If any performance of a contract depends on the event or not of certain future events, it is referred to as a contingent agreement. An ordinary agreement may become contiguous. when the performance of an uncertain event is made dependent on the occurrence or not. Contiguous contracts are also known as conditional contracts for collecting.


Contracts to pay B Rs. 2000 if B marries to C. this is a contingent contract.

There are various types of contracts. Since people can reach different types of agreements for the execution or failure to perform certain actions. Contracts are divided into two types: the Absolute and the Contingent.

The promising person carries out the contract without any condition is an absolute contract. On the other hand, contingent contracts are those in which the Promoter only fulfills his duty under certain conditions.

Looking at insurance, compensation, or guarantee contracts, they all have one thing in common – they make the promisor obligated when an event that is collateral to the deal occurs or does not occur.

A contract is a contingent contract to do anything if something happens or does not happen, or is collateral to such an event.


A contract to pay B Rs. 60,000 if B’s house is burnt. This is a contingent contract. A contingent contract is a conditional contract in nature. When the performance of a contract becomes due only after the happening or nonhappening of some uncertain event, such a contract is known as a contingent contract.


Following are the essentials of the conditional contract.

  • The performance of such a contract depends upon the happening or nonhappening of some future uncertain event.

  • The event must be uncertain.

  • The happening or nonhappening of the event must be collateral.

Firstly, a valid contract between the parties must be concluded. It must satisfy all the fundamental conditions of a valid contract.

The execution of such a contract must depend on whether or not a future event happens.

An uncertain event must be the event on which the contract is performed.

The event on which the fulfillment depends should not be part of a contractual reciprocal promise. The event should be independent or annexed to the agreement.

For example,

if A promises to pay B Rs. 20.000, if he chooses, this does not constitute a contingent contract.


Rules of the performance of the contingent contract are following.

According to section 32.

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 happened. If the event becomes impossible, such a contract becomes void.

According to section 33.

contingent contract 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 but not before.

According to section 34.

if the future event in which the contract is contingent on how the person will act at an unspecified time. The event shall be considered to become impossible when some persons do anything which renders it impossible. It will be a void contract.

According to section 35(I).

Contingent contract to do or not to do something. If a specified uncertain event happens within a specified time becomes avoid if at the expiration of the fixed time such an event did not happen or before the time fixed.

According to section 35(2).

contingent contract to do or not to do anything if a specified uncertain event does not happen within a fixed time may be enforced by law when time has expired and such event has not happened or before the time fixed has expired it becomes certain that such event will not happen.

According to section 36.

Contingent agreement to do or not to do anything. If an impossible event happens is void whether the impossible event is known or not to parties to the agreement at the time when it is made.

Also known as the conditional contract is the contingent contract. A contract is valid. The parties have a genuine interest in the event or not. Examples are warranty contracts, compensation, and insurance.


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