BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Contingent contract
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Wagering contract
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Quasi contract
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Valid contract
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Detailed explanation-1: -Therefore, all indemnity contracts, guarantee contracts as well as insurance contracts are contingent contracts as they are dependent on a future event.
Detailed explanation-2: -A contract by which one party promises to save the other from loss caused to him by the conduct of the promisor himself, or by the conduct of any other person, is called a contract of indemnity.
Detailed explanation-3: -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.
Detailed explanation-4: -Let Us Define Contingent Contract as Per Section 31 of the Indian Contract Act, 1872. According to the Indian Contract Act, “If two or more parties enter into a contract to do or not do something if an event which is collateral to the contract does or does not happen, then it is a contingent contract.”