Section 31 The Indian Contract Act, 1872
Section 31 of the Indian Contract Act, 1872 deals with "Contingent Contracts" and defines what a contingent contract is.
🔹 Section 31 – Definition of Contingent Contract:
"A contingent contract is a contract to do or not to do something, if some event, collateral to such contract, does or does not happen."
🔍 Explanation:
A contingent contract is a type of contract where the performance depends upon the happening or non-happening of a future uncertain event, which is collateral (i.e., not directly part of the contract but related to it).
📘 Illustration:
A contracts to pay B ₹10,000 if B’s house is burnt.
➤ This is a contingent contract, because it depends on a future uncertain event (the house burning down).
✅ Key Elements of a Contingent Contract:
Future uncertain event
Collateral nature of the event
Performance depends on the happening/non-happening of that event
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