Contingent contracts under Indian contract act 1872

Contingent Contract under the Indian Contract Act, 1872, with detailed explanations of each relevant section and illustrative examples:

Core Definition: Section 31

 * Definition:

   * "A contingent contract is a contract to do or not to do something, if some event, collateral to such contract, does or does not happen."

 * Explanation:

   * This section establishes the fundamental concept. The key is that the contract's fulfillment hinges on a future, uncertain event that is "collateral" (secondary) to the main agreement.

 * Example:

   * "A" agrees to pay "B" ₹10,000 if "B's" house is destroyed by fire. The payment is contingent on the uncertain event of the fire.

Rules of Enforcement:

 * Section 32: Contingent Contracts on an Event Happening

   * Rule:

     * If a contract is contingent on a future uncertain event happening, it cannot be enforced until that event has occurred. If the event becomes impossible, the contract becomes void.

   * Example:

     * "A" contracts to pay "B" ₹10,000 if a certain ship returns. The contract cannot be enforced until the ship returns. If the ship sinks, the contract becomes void.

 * Section 33: Contingent Contracts on an Event Not Happening

   * Rule:

     * If a contract is contingent on a future uncertain event not happening, it can be enforced when the happening of that event becomes impossible.

   * Example:

     * "A" agrees to pay "B" ₹10,000 if a certain ship does not return. The contract can be enforced if the ship sinks, or if it is clear that the ship cannot return.

 * Section 34: Contingency Dependent on Conduct

   * Rule:

     * If the future event on which a contract is contingent is the way a person will act at an unspecified time, that person must not merely promise to act that way, but must actually act that way.

   * Explanation:

     * Essentially, the contingent event cannot solely rely on a persons future will, it must be based on a concrete action.

   * Example:

     * "A" agrees to pay "B" if "B" marries "C". The contract cannot be enforced until "B" actually marries "C". If "B" just says he will marry "C", that is not enough.

 * Section 35: Contingent Contracts Within a Fixed Time

   * Rule:

     * If a contract is contingent on a future uncertain event happening within a fixed time, the contract becomes void if the event does not happen within that time, or if, before the time is fixed, the event becomes impossible.

     * If a contract is contingent on a future uncertain event not happening within a fixed time, it can be enforced when the time has expired, and the event has not happened, or before the time expires, if it becomes certain that the event will not happen.

   * Example:

     * "A" promises to pay "B" ₹10,000 if a certain ship returns within a year. If the ship does not return within a year, the contract becomes void. If the ship burns within the year the contract becomes void.

     * "A" promises to pay "B" 10,000 if a certain ship does not return within a year. If after a year the ship has not returned, the contract is enforceable. If the ship burns within the year, the contract is enforceable.

 * Section 36: Contingent Agreements on Impossible Events

   * Rule:

     * Contingent agreements to do or not to do anything, if an impossible event happens, are void, whether the impossibility of the event is known or not to the parties to the agreement at the time when it is made.

   * Example:

     * "A" agrees to pay "B" ₹10,000 if two straight lines should enclose a space. This agreement is void.

I hope this breakdown with examples clarifies the various aspects of contingent contracts under the Indian Contract Act.