Contingent Contracts
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No. Of Questions to be Answered : Random 20 out of 40
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Questions and Answers
- 1.
A contract dependent on the happening or non-happening of future uncertain event, is a
- A.
Contingent contract
- B.
Uncertain contract
- C.
Void contract
- D.
Voidable contract.
Correct Answer
A. Contingent contractExplanation
A contingent contract is a contract that is dependent on the occurrence or non-occurrence of a future uncertain event. This means that the contract's performance or obligations are contingent upon the happening or non-happening of this event. In other words, the contract will only be enforceable if the specified event takes place. This distinguishes it from other types of contracts such as void, voidable, or uncertain contracts, which may not have this specific condition tied to their validity or performance.Rate this question:
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- 2.
A contract to do or not do something if some event, collateral to such contract, does or does not happen, is legally known as
- A.
Uncertain contract
- B.
Wagering agreement
- C.
Contingent contract
- D.
Voidable contract.
Correct Answer
C. Contingent contractExplanation
A contingent contract is a legal agreement that depends on the occurrence or non-occurrence of a specific event. In this type of contract, the performance of the contractual obligations is conditional upon the happening or non-happening of an uncertain event. Therefore, it is the most appropriate term to describe a contract that is dependent on a collateral event.Rate this question:
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- 3.
Legally, the term contingent contract is defined in
- A.
Section 30
- B.
Section 31
- C.
Section 56
- D.
Section 68
Correct Answer
B. Section 31Explanation
Section 31 of the law defines the term "contingent contract". This means that the legal definition and understanding of a contingent contract can be found in this particular section of the law.Rate this question:
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- 4.
A contingent contract is ____________
- A.
Void
- B.
Voidable
- C.
Illegal
- D.
Valid
Correct Answer
D. ValidExplanation
A contingent contract is considered valid because it is a legally enforceable agreement that depends on the occurrence or non-occurrence of a specific event in the future. The contract becomes binding only if the specified event takes place. This type of contract allows parties to agree on terms and conditions while providing flexibility based on uncertain circumstances.Rate this question:
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- 5.
The performance of a contingent contract becomes due only upon the happening or non- happening of future uncertain event.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
A contingent contract is a contract that depends on the occurrence or non-occurrence of a future uncertain event. This means that the performance of the contract, such as payment or delivery of goods, will only be required if and when the specified event actually happens or does not happen. Therefore, the statement "The performance of a contingent contract becomes due only upon the happening or non-happening of a future uncertain event" is true.Rate this question:
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- 6.
A promises to pay Rs. 500 to B if it rains on the first Monday of next month. It is a
- A.
Wagering agreement
- B.
Contingent contract
- C.
Void contract
- D.
Voidable agreement.
Correct Answer
B. Contingent contractExplanation
The given scenario describes a contingent contract. A contingent contract is a contract in which the performance of one or both parties depends on the occurrence or non-occurrence of a specific event. In this case, A promises to pay Rs. 500 to B if it rains on the first Monday of next month. The payment is contingent upon the event of rain on a specific day, making it a contingent contract.Rate this question:
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- 7.
A agrees to pay Rs. 5,000 to B if B's car is burnt. It is
- A.
Void
- B.
Voidable contract
- C.
Wagering agreement
- D.
Contingent contract.
Correct Answer
D. Contingent contract.Explanation
The given scenario represents a contingent contract. A contingent contract is a contract in which the performance of one or both parties is dependent on the occurrence or non-occurrence of a specific event in the future. In this case, A agrees to pay Rs. 5,000 to B only if B's car is burnt. The payment is contingent upon the happening of a specific event (car being burnt). Therefore, it falls under the category of a contingent contract.Rate this question:
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- 8.
Which of the following is not an essential requirement of a valid contingent contract?
- A.
The performance must be conditional
- B.
The event must be uncertain
- C.
The event must form part of the contract
- D.
The event must be independent or ancillary
Correct Answer
C. The event must form part of the contractExplanation
An essential requirement of a valid contingent contract is that the event must form part of the contract. This means that the event must be explicitly mentioned and included as a condition in the contract. Without the event being a part of the contract, the contract cannot be considered contingent as it would lack the necessary conditionality and uncertainty associated with contingent contracts.Rate this question:
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- 9.
A agrees to purchase B's horse for Rs.20,000,if the house prover a lucky.It is
- A.
A contingent contract as its performance depends upon uncertain event i.e.,luck of the horse.
- B.
Not a contingent contract as the event (i.e.,luck of the horse) is part of main contract.
