Contingent contract is valid or illegal?

CPT 5257 views 4 replies

I have a doubt regarding contingent contracts.. 

Contigent contracts are valid whereas wagering contracts are void but is a contingent contract illegal?

When there are two options, valid and illegal, which is the right answer?

 

What is the main difference between a contingent and wagering contract?

Replies (4)

Enforcements of contracts contingent on happening of a future uncertain event: (Sec32)

Contingent contracts to do or not to do anything if an uncertain future event happens cannot be enforced by law unless and until that event has happened. If the event becomes impossible such contracts become void.

The meaning of ‘wagering’ is staking something of value upon the result of some future uncertain event, such as a horse race, or upon the ascertainment of the truth concerning some past or present event.

Wagering agreement being void cannot be enforced in any court of law.

Wagering agreement not unlawful
It has been laid down by the Supreme Court, in Gherulal Parekh v.Mahadeo Das that though a wager is void and unenforceable it is not forbidden by law .Hence a wagering agreement is not unlawful under section 23 of the Contract Act and therefore the transactions collateral to the main transaction are enforceable.

Contingent contracts are valid only when it is happened..if not it will automatically becomes Void.

thanks for the information sir

Thanks a lot for the information..


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