DEEKSHITH KUMAR PUTTUR

CONTINGENT CONTRACTS A contract may be (a) an absolute contract, or (b) a contingent contract. An absolute contract' is one in which the promisor binds himself to performance in any event without any conditions. "Contingent" means that which is dependent on something else. A 'contingent contract' is a contract to do or not to do something, if some event, collateral to such contract, does or does not happen (Sec. 31).  Where, for example, goods are sent on approval, the contract is contingent contract depending on the act of the buyer to accept or reject the goods. A contingent contract is a contract, the performance of which is dependent upon, the happening or non-happening of an Certain event, collateral to such contract. That is why, a contingent contract is also known as a conditional contract. Any ordinary contract can be transformed into a contingent contract, if the performance is made dependent upon the happening on non-happening of an uncertain event, coll

WAGERING AGREEMENT OR WAGER (Sec. 30) A wager is an agreement between two parties by which one promises to pay money or money's worth on the happening of some uncertain event in consideration of the other party's promise to pay if the event does not happen. Wagering agreement is also called as betting agreement. It is a game of chance in which winning or losing is dependent on specified uncertain event. This agreement is void and not enforceable at law. Essentials of a Wagering Agreement 1. Promise to pay money or money's worth. The wagering agreement must contain a promise to pay money or money's worth. 2. Uncertain event. The promise must be conditional on an event happening or not happening. A wager generally contemplates a future event, but it may also relate to a past event provided the parties are not aware of its result or the time of its happening. 3. Each party must stand to win or lose. Upon the determination of the contemplated event, each party should stand

Lawful Object A contract must not only be based upon mutual assent of competent parties but must also have a lawful object. If the object of an agreement is the performance of an unlawful act, the agreement is unenforceable. Sec. 23 declares that the object' or the 'consideration' of an agreement is not lawful in certain cases. The words 'object' end 'consideration' in Sec. 23 are not used synonymously. They are distinct in meaning. The word object' means purpose or design. In some cases, consideration for an agreement may be lawful but the purpose for which the agreement is entered into may be unlawful. In such cases the agreement is void. As such both the object and the consideration of an agreement must be lawful, otherwise the agreement is void. WHEN CONSIDERATION OR OBJECT IS UNLAWFUL (Sec. 23) The consideration or object of an agreement is unlawful 1. If it is forbidden by law. If the object or the consideration of an agreement is the doing of an a