What constitutes a contingent contract under the Indian Contract Act, 1872, and what are its essential elements?

(a) Definition of ‘Contingent Contract’ (Section 31 of the Indian Contract Act,1872) “A contract to do or not to do something, if some event, collateral to such contract, does or does not happen”. Contracts of Insurance, indemnity and guarantee fall under this category. Meaning of collateral Event: Collateral event is “an event which is neither a performance directly promised as part of the contract, nor the whole of the consideration for a promise”. Essentials of a contingent contract (a) The performance of a contingent contract would depend upon the happening or non-happening of some event or condition. The condition may be precedent or subsequent. (b) The event referred to as collateral to the contract. The event is not part of the contract. The event should be neither performance promised nor a consideration for a promise. (c) The contingent event should not be a mere ‘will’ of the promisor. The event should be contingent in addition to being the will of the promisor. (d) The event must be uncertain. Where the event is certain or bound to happen, the contract is due to be performed, then it is a not contingent contract.