Question Description
Direction: Read the following passage carefully and answer the questions given below:In contracts of insurance, indemnity or guarantee one thing in common is that they create an obligation on the promisor if an event which is collateral to the contract does or does not happen. The insurer is not called into action until the event of the death of the insured happens. This is a contingent contract.Under Section 31 of the Indian Contract Act, 1872, contingent contracts are defined as a contract in which two or more parties enter into a contract to do or not do something, if an event which is collateral to the contract does or does not happen, then it is a contingent contract.The condition for which the contract has been entered into must be a future event, and it should be uncertain. If the performance of the contract is dependent on an event, which is although a future event, but certain and sure to happen, then itll not be considered as a contingent contract.The contingent contracts to do or abstain from doing something if an uncertain future event happens. However, the contract cannot be enforced by law unless the event takes place. If the event becomes impossible, such contracts become void.If a contract contingent upon how a person will act at a future time, the event shall be considered impossible when such person does anything which makes it impossible for the event to happen. Such an agreement is valid.Contingent contracts to do or not to do anything if a future uncertain event happens within a fixed time. Such a contract is void if the event does not happen and the time lapses. It is also void if before the time fixed, the happening of the event becomes impossible. Contingent contract to do or not to do anything if an uncertain event does not happen within a fixed time may be enforced by law when the fixed time has expired, and such event has not happened, or before the time fixed has expired, if it becomes certain that such event will not happen.[Extracted with edits and revision from Contingent Contracts under Indian Contract Act, blog by ipleaders]Q.X, a private insurer, and Y have entered into a contract for fire insurance on Ys house. Under the agreement, X commits to pay Y Rs. 5 lakh in the event of his house being destroyed by fire in exchange for an annual premium of Rs. 10,000. Can this contract be classified as contingent?a)Yes, because it depends on the contingency of the house catching fire.b)No, because the contract is not influenced by any form of contingency.c)Yes, because the contract includes adequate consideration.d)Yes, because the contract is legally binding.Correct answer is option 'A'. Can you explain this answer? for CLAT 2024 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about Direction: Read the following passage carefully and answer the questions given below:In contracts of insurance, indemnity or guarantee one thing in common is that they create an obligation on the promisor if an event which is collateral to the contract does or does not happen. The insurer is not called into action until the event of the death of the insured happens. This is a contingent contract.Under Section 31 of the Indian Contract Act, 1872, contingent contracts are defined as a contract in which two or more parties enter into a contract to do or not do something, if an event which is collateral to the contract does or does not happen, then it is a contingent contract.The condition for which the contract has been entered into must be a future event, and it should be uncertain. If the performance of the contract is dependent on an event, which is although a future event, but certain and sure to happen, then itll not be considered as a contingent contract.The contingent contracts to do or abstain from doing something if an uncertain future event happens. However, the contract cannot be enforced by law unless the event takes place. If the event becomes impossible, such contracts become void.If a contract contingent upon how a person will act at a future time, the event shall be considered impossible when such person does anything which makes it impossible for the event to happen. Such an agreement is valid.Contingent contracts to do or not to do anything if a future uncertain event happens within a fixed time. Such a contract is void if the event does not happen and the time lapses. It is also void if before the time fixed, the happening of the event becomes impossible. Contingent contract to do or not to do anything if an uncertain event does not happen within a fixed time may be enforced by law when the fixed time has expired, and such event has not happened, or before the time fixed has expired, if it becomes certain that such event will not happen.[Extracted with edits and revision from Contingent Contracts under Indian Contract Act, blog by ipleaders]Q.X, a private insurer, and Y have entered into a contract for fire insurance on Ys house. Under the agreement, X commits to pay Y Rs. 5 lakh in the event of his house being destroyed by fire in exchange for an annual premium of Rs. 10,000. Can this contract be classified as contingent?a)Yes, because it depends on the contingency of the house catching fire.b)No, because the contract is not influenced by any form of contingency.c)Yes, because the contract includes adequate consideration.d)Yes, because the contract is legally binding.