- C.
Void contract on account of uncertainty.
- D.
Both (b) and (c).
Correct Answer
D. Both (b) and (c).Explanation
The correct answer is both (b) and (c). This is because the contract is not contingent as the event (luck of the horse) is part of the main contract. Additionally, the contract is void due to the uncertainty surrounding the event.Rate this question:
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- 10.
An uncertain event on the happening or non - happening of which the performance of a contingent contract depends,
- A.
Must be an act of the party.
- B.
Must not be an act of the parties.
- C.
Must be some another independent event
- D.
May be an act of the parties or some other independent event.
Correct Answer
D. May be an act of the parties or some other independent event.Explanation
The correct answer is "May be an act of the parties or some other independent event." In a contingent contract, the performance is dependent on the occurrence or non-occurrence of an uncertain event. This event can be an act of the parties involved in the contract or it can be some other independent event beyond their control. Therefore, the uncertain event can be influenced by the parties or it can be completely independent of them.Rate this question:
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- 11.
A agrees to pay Rs.50,000 to B if he (B) marries C.It is
- A.
A wagering agreement
- B.
A contingent contract
- C.
An uncertain contract
- D.
A voidable contract
Correct Answer
B. A contingent contractExplanation
The given scenario can be classified as a contingent contract because it is dependent on a future event (B marrying C). In this case, A agrees to pay Rs.50,000 to B if the specified event occurs. The payment is contingent upon the occurrence of the event, making it a contingent contract.Rate this question:
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- 12.
Can the collateral event on which contingent contract is dependent,be an act of the party ?
- A.
Yes
- B.
No
Correct Answer
A. YesExplanation
Yes, the collateral event on which a contingent contract is dependent can be an act of the party. This means that the party involved in the contract can take certain actions or perform specific tasks that will determine whether the contract will be fulfilled or not. The party has control over the outcome of the contingent event, and their actions or decisions can directly impact the contract's execution.Rate this question:
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- 13.
A contract dependent on the sole discretion or will of the promisor is
- A.
An uncertain contract
- B.
A contingent contract
- C.
A forbidden contract
- D.
A voidable contract
Correct Answer
A. An uncertain contractExplanation
An uncertain contract is a contract that lacks clarity or certainty in its terms and conditions. In this case, the contract is dependent on the sole discretion or will of the promisor, meaning that the promisor has the power to determine the outcome or fulfillment of the contract based on their own personal preferences or choices. This lack of certainty makes the contract uncertain and unpredictable, as it is subject to the whims of the promisor.Rate this question:
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- 14.
A promises to pay Rs.5,000 to B if he (A) feel like to pay .This agreement is ________
- A.
Valid
- B.
Voidable
- C.
Void
- D.
Illegal
Correct Answer
C. VoidExplanation
This agreement is void because it lacks consideration, which is an essential element of a valid contract. A promises to pay Rs.5,000 to B only if he feels like it, which means there is no enforceable obligation for A to fulfill the promise. Without consideration, the agreement cannot be legally binding and is therefore void.Rate this question:
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- 15.
A contingent contract dependent on the happening of impossible event is ___________
- A.
Void
- B.
Valid
- C.
Voidable
- D.
Illegal
Correct Answer
A. VoidExplanation
A contingent contract dependent on the happening of an impossible event is considered void because it is not possible for the event to occur. In contract law, a contract must have the possibility of being fulfilled in order to be valid. Since an impossible event cannot occur, it means that the contract cannot be fulfilled, rendering it void and unenforceable.Rate this question:
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- 16.
Which of the following fall in the category of contingent contract ?
- A.
Contracts of insurance
- B.
Contracts of Guarantee
- C.
Sale of goods on credit
- D.
Both (a) and(b)
Correct Answer
D. Both (a) and(b)Explanation
Both insurance contracts and guarantee contracts fall in the category of contingent contracts. In insurance contracts, the payment of the claim is contingent upon the occurrence of a specified event, such as an accident or illness. Similarly, in guarantee contracts, the payment is contingent upon the default of the party being guaranteed. On the other hand, the sale of goods on credit does not involve any contingency, as the payment is expected to be made at a later date as per the agreed terms. Therefore, the correct answer is both (a) and (b).Rate this question:
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- 17.
A contract of insurance which provides that fixed amount of money shall be paid on the happening of the event e.g.,fire,accident etc.is a
- A.
Contingent contract
- B.
Wagering agreement
- C.
Uncertain agreement
- D.
