What is a contingent contract?

A contingent contract is a type of contract that is based on a certain event occurring. These events, or conditions, must be met before a contract can be enforced. In Arizona, a contingent contract specifies the actions and terms of the parties involved and can even include a clause dictating the consequences of a breach of the contract. A contingent contract can be used for a variety of different scenarios. For instance, one party might agree to purchase a product from another party if the product meets certain criteria or is of a certain quality. Similarly, a contingent contract might put forth the stipulations of a job position that will only take effect once the applicant passes a background check or drug test. In order for a contingent contract to be valid, there must be an actual agreement between the parties and the terms of that agreement must be legally binding. In Arizona, all contracts must meet the requirements of the Uniform Commercial Code in order to be valid, including agreement to the terms, necessity of consideration, legal capacity of parties, and a lawful object. Additionally, the contract must be in writing, unless the parties involved are dealing with goods valued at more than five hundred dollars. Contingent contracts are an important part of contract law in Arizona, and it is important to understand how they work before entering into any agreement. Understanding the terms and conditions of a contract is the best way to ensure that both parties are clear on the expectations and that the contract is legally binding.

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