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CLAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Read the following passage carefully and answer the questions given below:In contracts of insurance, indemnity or guarantee one thing in common is that they create an obligation on the promisor if an event which is collateral to the contract does or does not happen. The insurer is not called into action until the event of the death of the insured happens. This is a contingent contract.Under Section 31 of the Indian Contract Act, 1872, contingent contracts are defined as a contract in which two or more parties enter into a contract to do or not do something, if an event which is collateral to the contract does or does not happen, then it is a contingent contract.The condition for which the contract has been entered into must be a future event, and it should be uncertain. If the performance of the contract is dependent on an event, which is although a future event, but certain and sure to happen, then itll not be considered as a contingent contract.The contingent contracts to do or abstain from doing something if an uncertain future event happens. However, the contract cannot be enforced by law unless the event takes place. If the event becomes impossible, such contracts become void.If a contract contingent upon how a person will act at a future time, the event shall be considered impossible when such person does anything which makes it impossible for the event to happen. Such an agreement is valid.Contingent contracts to do or not to do anything if a future uncertain event happens within a fixed time. Such a contract is void if the event does not happen and the time lapses. It is also void if before the time fixed, the happening of the event becomes impossible. Contingent contract to do or not to do anything if an uncertain event does not happen within a fixed time may be enforced by law when the fixed time has expired, and such event has not happened, or before the time fixed has expired, if it becomes certain that such event will not happen.[Extracted with edits and revision from Contingent Contracts under Indian Contract Act, blog by ipleaders]Q.X, a private insurer, and Y have entered into a contract for fire insurance on Ys house. Under the agreement, X commits to pay Y Rs. 5 lakh in the event of his house being destroyed by fire in exchange for an annual premium of Rs. 10,000. Can this contract be classified as contingent?a)Yes, because it depends on the contingency of the house catching fire.b)No, because the contract is not influenced by any form of contingency.c)Yes, because the contract includes adequate consideration.d)Yes, because the contract is legally binding.Correct answer is option 'A'. Can you explain this answer?.

Solutions for Direction: Read the following passage carefully and answer the questions given below:In contracts of insurance, indemnity or guarantee one thing in common is that they create an obligation on the promisor if an event which is collateral to the contract does or does not happen. The insurer is not called into action until the event of the death of the insured happens. This is a contingent contract.Under Section 31 of the Indian Contract Act, 1872, contingent contracts are defined as a contract in which two or more parties enter into a contract to do or not do something, if an event which is collateral to the contract does or does not happen, then it is a contingent contract.The condition for which the contract has been entered into must be a future event, and it should be uncertain. If the performance of the contract is dependent on an event, which is although a future event, but certain and sure to happen, then itll not be considered as a contingent contract.The contingent contracts to do or abstain from doing something if an uncertain future event happens. However, the contract cannot be enforced by law unless the event takes place. If the event becomes impossible, such contracts become void.If a contract contingent upon how a person will act at a future time, the event shall be considered impossible when such person does anything which makes it impossible for the event to happen. Such an agreement is valid.Contingent contracts to do or not to do anything if a future uncertain event happens within a fixed time. Such a contract is void if the event does not happen and the time lapses. It is also void if before the time fixed, the happening of the event becomes impossible. Contingent contract to do or not to do anything if an uncertain event does not happen within a fixed time may be enforced by law when the fixed time has expired, and such event has not happened, or before the time fixed has expired, if it becomes certain that such event will not happen.[Extracted with edits and revision from Contingent Contracts under Indian Contract Act, blog by ipleaders]Q.X, a private insurer, and Y have entered into a contract for fire insurance on Ys house. Under the agreement, X commits to pay Y Rs. 5 lakh in the event of his house being destroyed by fire in exchange for an annual premium of Rs. 10,000. Can this contract be classified as contingent?a)Yes, because it depends on the contingency of the house catching fire.b)No, because the contract is not influenced by any form of contingency.c)Yes, because the contract includes adequate consideration.d)Yes, because the contract is legally binding.Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.

