Which of the following are legal requirement of a valid contingent contract?a)It must be a valid contractb)It must be certainc)The performance of the contract must be conditionald)The event must be collateral to the contractCorrect answer is 'A,C,D'. Can you explain this answer?

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Which of the following are legal requirement of a valid contingent contract?

a)
It must be a valid contract
b)
It must be certain
c)
The performance of the contract must be conditional
d)
The event must be collateral to the contract

Correct answer is 'A,C,D'. Can you explain this answer?

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Which of the following are legal requirement of a valid contingent con...

Legal Requirements of a Valid Contingent Contract:

A: It must be a valid contract

A valid contingent contract must meet the basic requirements for a valid contract, which include:

Offer and acceptance: There must be a clear offer by one party and acceptance by the other party.

Consideration: Both parties must exchange something of value, such as money or goods.

Legal capacity: The parties involved must have the legal capacity to enter into a contract, such as being of legal age and mentally competent.

Legal purpose: The contract must be for a lawful purpose and not involve any illegal activities.

C: The performance of the contract must be conditional

In a contingent contract, the performance of the contract is dependent on the occurrence or non-occurrence of a specific event. The contract will only be enforceable if the specified event takes place or does not take place, as agreed upon by the parties involved.

D: The event must be collateral to the contract

In a contingent contract, the event that determines the performance of the contract must be collateral or incidental to the main purpose of the contract. The event should not be directly related to the performance of the contract but should have an impact on it.

B: It must be certain

Although option B is included in the given choices, it is not a legal requirement for a valid contingent contract. While certainty is important in contract law, a contingent contract allows for the performance of the contract to be dependent on the occurrence or non-occurrence of a specific event, which may introduce an element of uncertainty.

In conclusion, the legal requirements for a valid contingent contract include being a valid contract in general, having the performance of the contract conditional on a specific event, and having the event be collateral to the contract.

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Which of the following are legal requirement of a valid contingent contract?a)It must be a valid contractb)It must be certainc)The performance of the contract must be conditionald)The event must be collateral to the contractCorrect answer is 'A,C,D'. Can you explain this answer?

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