Contingent Agreement Def
In this case, all insurance and compensation contracts would be considered quotas. Illustration: X enters into a contract with Y and promises to deliver 10 pounds. There promises to pay the R. 2000 on delivery. This is not a conditional contract, since Y`s commitment depends on the event that is part of the contract (delivery of 10 pounds) and not on an accompanying event. Whether an agreement to do so or not is based on the impossible event, such an agreement is null and void, whether or not the impossibility of the event is known to the parties to the agreement at the time of its initiation. [Section 36] Emergency clauses can be included in conditional offers, as is the case with employment contracts. A job offer may depend on whether the candidate is taking a drug test or a background test. The contingent has contracts to make or waive in the event of an uncertain future event. However, the contract cannot be enforced by law unless the event takes place. If the event becomes impossible, such contracts become invalidated. [Section 32] For a treaty to be a quota treaty, there must be some essential elements present. These elements constitute a quota contract and, without them, a contract is not contingent.
There must be a legitimate treaty to do something or not to do it. The performance of the contract must be subject to conditions. This event should be a guarantee for these contracts and the event should not be left to the discretion of the promisor. These are a number of rules that must be followed in order for a conditional contract to be enforced. For example, on one occasion, the event does not occur and the event does not occur in a certain time. Illustration: X promises to pay Y, Rs. 100,000 if he marries Z, the most beautiful girl in the neighborhood. It is a quota agreement.
Unfortunately, Z died in a car accident. Since the event is no longer possible, the contract is void. The consequences of the contingency contract were mentioned in paragraphs 32 to 36 of the act. Then there are the consequences of a conditional contract. – Illustration: – A payment contract to B Rs.