Question

The nature of a contingent contract is ___________.

• A. It is void
• B. It is valid
• C. It is voidable
• D. It is unenforceable

Answer 1

Answer: (B)

It is valid

A contingent contract is one that is contingent as it depends on something else happening. Under Section 31 of the Indian Contract Act, 1872, contingent contracts are defined as follows: “If two or more parties enter into a contract to do or not do something, if an event which is collateral to the contract does or does not happen, then it is a contingent contract". This means that a contingent contract is valid only if it is a contract to do or not to do something.