CSEET · Business Laws and Management · Elements of Law of Contracts
Under the Indian Contract Act, 1872, a contingent contract is a contract to do or not to do something, if some event:
A contingent contract is one to do or not to do something if some event collateral to the contract does or does not happen. The event is outside the core promise and is uncertain, which is the definition given in Section 31.
- ACollateral to such contract does or does not happenCorrect
- BThat forms the main consideration of the contract is performed
- CWithin the control of the promisor takes place
- DIs certain to happen on a fixed date
Explanation
Section 31 defines a contingent contract as one to do or not to do something if some event, collateral to such contract, does or does not happen. The event must be collateral, not the main performance, and it is uncertain. The other options misstate this requirement.
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