Contingent Contract: A Conditional Contract

A contingent contract is a type of contract that is conditional and depends on the occurrence or non-occurrence of a specific event. It is also known as a conditional contract because its enforceability and obligations are contingent upon a future event. In other words, the performance of the contract is subject to the happening or non-happening of a particular event.

Features of a Contingent Contract:

1. Conditionality: A contingent contract is characterized by its conditionality. The rights and obligations of the parties involved are dependent on the occurrence or non-occurrence of a specific event.

2. Future Event: The condition in a contingent contract is related to a future event. This event may or may not happen, and the contract's enforceability is directly linked to it.

3. Uncertainty: The outcome of a contingent contract is uncertain until the condition is fulfilled or the event occurs. It is impossible to predict the future with certainty, and therefore, the contract's performance is contingent on the uncertain event.

4. Enforceability: A contingent contract becomes enforceable only when the condition specified in the contract is fulfilled. Until then, the parties involved cannot be compelled to perform their obligations.

Example:

Let's consider an example to understand the concept of a contingent contract better. Suppose two individuals, A and B, enter into a contract where A agrees to sell his car to B if B passes his driving test within a month. In this scenario:

- The contract is contingent because its enforceability is dependent on the occurrence of a specific event, which is B passing his driving test.

- The future event here is B passing his driving test. If B passes the test within a month, the contract becomes enforceable, and A must sell his car to B. However, if B fails the test or does not take it within the specified time, the contract is not enforceable, and A is not obligated to sell his car.

Conclusion:

In conclusion, a contingent contract is a conditional contract where the performance of the contract is contingent upon the occurrence or non-occurrence of a specific event. It is uncertain until the condition is fulfilled, and its enforceability depends on the fulfillment of the condition. Therefore, the correct answer is option 'b' - a contingent contract is a conditional contract.