Contingent contract
Also called: Conditional contract
A contract to do or not to do something if some event, collateral to such contract, does or does not happen. Section 31 of the Indian Contract Act, 1872.
Explained
Section 31 of the Indian Contract Act, 1872 defines a contingent contract as a contract to do or not to do something, if some event, collateral to such contract, does or does not happen. The illustration is a contract of insurance in substance: A contracts to pay B Rs 10,000 if B's house is burnt. Contracts of indemnity, guarantee and insurance are the usual practical examples.
Three elements follow from the definition and the sections after it. The performance depends on a future event; the event is uncertain; and the event is collateral, meaning it is neither a performance promised under the contract nor the consideration for it. An event that is simply the other party's own promised performance makes the contract reciprocal, not contingent. A wagering agreement is also conditional on an uncertain event, but it is void under Section 30, whereas a contingent contract is valid.
Sections 32 to 36 set the enforcement rules. Under Section 32, a contract contingent on an uncertain future event happening cannot be enforced unless and until the event has happened, and becomes void if the event becomes impossible. Under Section 33, a contract contingent on an event not happening can be enforced when its happening becomes impossible, and not before. Section 34 deems the future conduct of a living person impossible when he does anything that makes it impossible that he should so act within any definite time. Section 35 deals with events to happen, or not to happen, within a fixed time. Section 36 declares contingent agreements on an impossible event void, whether or not the impossibility is known to the parties.
Examiners test the word 'collateral' in a fill-in-the-blank form, the timing rules in Sections 32 and 33, the illustration of B marrying C, and the contrast with wagering agreements.
What the law says
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.
Illustration
Defines contingent contract
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.
Illustrations
Enforcement when contingent on an event happening
Contingent contracts to do or not to do anything if an uncertain future event does not happen can be enforced when the happening of that event becomes impossible, and not before.
Illustration
A agrees to pay B a sum of money if a certain ship does not return. The ship is sunk. The contract can be enforced when the ship sinks.
Enforcement when contingent on an event not happening
If the future event on which a contract is contingent is the way in which a person will act at an unspecified time, the event shall be considered to become impossible when such person does anything which renders it impossible that he should so act within any definite time, or otherwise than under further contingencies.
Illustration
A agrees to pay B a sum of money if B marries C. C marries D. The marriage of B to C must now be considered impossible, although it is possible that D may die and that C may afterwards marry B.
When the future conduct of a living person is deemed impossible
Contingent contracts to do or not to do anything if a specified uncertain event happens within a fixed time become void if, at the expiration of the time fixed, such event has not happened, or if, before the time fixed, such event becomes impossible.
When contracts may be enforced, which are contingent on specified event not happening within fixed time.—Contingent contracts to do or not to do anything, if a specified uncertain event does not happen within a fixed time may be enforced by law when the time fixed 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.
Illustrations
Events to happen or not happen within a fixed time
Contingent agreements to do or not to do anything, if an impossible event happens, are void, whether the impossibility of the event is known or not to the parties to the agreement at the time when it is made.
Illustrations
(a) A agrees to pay B 1,000 rupees if two straight lines should enclose a space. The agreement is void.
Agreements contingent on impossible events void
Example
Illustration to Section 33: A agrees to pay B a sum of money if a certain ship does not return. The ship is sunk. The contract can be enforced when the ship sinks.
For the exam
- Defined in Section 31 ICA: performance depends on a collateral, uncertain future event.
- Event happening: enforceable only after it happens; void if it becomes impossible (Section 32).
- Event not happening: enforceable when its happening becomes impossible (Section 33).
- Contingent agreement on an impossible event is void, known or not (Section 36).
- Contingent contracts are valid; wagering agreements are void (Section 30).
48 questions in the Law Maker question bank use this term. Practise Contract Law questions
Related terms
- ContractUnder Section 2(h) of the Contract Act, an agreement enforceable by law. Section 10 lists what makes an agreement a contract.
- VoidHaving no legal effect. Under Section 2(g) of the Contract Act an agreement not enforceable by law is void, and under Section 2(j) a contract becomes void when it ceases to be enforceable.
- Contract of indemnityUnder Section 124 of the Contract Act, a contract by which one party promises to save the other from loss caused by the conduct of the promisor or of any other person.
- Contract of guaranteeUnder Section 126 of the Contract Act, a contract to perform the promise, or discharge the liability, of a third person in case of his default. It may be oral or written.
- AgreementUnder Section 2(e) of the Contract Act, every promise and every set of promises forming the consideration for each other. An agreement enforceable by law is a contract.
Further reading
Checked 6 November 2026. Statutory text is quoted from the Bare Acts library, taken from India Code. See the full glossary.