Contingent Contract With Case Law In Clark
Description
Form popularity
FAQ
For a contract to be valid and recognized by the common law, it must include certain elements-- offer, acceptance, consideration, intention to create legal relations, authority and capacity, and certainty. Without these elements, a contract is not legally binding and may not be enforced by the courts.
Contingent means that an event may or may not occur in the future, depending on the fulfillment of some condition that is uncertain. This term is often used in contracts where the event will not take effect until the specified condition occurs.
A contingency clause in a real estate contract is a condition that must be met for the contract to become legally binding. Essentially, it provides a way for the buyer or seller to exit the agreement without penalty if certain conditions are not fulfilled within a specified timeframe.
Example of a Contingency Contract One straightforward example might be a child who agrees with their parent that if they get an A in a particular class, they will get a new bicycle. Of course, the contract may be verbal, and it may be between family members.
A contingent contract agreement means that some condition must be met in order for the contract to be implemented. An indemnification contract agreement (also known as a hold harmless agreement) is a legally binding contract that holds a business harmless for any burden loss or damage done by the person or entity.
In the case of conditional contracts, conditions that need to be fulfilled are certain, i.e., bound to happen, which is not the case with contingent contracts, as such conditions may or may not happen.
There must be a valid contract to do or not to do something. The performance of the contract must be conditional. The said event must be collateral to such contracts and the event should not be at the discretion of the promisor. These are some rules that have to be followed for a contingent contract to be enforceable.
Contingent contracts to do or not to do anything if an uncertain future event happens cannot be enforced by law unless and until that event has happened. If the event becomes impossible, such contracts become void.
R2K § 81: Consideration as Motive or Inducing Cause. (1) The fact that what is bargained for does not of itself induce the making of a promise does not prevent it from being consideration for the promise.
(1) A promise made in recognition of a benefit previously received by the promisor from the promisee is binding to the extent necessary to prevent injustice. (b) to the extent that its value is disproportionate to the benefit.
