One of the Essentials of Contingent Contract is that the Event Must be Certain
A contingency contract, also known as a conditional contract, is a legal agreement that is based on the occurrence of certain events in the future. The contract will only become effective if the event specified in the contract occurs. One of the most important elements of a contingent contract is that the event must be certain.
What is a Certain Event?
A certain event is an event that is bound to happen at some point in the future. It is an event that is not based on chance or speculation and is fully predictable. This is important because it ensures that the contract is not based on guesswork or speculation, which can lead to misunderstandings and disputes.
For example, let`s say that a person wants to rent a car for a week, but they are not sure if they will need it for the full week. They enter into a contingent contract with the car rental company, stating that they will pay for the full week`s rental if they use the car for the entire week. In this case, the event is certain, because if the person uses the car for the entire week, they will have to pay for the full week`s rental.
Why is a Certain Event Important in Contingent Contracts?
A certain event is important in contingent contracts because it ensures that both parties understand the terms of the agreement and what needs to happen for the contract to become effective. Without a certain event, the contract would be based on speculation, and there would be no clear understanding of what needs to happen for the contract to be fulfilled.
In addition, a certain event helps to reduce the risk of disputes between the parties. If the event is not certain, there may be disagreements about whether or not the event occurred or what constitutes the event. This can lead to expensive litigation, and it can also damage the relationship between the parties.
Conclusion
In summary, one of the essentials of contingent contract is that the event must be certain. This ensures that both parties have a clear understanding of the terms of the agreement and reduces the risk of disputes. If you are considering entering into a contingent contract, it is important to make sure that the event is certain and fully understood by both parties. By doing so, you can ensure that your contract is legally binding and enforceable.