None of these
Correct Answer
A. Contingent contractExplanation
A contingent contract is a type of insurance contract that specifies a fixed amount of money to be paid upon the occurrence of a specific event, such as a fire or accident. This means that the payment is contingent upon the event happening. In this case, the contract provides for a fixed amount of money to be paid upon the happening of an event, making it a contingent contract.Rate this question:
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- 18.
A contract of life insurance is a
- A.
Contract of indemnity
- B.
Contract of guarantee
- C.
Wagering agreement
- D.
None of these
Correct Answer
B. Contract of guaranteeExplanation
A contract of life insurance is a contract of guarantee because it provides a guarantee to pay a specified amount of money upon the death of the insured person. The insurance company guarantees to pay the agreed-upon sum to the beneficiaries mentioned in the policy in exchange for regular premium payments by the insured. The purpose of life insurance is to provide financial protection and support to the dependents of the insured after their death, making it a contract of guarantee.Rate this question:
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- 19.
A contract of the insurance which does not provide for the payment of fixed amount but according to the loss suffered by insured person,is a
- A.
Contract of indemnity
- B.
Contract of guarantee
- C.
Wagering agreement
- D.
None of these
Correct Answer
A. Contract of indemnityExplanation
A contract of indemnity is a type of insurance contract where the insurer agrees to compensate the insured for any loss or damage suffered. Unlike a contract of guarantee, which involves a third party guaranteeing the performance of a contract, a contract of indemnity focuses on compensating the insured for actual losses incurred. A wagering agreement, on the other hand, involves placing bets on uncertain outcomes and is not related to insurance. Therefore, the correct answer is a contract of indemnity.Rate this question:
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- 20.
Which of the following statements is correct ?
- A.
Contingent contracts are void and thus not enforceable in the court of law.
- B.
Contingent contracts are valid and thus are enforceable in the court of law.
- C.
Contingent contracts are voidable and thus enforceable at the option of promisor.
- D.
Contingent contracts fall in the category of wagering agreements.
Correct Answer
B. Contingent contracts are valid and thus are enforceable in the court of law.Explanation
Contingent contracts are valid and thus are enforceable in the court of law. This means that if a contract is contingent upon the occurrence of a specific event, it is still considered legally binding and can be enforced by the court. The enforceability of contingent contracts provides parties with a level of security and assurance that their agreements will be upheld by the legal system.Rate this question:
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- 21.
A contingent contract dependent on the happening of future uncertain event can be enforced when that event
- A.
Happens
- B.
Becomes impossible
- C.
Does not happen
- D.
Both(a)and(c)
Correct Answer
A. HappensExplanation
A contingent contract dependent on the happening of a future uncertain event can be enforced when that event happens. This means that if the event specified in the contract actually occurs, then the contract becomes valid and enforceable. The occurrence of the event is a crucial condition for the contract to come into effect and for the parties involved to fulfill their respective obligations. If the event does not happen or becomes impossible, then the contract may not be enforceable as it is contingent upon the happening of that specific event.Rate this question:
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- 22.
When the future uncertain event, on the happening of which the contract is dependent, becomes impossible then the contract becomes. __________
- A.
Valid
- B.
Voidable
- C.
Void
- D.
None of these
Correct Answer
C. VoidExplanation
When the future uncertain event, on the happening of which the contract is dependent, becomes impossible, the contract becomes void. This means that the contract is considered null and void from the beginning and has no legal effect. Void contracts are unenforceable by law and do not create any legal obligations or rights for the parties involved.Rate this question:
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- 23.
A contracts to pay Rs. 50,000 to B if the (B) marries C. But C dies before marriage. The contract between A and B.
- A.
Cannot be enforced
- B.
Can be enforced at the option of A
- C.
Can be enforced if B marries C's sister
- D.
Can be enforced at the option of B.
Correct Answer
A. Cannot be enforcedExplanation
The contract between A and B cannot be enforced because the condition for payment, which is B marrying C, did not occur. Since C died before the marriage, the condition specified in the contract was not fulfilled, rendering the contract invalid. Therefore, A is not obligated to pay Rs. 50,000 to B.Rate this question:
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- 24.
A contingent contract dependent on the non- happening of future uncertain event can be enforced when that event.
- A.
Happens
- B.
Becomes impossible
- C.
Does not become impossible
- D.
Both (a) and (c).
Correct Answer
B. Becomes impossibleExplanation
A contingent contract dependent on the non-happening of a future uncertain event can be enforced when that event becomes impossible. This means that if the event that the contract is contingent upon becomes impossible to occur, the contract can still be enforced. In other words, if the condition that the contract is based on is no longer possible, the contract can still be upheld.Rate this question:
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- 25.
