Read the given paragraph carefully and answer given question:
Contracts are the important part of commercial law because all commercial transactions usually begin with an agreement or a contract.
Business transactions involving sale-purchase or exchange of services have become an integral part in day-to-day activities. In such instances, an agreement or a contract is necessary for determining the rights, obligations and liabilities of parties when they enter into any business transaction. The Indian Contract Act is the law governing contracts in India.
In which of the following, no reciprocal promise is required?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → contingent contract
In contingent contract, there is no reciprocal promise.