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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.
Most Upvoted Answer
A contingent contract dependent on the happening of future uncertain e...
Understanding Contingent Contracts
A contingent contract is a type of agreement that is dependent on the occurrence of a future, uncertain event. The enforceability of such contracts hinges on whether the specified event takes place.
When Can a Contingent Contract be Enforced?
- The enforceability of a contingent contract occurs only when the event happens. This means that if the uncertain event outlined in the contract occurs as anticipated, both parties are obligated to fulfill their respective roles as per the agreement.
Implications of the Event Not Happening
- If the contingent event does not happen, the contract becomes void and unenforceable. The parties involved cannot claim any performance or compensation since the essential condition for the contract has not been met.
Event Becomes Impossible
- If the event outlined in the contract becomes impossible, the contract is also rendered void. This means that if circumstances change so that the event can no longer occur (e.g., a specific property is destroyed), the obligations under the contract dissolve.
Conclusion
- In summary, for a contingent contract to be enforceable, it must be predicated on the successful occurrence of the future uncertain event. If the event occurs, the contract is valid and enforceable. If it does not occur or becomes impossible, the contract is void, and no party has any obligation to fulfill the terms of the agreement.
This understanding is crucial for anyone studying contract law, particularly in the context of CA Foundation, as it clarifies the conditions under which contracts can be enforced.
A contingent contract is a type of agreement that is dependent on the occurrence of a future, uncertain event. The enforceability of such contracts hinges on whether the specified event takes place.
When Can a Contingent Contract be Enforced?
- The enforceability of a contingent contract occurs only when the event happens. This means that if the uncertain event outlined in the contract occurs as anticipated, both parties are obligated to fulfill their respective roles as per the agreement.
Implications of the Event Not Happening
- If the contingent event does not happen, the contract becomes void and unenforceable. The parties involved cannot claim any performance or compensation since the essential condition for the contract has not been met.
Event Becomes Impossible
- If the event outlined in the contract becomes impossible, the contract is also rendered void. This means that if circumstances change so that the event can no longer occur (e.g., a specific property is destroyed), the obligations under the contract dissolve.
Conclusion
- In summary, for a contingent contract to be enforceable, it must be predicated on the successful occurrence of the future uncertain event. If the event occurs, the contract is valid and enforceable. If it does not occur or becomes impossible, the contract is void, and no party has any obligation to fulfill the terms of the agreement.
This understanding is crucial for anyone studying contract law, particularly in the context of CA Foundation, as it clarifies the conditions under which contracts can be enforced.
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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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