A contingent contract dependent on the non- happening of future uncertain event becomes void when such event
- A.
Happens
- B.
Does not become impossible
- C.
Does not happen
- D.
Both (a) and (b).
Correct Answer
D. Both (a) and (b).Explanation
A contingent contract is a contract that is dependent on the occurrence or non-occurrence of a future uncertain event. If the event happens, the contract becomes void. Similarly, if the event does not become impossible, meaning there is still a possibility for it to occur, the contract also becomes void. Therefore, both (a) and (b) are correct explanations for why a contingent contract becomes void.Rate this question:
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- 26.
A agrees to pay Rs. 10,000 B if a certain ship does not return. This is a contingent contract and can be enforced when the ship.
- A.
Returns
- B.
Sinks
- C.
Does not sink
- D.
Both (a) and (c).
Correct Answer
B. SinksExplanation
A contingent contract is a contract that depends on the occurrence or non-occurrence of a specific event. In this case, A agrees to pay Rs. 10,000 to B if a certain ship does not return. The question asks for the correct answer, and the correct answer is "Sinks". This means that the contingent contract can be enforced when the ship sinks. The sinking of the ship triggers the payment obligation for A towards B.Rate this question:
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- 27.
A agrees to pay Rs. 10,000 B if a certain ship does not return. If the ship returns, then the contract becomes
- A.
Void
- B.
Valid
- C.
Voidable
- D.
Illegal
Correct Answer
A. VoidExplanation
If the ship returns, the contract becomes void because the condition that would trigger the payment of Rs. 10,000 to B has not been met. The ship's return nullifies the agreement between A and B, making it legally unenforceable.Rate this question:
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- 28.
A contingent contract dependent on the happening of future uncertain event within the fixed time, cab be enforced when that event
- A.
Does not happen within the fixed time.
- B.
Becomes impossible before the expiry of fixed time.
- C.
Happens within the fixed time.
- D.
Happens after the expiry of fixed time.
Correct Answer
C. Happens within the fixed time.Explanation
A contingent contract is a contract that is dependent on the occurrence of a future uncertain event. In this case, the contract can be enforced when that event happens within the fixed time. This means that if the event specified in the contract takes place within the agreed-upon timeframe, the contract becomes valid and enforceable. If the event does not happen within the fixed time, the contract may become void or unenforceable. The other options, such as the event becoming impossible before the expiry of the fixed time or happening after the expiry of the fixed time, do not align with the conditions for enforcing a contingent contract.Rate this question:
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- 29.
A contingent contract dependent on the happening of future uncertain event within fixed time, becomes void when such event
- A.
Happens within the fixed event
- B.
Does not happen within the fixed time.
- C.
Becomes impossible before the expiry of fixed time.
- D.
Both (b) and (c).
Correct Answer
D. Both (b) and (c).Explanation
A contingent contract is a contract that depends on the occurrence of a future uncertain event. According to the given options, a contingent contract becomes void when the event does not happen within the fixed time (option b) or when it becomes impossible before the expiry of the fixed time (option c). Therefore, the correct answer is both option b and option c.Rate this question:
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- 30.
A agrees to pay Rs. 10,000 to B if a certain ship return within a year. The ship sinks within the year. In this case, the contact becomes
- A.
Valid
- B.
Void
- C.
Voidable
- D.
Illegal
Correct Answer
B. VoidExplanation
The contract becomes void because the condition upon which the contract was based (the ship returning within a year) did not occur. When a condition precedent to a contract fails to happen, the contract is considered void, meaning it is invalid from the beginning and has no legal effect. Therefore, A is not obligated to pay Rs. 10,000 to B.Rate this question:
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- 31.
A continent contract dependent on the non- happening of future uncertain event within fixed time, can be enforced if such event
- A.
Happens within the fixed time.
- B.
Does not happen within the fixed time.
- C.
Happening becomes impossible before the expiry of fixed time.
- D.
Both (b) and (c).
Correct Answer
D. Both (b) and (c).Explanation
A continent contract dependent on the non-happening of a future uncertain event within a fixed time can be enforced if either the event does not happen within the fixed time or if it becomes impossible for the event to happen before the expiry of the fixed time. In both scenarios, the contract can still be enforced.Rate this question:
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- 32.
A agrees to pay Rs. 10,000 to B if a certain ship does not return within a year. The ship sinks before the expiry of the year. The contract becomes.
