Indian Contract Act Section 31 — “Contingent contract” defined

Summary

A contingent contract is an agreement to do something, or to not do something, only if a certain event happens or does not happen. That event must be separate from, or collateral to, the contract itself. In simple terms, the contract's obligation depends on whether an outside event occurs or fails to occur.

Official Text

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. Illustration

Related Judgments

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• COMMISSIONER OF WEALTH TAX, MYSORE vs HER HIGHNESS VIJAYABA, DOWGER MAHARANI SAHEB OF BHAVNAGAR PALACE, BHA — Supreme Court of India (1979)