Which of the following is not a contingent contract? (a) A promise to pay if he repairs his scooter (b) A promise to pay ₹ if scooter is stolen (c)A promise to pay B ₹ 10000 if burnt his hands (d)A promise to pay B ₹ 10000 if it rains on first of the next month?

Question

Answer

Contingent Contract

A contingent contract is a contract that depends on the occurrence of a specific event. The performance of the contract is contingent upon the occurrence of the event. If the event does not occur, the contract becomes void. The Indian Contract Act, 1872, defines a contingent contract as a contract to do or not to do something, if an event, collateral to such contract, does or does not happen.

Examples of Contingent Contracts

(a) A promise to pay if he repairs his scooter - This is a contingent contract because the payment is contingent upon the occurrence of a specific event, which is the repair of the scooter.

(b) A promise to pay ₹ if the scooter is stolen - This is a contingent contract because the payment is contingent upon the occurrence of a specific event, which is the theft of the scooter.

(c) A promise to pay B ₹ 10000 if burnt his hands - This is a contingent contract because the payment is contingent upon the occurrence of a specific event, which is the burning of hands.

(d) A promise to pay B ₹ 10000 if it rains on the first of the next month - This is not a contingent contract because the occurrence of rain on the first of the next month is not a collateral event. The performance of the contract does not depend on the occurrence of this event, and the contract is not void if it does not occur.

Conclusion

In conclusion, a contingent contract is a contract that depends on the occurrence of a specific event. The performance of the contract is contingent upon the occurrence of the event. Out of the four options given, option (d) is not a contingent contract because the performance of the contract does not depend on the occurrence of a collateral event.

Answer

A

Similar CA Foundation Doubts

A agrees to pay Rs. 1,000 to B if it rains. B promises to pay a like amount if it does not rain. The agreement is

In case of anticipatory breach, where the promisee elects to keep the contract alive, if during the time the contract remains open, some event happens discharging the promisor from his liability, the contract becomes

If a person whose name is A promises to the person, whose name is B, to sale his car an exchange of that be promises to a to give 5 lakh then is A promisor and promisee both in this contract? First of all answer in yes or no then explain.?

The contracts in which law creates certain rights & obligations similar to those of a contract are

Ramesh promises Ram to sale his car for 10 lakh rupees and in exchange of that Ram promises Ramesh to give his car. In this contract is Ramesh both promiser or promisee? First of all answer in yes or no than explain.?

Top Courses for CA FoundationView all

Quantitative Aptitude for CA Foundation

Principles and Practice of Accounting

Business Laws for CA Foundation

Business Economics for CA Foundation

Mock Tests & Past Year Papers for CA Foundation

Top Courses for CA Foundation

Top Courses for CA Foundation

Suggested Free Tests

Related Content

CA Foundation Courses

Other Courses

How To Prepare?

Other Exams

Company