Which of the following is correct in respect of a Contingent Contract?
Answer & explanation
Correct answer: option 3
Contingent contract, also called as Conditional 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. Contingent contracts cannot be enforced until the uncertain
future event happens. If the uncertain future event becomes impossible, contingent
contracts become void.