Contingent Contract Simplified – CA Foundation Law

Contingent Contract Simplified - CA Foundation Law

Contingent Contract Simplified – CA Foundation Law

Understanding the Indian Contract Act becomes a lot more fun and memorable when Advocate Rishabh Gaur Sir (IGP’s CA Foundation Faculty) is teaching.

With his sharp logic, crisp examples, and high-energy teaching style, even the most boring topics turn into classroom stories you’ll never forget.

Today’s revision topic is: Contingent Contracts — covered in Sections 31 to 36 of the Indian Contract Act, 1872.

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Section 31 – The “Papa Paribhasha” (Parent Definition)

Rishabh Gaur Sir explains that the main definition of a contingent contract is given in Section 31 — he calls it the “Papa Paribhasha”, meaning the parent definition, from which all other sections flow.

  • Section 31 says:

“A contract to do or not to do something if some event, collateral to such contract, does or does not happen.”

In Sir’s words:

“Agar contract kisi event ke hone ya na hone par tika hua ho, to woh contingent contract hai.”

Keyword: Collateral Event

This event is external, and not the main act of contract — like whether a ship arrives, whether someone plays a match, etc.

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Now Let’s Decode Sections 32 to 36 One by One

Section 32 – On the Happening of an Event

Example by Sir: “Agar ship aa gaya, to main aapko saman bhej dunga.”

  • So, if the ship arrives, the contract must be performed.
  • But if the ship sinks or it becomes impossible, the contract becomes void.

Section 33 – On the Non-Happening of an Event

Here, the contract will be performed only if something does not happen.

Sir’s example: “Agar IPL 2026 nahi hua, to main aapko cricket bat bechunga.”

  • If IPL doesn’t happen ➝ contract goes forward.
  • If IPL happens ➝ contract becomes void.

Section 34 – Depends on Human Conduct

This section talks about contracts based on someone’s action or inaction.

Example: “Agar Dhoni IPL 2026 khelta hai, to main aapko bat 500 rupay ka bech dunga.”

  • If Dhoni confirms he’s playing ➝ contract is on.
  • If he says no ➝ contract is void.

Section 35 – Time-Bound Event Non-Happening

Here, performance depends on something not happening within a fixed time.

Example by Sir: “Agar ship 6 mahine ke andar nahi aaya, to main saman bhej dunga.”

What happens:

  • If ship doesn’t come in 6 months ➝ contract to be performed.
  • If 6 months pass and it’s clear ship won’t come ➝ perform the contract.
  • If ship does come in 6 months ➝ contract is void.

Section 36 – Impossible Events

Sir explains this with a legendary example: “Agar mara hua insan zinda ho gaya, to main apni gadi bech dunga.”

He smiles and says:

“Mare hue zinda nahi hote beta! Toh aisa event possible hi nahi hai.”

Hence, this contract is void from the beginning.

Read Also: Quick Revision of the Indian Contract Act – CA Foundation Prep

Key Features of a Contingent Contract (As Sir Emphasized)

  1. Future event must be uncertain.
  2. Event must be collateral, not the core action.
  3. It should not be controlled by the promisor.
  4. The event shouldn’t be the consideration.

Classic Sir Example: “Pehle dance karke dikhao, phir main law padhaunga”

This is not a contingent contract, because “dance” is the consideration, not a separate event.

Read Also: The Rule of Estoppel Explained with Best Examples

Final Thoughts

The concept of Contingent Contracts might sound technical at first, but when Rishabh Gaur Sir explains it with:

  • Real-life IPL references
  • Sinking ships
  • Dead people coming back to life
    — it becomes impossible to forget.

Whether you’re revising for your CA Foundation exam or just trying to get the concept crystal-clear, this kind of storytelling is gold.

Join Face-to-Face CA Foundation Classes in Delhi:

Revision Tip:

Make a quick table from Sections 31 to 36 with a one-line summary + Sir’s example. Stick it on your wall. 5 minutes of revision = full marks in MCQs!

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