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Chapter III - Of Contingent Contracts

Section 31

Section 31: “Contingent contract” defined

A contingent contract turns on an event collateral to the contract.

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Need advice on Section 31?

This article is for general information. Refer to the Indian Contract Act, 1872 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.

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Statutory text

Bare law

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.

Illustration: A contracts to pay B Rs. 10,000 if B’s house is burnt. This is a contingent contract.

Introduction

A contingent contract under Section 31 depends on an event collateral to the contract happening or not happening.

The section defines the category; Sections 32–36 govern when different contingent promises can be enforced or become void.

Key takeaways

1

Collateral event

The condition concerns an event outside the promised act itself.

2

Two outcomes

The promise may depend on the event happening or not happening.

Apply the rule

Identify the promised act and the separate event.

State clearly which outcome triggers the obligation, then apply the relevant enforcement section.

Illustration

The Act’s own example promises payment if a house burns; the fire is the collateral event.

Practical checklist

Do

  • State the collateral event separately from the promised act.
  • Specify whether happening or non-happening triggers performance.

Avoid

  • Do not infer enforceability from the definition alone; check Sections 32–36.

Frequently asked questions

Is every conditional promise contingent?

Apply Section 31’s collateral-event definition to the actual wording and facts.

When can it be enforced?

Section 31 defines the contract; Sections 32–36 supply the applicable enforcement rules.

Need help applying this provision to your situation?

Contact Bizeneed

Last updated 10 October 2026