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A contingent contract dependent on the happening of future uncertain event can be enforced when the event
- a)happens
- b)becomes impossible
- c)does not happen
- d)either of these.
Correct answer is option 'A'. Can you explain this answer?
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A contingent contract dependent on the happening of future uncertain e...
Contingent Contracts and Enforcement:
A contingent contract is a contract in which the performance of one or both parties depends on the occurrence or non-occurrence of an uncertain future event. In such contracts, the enforceability of the contract depends on the happening or non-happening of the event.
Enforceability of a Contingent Contract:
A contingent contract can be enforced when the event specified in the contract actually happens. In other words, the contract becomes enforceable when the future uncertain event on which it is contingent actually takes place.
Examples:
To better understand the concept, let's consider a few examples:
1. A contract between two parties where Party A agrees to pay Party B a certain amount of money if it rains tomorrow. In this case:
- If it rains tomorrow, the contract becomes enforceable, and Party A is obligated to pay Party B the agreed amount.
- If it does not rain tomorrow, the contract is not enforceable, and Party A is not obligated to pay Party B.
2. A contract between an employer and an employee where the employee will receive a bonus if the company achieves a certain sales target. In this case:
- If the sales target is met, the contract becomes enforceable, and the employee is entitled to receive the bonus.
- If the sales target is not met, the contract is not enforceable, and the employee is not entitled to receive the bonus.
Conclusion:
In summary, a contingent contract dependent on the happening of a future uncertain event can be enforced when the event actually happens. If the event does not occur, the contract is not enforceable. Therefore, option A is the correct answer.
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A contingent contract is a contract in which the performance of one or both parties depends on the occurrence or non-occurrence of an uncertain future event. In such contracts, the enforceability of the contract depends on the happening or non-happening of the event.
Enforceability of a Contingent Contract:
A contingent contract can be enforced when the event specified in the contract actually happens. In other words, the contract becomes enforceable when the future uncertain event on which it is contingent actually takes place.
Examples:
To better understand the concept, let's consider a few examples:
1. A contract between two parties where Party A agrees to pay Party B a certain amount of money if it rains tomorrow. In this case:
- If it rains tomorrow, the contract becomes enforceable, and Party A is obligated to pay Party B the agreed amount.
- If it does not rain tomorrow, the contract is not enforceable, and Party A is not obligated to pay Party B.
2. A contract between an employer and an employee where the employee will receive a bonus if the company achieves a certain sales target. In this case:
- If the sales target is met, the contract becomes enforceable, and the employee is entitled to receive the bonus.
- If the sales target is not met, the contract is not enforceable, and the employee is not entitled to receive the bonus.
Conclusion:
In summary, a contingent contract dependent on the happening of a future uncertain event can be enforced when the event actually happens. If the event does not occur, the contract is not enforceable. Therefore, option A is the correct answer.
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A contingent contract dependent on the happening of future uncertain event can be enforced when the eventa)happensb)becomes impossiblec)does not happend)either of these.Correct answer is option 'A'. Can you explain this answer?
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A contingent contract dependent on the happening of future uncertain event can be enforced when the eventa)happensb)becomes impossiblec)does not happend)either of these.Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A contingent contract dependent on the happening of future uncertain event can be enforced when the eventa)happensb)becomes impossiblec)does not happend)either of these.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A contingent contract dependent on the happening of future uncertain event can be enforced when the eventa)happensb)becomes impossiblec)does not happend)either of these.Correct answer is option 'A'. Can you explain this answer?.
A contingent contract dependent on the happening of future uncertain event can be enforced when the eventa)happensb)becomes impossiblec)does not happend)either of these.Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A contingent contract dependent on the happening of future uncertain event can be enforced when the eventa)happensb)becomes impossiblec)does not happend)either of these.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A contingent contract dependent on the happening of future uncertain event can be enforced when the eventa)happensb)becomes impossiblec)does not happend)either of these.Correct answer is option 'A'. Can you explain this answer?.
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