Assertion: Contingent contract, also called as Wager contract, is a contract to do something or not to do something on the happening or non-happening of an event, which is collateral to the contract.
Reasoning: If the uncertain future event becomes impossible, contingent contracts become void.
Answer & explanation
Correct answer: option 4
Contingent contract, also called as Conditional contract (NOT WAGER), is a contract to do something or not to do something on the happening or non-happening of an event, which is collateral to the contract. Contingent contracts cannot be enforced until the uncertain future event happens. If the uncertain future event becomes impossible, contingent contracts become void.