- A.
Enforceable
- B.
Non-Enforceable
- C.
Void
- D.
Voidable
Correct Answer
A. EnforceableExplanation
The contract becomes enforceable because both parties had agreed to the terms and conditions, which included A paying Rs. 10,000 to B if the ship does not return within a year. The sinking of the ship before the expiry of the year fulfills the condition mentioned in the contract, making it legally binding and enforceable.Rate this question:
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- 33.
A agrees to pay Rs. 10,000 to B if a certain ship does not return within a year. If the ship returns within the year, then the contract becomes
- A.
Enforceable
- B.
Voidable
- C.
Void
- D.
Illegal
Correct Answer
C. VoidExplanation
The contract becomes void because it is based on a condition that is impossible to fulfill. If the ship returns within the year, the condition of the contract is not met, and therefore the contract becomes void.Rate this question:
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- 34.
A agrees to pay Rs. 10,000 to B if a certain ship does not return within a year. If the ship arrives after one year, then the contract becomes
- A.
Enforceable
- B.
Voidable
- C.
Void
- D.
Illegal
Correct Answer
A. EnforceableExplanation
If the ship arrives after one year, it means that the condition specified in the contract has not been met. However, since A agreed to pay Rs. 10,000 to B if the ship does not return within a year, A is still obligated to fulfill their part of the contract and pay B the agreed amount. Therefore, the contract remains enforceable.Rate this question:
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- 35.
A contingent contract dependent on the happening of impossible event, is _____________
- A.
Void
- B.
Voidable
- C.
Valid
- D.
Illegal
Correct Answer
A. VoidExplanation
A contingent contract dependent on the happening of an impossible event is considered void because it is not legally enforceable. In order for a contract to be valid, the conditions and terms must be possible to fulfill. Since an impossible event cannot occur, the contract becomes void and holds no legal weight.Rate this question:
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- 36.
A agrees to pay Rs. Two lakh to B if he brings on earth a star from sky. This contingent contract is
- A.
Void
- B.
Voidable
- C.
Valid
- D.
Illegal
Correct Answer
A. VoidExplanation
This contingent contract is void because it is impossible for B to bring a star from the sky to the earth. The contract involves a condition that cannot be fulfilled, making it legally unenforceable.Rate this question:
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- 37.
A _____ is one which is dependent on the happening or non-happening of future uncertain event.
- A.
Uncertain contract
- B.
Contingent contract
- C.
Wagering agreement
- D.
Quasi - contract
Correct Answer
B. Contingent contractExplanation
A contingent contract is one which is dependent on the happening or non-happening of a future uncertain event. This means that the contract's performance or obligations are contingent upon the occurrence or non-occurrence of a specific event. In other words, the contract will only be enforced if the uncertain event actually takes place or does not take place. This distinguishes it from other types of contracts, such as uncertain contracts, wagering agreements, and quasi-contracts, which may not necessarily involve the same level of dependence on future uncertain events.Rate this question:
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- 38.
A contingent contract is ________ under the Indian Contract Act.
- A.
Valid
- B.
Void
- C.
Voidable
- D.
Illegal
Correct Answer
A. ValidExplanation
A contingent contract is considered valid under the Indian Contract Act. This means that it meets all the necessary requirements to be legally enforceable. A contingent contract is a contract that depends on the occurrence or non-occurrence of a specific event in the future. As long as the contract is properly formed, has lawful considerations, and the parties involved have the legal capacity to enter into the contract, it will be considered valid.Rate this question:
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- 39.
An uncertain event on which performance of a contingent contract depends ________ an act of the party to the contract.
- A.
Must be
- B.
Must not be
- C.
May be
- D.
Always be
Correct Answer
C. May beExplanation
An uncertain event on which the performance of a contingent contract depends may be an act of the party to the contract. This means that the party involved in the contract has the ability to influence or control the outcome of the uncertain event. However, it is not necessary for the performance of the contract to depend solely on the party's act. Other factors or events beyond the party's control may also play a role in determining the outcome.Rate this question:
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- 40.
A contingent contract becomes____________ when the future uncertain event, on the happening of which the contract is dependent, becomes impossible.
- A.
Valid
- B.
Voidable
- C.
Illegal
- D.
Void
Correct Answer
D. VoidExplanation
A contingent contract becomes void when the future uncertain event, on the happening of which the contract is dependent, becomes impossible. This means that if the event that the contract is based on cannot occur, the contract becomes null and void.Rate this question:
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