Here you can find the meaning of Direction: Read the following passage carefully and answer the questions given below:In contracts of insurance, indemnity or guarantee one thing in common is that they create an obligation on the promisor if an event which is collateral to the contract does or does not happen. The insurer is not called into action until the event of the death of the insured happens. This is a contingent contract.Under Section 31 of the Indian Contract Act, 1872, contingent contracts are defined as a contract in which two or more parties enter into a contract to do or not do something, if an event which is collateral to the contract does or does not happen, then it is a contingent contract.The condition for which the contract has been entered into must be a future event, and it should be uncertain. If the performance of the contract is dependent on an event, which is although a future event, but certain and sure to happen, then itll not be considered as a contingent contract.The contingent contracts to do or abstain from doing something if an uncertain future event happens. However, the contract cannot be enforced by law unless the event takes place. If the event becomes impossible, such contracts become void.If a contract contingent upon how a person will act at a future time, the event shall be considered impossible when such person does anything which makes it impossible for the event to happen. Such an agreement is valid.Contingent contracts to do or not to do anything if a future uncertain event happens within a fixed time. Such a contract is void if the event does not happen and the time lapses. It is also void if before the time fixed, the happening of the event becomes impossible. Contingent contract to do or not to do anything if an uncertain event does not happen within a fixed time may be enforced by law when the fixed time has expired, and such event has not happened, or before the time fixed has expired, if it becomes certain that such event will not happen.[Extracted with edits and revision from Contingent Contracts under Indian Contract Act, blog by ipleaders]Q.X, a private insurer, and Y have entered into a contract for fire insurance on Ys house. Under the agreement, X commits to pay Y Rs. 5 lakh in the event of his house being destroyed by fire in exchange for an annual premium of Rs. 10,000. Can this contract be classified as contingent?a)Yes, because it depends on the contingency of the house catching fire.b)No, because the contract is not influenced by any form of contingency.c)Yes, because the contract includes adequate consideration.d)Yes, because the contract is legally binding.Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Direction: Read the following passage carefully and answer the questions given below:In contracts of insurance, indemnity or guarantee one thing in common is that they create an obligation on the promisor if an event which is collateral to the contract does or does not happen. The insurer is not called into action until the event of the death of the insured happens. This is a contingent contract.Under Section 31 of the Indian Contract Act, 1872, contingent contracts are defined as a contract in which two or more parties enter into a contract to do or not do something, if an event which is collateral to the contract does or does not happen, then it is a contingent contract.The condition for which the contract has been entered into must be a future event, and it should be uncertain. If the performance of the contract is dependent on an event, which is although a future event, but certain and sure to happen, then itll not be considered as a contingent contract.The contingent contracts to do or abstain from doing something if an uncertain future event happens. However, the contract cannot be enforced by law unless the event takes place. If the event becomes impossible, such contracts become void.If a contract contingent upon how a person will act at a future time, the event shall be considered impossible when such person does anything which makes it impossible for the event to happen. Such an agreement is valid.Contingent contracts to do or not to do anything if a future uncertain event happens within a fixed time. Such a contract is void if the event does not happen and the time lapses. It is also void if before the time fixed, the happening of the event becomes impossible. Contingent contract to do or not to do anything if an uncertain event does not happen within a fixed time may be enforced by law when the fixed time has expired, and such event has not happened, or before the time fixed has expired, if it becomes certain that such event will not happen.[Extracted with edits and revision from Contingent Contracts under Indian Contract Act, blog by ipleaders]Q.X, a private insurer, and Y have entered into a contract for fire insurance on Ys house. Under the agreement, X commits to pay Y Rs. 5 lakh in the event of his house being destroyed by fire in exchange for an annual premium of Rs. 10,000. Can this contract be classified as contingent?a)Yes, because it depends on the contingency of the house catching fire.b)No, because the contract is not influenced by any form of contingency.c)Yes, because the contract includes adequate consideration.d)Yes, because the contract is legally binding.Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Direction: Read the following passage carefully and answer the questions given below:In contracts of insurance, indemnity or guarantee one thing in common is that they create an obligation on the promisor if an event which is collateral to the contract does or does not happen. The insurer is not called into action until the event of the death of the insured happens. This is a contingent contract.Under Section 31 of the Indian Contract Act, 1872, contingent contracts are defined as a contract in which two or more parties enter into a contract to do or not do something, if an event which is collateral to the contract does or does not happen, then it is a contingent contract.The condition for which the contract has been entered into must be a future event, and it should be uncertain. If the performance of the contract is dependent on an event, which is although a future event, but certain and sure to happen, then itll not be considered as a contingent contract.The contingent contracts to do or abstain from doing something if an uncertain future event happens. However, the contract cannot be enforced by law unless the event takes place. If the event becomes impossible, such contracts become void.If a contract contingent upon how a person will act at a future time, the event shall be considered impossible when such person does anything which makes it impossible for the event to happen. Such an agreement is valid.Contingent contracts to do or not to do anything if a future uncertain event happens within a fixed time. Such a contract is void if the event does not happen and the time lapses. It is also void if before the time fixed, the happening of the event becomes impossible. Contingent contract to do or not to do anything if an uncertain event does not happen within a fixed time may be enforced by law when the fixed time has expired, and such event has not happened, or before the time fixed has expired, if it becomes certain that such event will not happen.