Site navigation

A contracts to pay B Rs. 10,000/- if B's house is burnt. What type of contract is this?

This is a contingent contract because A’s duty to pay depends on the collateral event of B’s house burning. Section 31 uses this exact example to illustrate the definition.…

Choose your answer

A contracts to pay B Rs. 10,000/- if B's house is burnt. What type of contract is this?

Select one answer
Answer and explanation

Correct answer C

This is a contingent contract because A’s duty to pay depends on the collateral event of B’s house burning. Section 31 uses this exact example to illustrate the definition. A condition tied to an uncertain event does not by itself make a contract a wager or unlawful; those classifications require additional features absent here.

Practice for these exams

Related question papers

Related exam syllabi

Related questions in this topic