DEFINITIONA contingent contract is a contract to do or not to do something, if some event, collateral to such contract, does or does not happen.
Characteristics1. Its performance depends upon the happening or non-happening in future of some event.2. The event must be uncertain.3. The uncertain future event must be collateral to the contract.
Rules1. If a contingent contract is to be performed if an uncertain future event happens, it cannot be enforced until the event has happened.2. Ii depends for its performance on doing of an act by the promisor.3. It contemplates doing of a thing if a specified event happens within a fixed time.4. It contemplates to do anything if an impossible event happens.
Wagering vs. continent• Consist of reciprocal • Not contain reciprocal promises. promises.• Is of contingent nature. • May not be of a• Is void agreement. wagering nature.• It is a game of chance. • Is valid agreement.• The future event is sole • It is not in case of determining factor. contingent contract. • Future event is only collateral.