[Extracted with edits and revision from Contingent Contracts under Indian Contract Act, blog by ipleaders]Q.X, a private insurer, and Y have entered into a contract for fire insurance on Ys house. Under the agreement, X commits to pay Y Rs. 5 lakh in the event of his house being destroyed by fire in exchange for an annual premium of Rs. 10,000. Can this contract be classified as contingent?a)Yes, because it depends on the contingency of the house catching fire.b)No, because the contract is not influenced by any form of contingency.c)Yes, because the contract includes adequate consideration.d)Yes, because the contract is legally binding.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Direction: Read the following passage carefully and answer the questions given below:In contracts of insurance, indemnity or guarantee one thing in common is that they create an obligation on the promisor if an event which is collateral to the contract does or does not happen. The insurer is not called into action until the event of the death of the insured happens. This is a contingent contract.Under Section 31 of the Indian Contract Act, 1872, contingent contracts are defined as a contract in which two or more parties enter into a contract to do or not do something, if an event which is collateral to the contract does or does not happen, then it is a contingent contract.The condition for which the contract has been entered into must be a future event, and it should be uncertain. If the performance of the contract is dependent on an event, which is although a future event, but certain and sure to happen, then itll not be considered as a contingent contract.The contingent contracts to do or abstain from doing something if an uncertain future event happens. However, the contract cannot be enforced by law unless the event takes place. If the event becomes impossible, such contracts become void.If a contract contingent upon how a person will act at a future time, the event shall be considered impossible when such person does anything which makes it impossible for the event to happen. Such an agreement is valid.Contingent contracts to do or not to do anything if a future uncertain event happens within a fixed time. Such a contract is void if the event does not happen and the time lapses. It is also void if before the time fixed, the happening of the event becomes impossible. Contingent contract to do or not to do anything if an uncertain event does not happen within a fixed time may be enforced by law when the fixed time has expired, and such event has not happened, or before the time fixed has expired, if it becomes certain that such event will not happen.[Extracted with edits and revision from Contingent Contracts under Indian Contract Act, blog by ipleaders]Q.X, a private insurer, and Y have entered into a contract for fire insurance on Ys house. Under the agreement, X commits to pay Y Rs. 5 lakh in the event of his house being destroyed by fire in exchange for an annual premium of Rs. 10,000. Can this contract be classified as contingent?a)Yes, because it depends on the contingency of the house catching fire.b)No, because the contract is not influenced by any form of contingency.c)Yes, because the contract includes adequate consideration.d)Yes, because the contract is legally binding.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Direction: Read the following passage carefully and answer the questions given below:In contracts of insurance, indemnity or guarantee one thing in common is that they create an obligation on the promisor if an event which is collateral to the contract does or does not happen. The insurer is not called into action until the event of the death of the insured happens. This is a contingent contract.Under Section 31 of the Indian Contract Act, 1872, contingent contracts are defined as a contract in which two or more parties enter into a contract to do or not do something, if an event which is collateral to the contract does or does not happen, then it is a contingent contract.The condition for which the contract has been entered into must be a future event, and it should be uncertain. If the performance of the contract is dependent on an event, which is although a future event, but certain and sure to happen, then itll not be considered as a contingent contract.The contingent contracts to do or abstain from doing something if an uncertain future event happens. However, the contract cannot be enforced by law unless the event takes place. If the event becomes impossible, such contracts become void.If a contract contingent upon how a person will act at a future time, the event shall be considered impossible when such person does anything which makes it impossible for the event to happen. Such an agreement is valid.Contingent contracts to do or not to do anything if a future uncertain event happens within a fixed time. Such a contract is void if the event does not happen and the time lapses. It is also void if before the time fixed, the happening of the event becomes impossible. Contingent contract to do or not to do anything if an uncertain event does not happen within a fixed time may be enforced by law when the fixed time has expired, and such event has not happened, or before the time fixed has expired, if it becomes certain that such event will not happen.[Extracted with edits and revision from Contingent Contracts under Indian Contract Act, blog by ipleaders]Q.X, a private insurer, and Y have entered into a contract for fire insurance on Ys house. Under the agreement, X commits to pay Y Rs. 5 lakh in the event of his house being destroyed by fire in exchange for an annual premium of Rs. 10,000. Can this contract be classified as contingent?a)Yes, because it depends on the contingency of the house catching fire.b)No, because the contract is not influenced by any form of contingency.c)Yes, because the contract includes adequate consideration.d)Yes, because the contract is legally binding.Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CLAT tests.