 6.Impossible event 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 the
  agreement at the time when it is made.

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• WAGERING AGREEMENTS
• A wager means a bet.
• According to Anson, wager means promise to give
  money or moneys worth upon the determination of
  an uncertain event in which the parties have no
  material interest other than mutual changes of
  gain or loss.
• ESSENTIALS ELEMENTS OF A WAGER
• 1. There must be two persons holding opposite
  views about an uncertain event. The event may be
  future or past but the result of which is unknown
  to both the parties. Such an event may be legal
  or illegal.
• 2. The two persons agree that dependent on the
  determination of that event in one way, one shall
  pay money to the other and vice versa.3. There
  must be mutual gain or loss.4. Neither of the
  parties should have any control over the
  event.5. The parties must not have any other
  interest in the happening of the event except the
  sum of money which either of them will win or
  loose.
• 6. The parties to a wagering contract intend to
  deal in difference only and do not have any
  intention of effecting delivery.

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• Wagering agreements have been expressly declared
  to be void in India. No suit can be brought for
  recovering anything alleged to be won on any
  wager, or entrusted to any person to abide by the
  result of any game or other uncertain event on
  which any wager is made, (Sec.30)
• DIFFERENCE BETWEEN CONTINGENT CONTRACTS AND
  WAGERING AGREEMENTS
• A wagering agreement consists of reciprocal
  promises whereas a contingent contract may not
  contain reciprocal promises.
• A wagering agreement is essentially of contingent
  nature whereas a contingent contract may not be
  of wagering nature.
• Wagering agreement is void whereas a contingent
  contract is valid.
• In a wagering agreement, the parties have no
  other interest in the subject matter of the
  agreement except the winning or losing of the
  amount of the wager. This is not so in a
  contingent contract.
• In a wagering agreement the future event is the
  sole determining factor while in a contingent
  contract the future event is only collateral.