Contingent contract Q7


Give your explanation on what is ‘contingent contract’ (4 marks) and comment how contingent contract works in the two scenarios below. 

(a) Ali promises to pay Babu a sum of money if he can grow his area sales by 20% this year. The contract may be enforced if the company can hit the year's target, and becomes void if the company did not even achieve this year's target. 8 marks)

(b) Allan promises to pay Brian a sum of money as compensation if Brian's car is stolen in the journey. The contract may be enforced if really Brian's car got stolen during the journey or disappeared when the journey is completed. (8 marks)

(20 marks)

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