Contingent contract
Yogendra
(Querist) 19 July 2012
This query is : Resolved
whether a partner to a contingent contract can terminate the contract before the happening of the contingent contract.
Please do refer the cases
Thank you..
prabhakar singh
(Expert) 19 July 2012
Please read chapter III of Indian Contract Act 1872 (Ss 31 to 36) and search case laws of your interest on indiakanoon to satisfy your zeal.
Yogendra
(Querist) 19 July 2012
sir not able to find the case...
prabhakar singh
(Expert) 19 July 2012
A contract may be unconditional or absolute on the one hand and conditional or contingent on the other. The absolute or unconditional contract is one without any reservations or conditions and is to be performed under any event.
On the other hand, conditional or contingent contract is one in which a promise is conditional and the contract shall be performed only on the happening or not happening of some future uncertain event. The event must be collateral to the contract. The condition may be precedent or subsequent.
A collateral event is defined as one which is neither a performance directly promised as part of the contract, nor the whole of the consideration for a promise. The event, therefore independent of the contract and does not form part of consideration to it.
The performance of such a contract depends on contingency and such contingency is uncertain.
The test of determining whether the contract is contingent or not, is uncertainty. If contingency is certain it is not a contingent contract.
Essential characteristics of a Contingent Contract:
a) There should be existence of a contingency; happening or non-happening of some event in future.
b) Contingency must be uncertain.
c) The event must be collateral, for example incidental to the contact.
Rules Regarding Contingent Contracts:
Enforcements of contracts contingent on happening of a future uncertain event: (Sec32)
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.
If the event becomes impossible such contracts become void.
more at http://www.citeman.com/4316-contingent-contracts.html#ixzz214qCf9Pb
Yogendra
(Querist) 19 July 2012
thnank you sirr
