What is a contingent contract?

A contingent contract is a type of agreement between two parties that requires a specific event to occur before it is legally binding. In Kansas, a contingent contract is defined by the Uniform Commercial Code as an agreement in which the parties agree that performance or non-performance of one or more specified obligations shall be contingent upon the happening of a specified event. This kind of contract is often used in situations where there is uncertainty or when the parties cannot agree on a certain outcome. For example, if a company wanted to hire a certain individual, they may use a contingent contract that outlines the terms of employment, but those terms would only be legally binding upon the individual’s acceptance of the offer. Another common application of a contingent contract is in a sales transaction, where payment is contingent upon the satisfaction of certain conditions. If the buyer is satisfied with the goods, then they will pay the full amount, if not, then they can keep the goods and not pay. A key element of a contingent contract is that the specified event must be outside of the control of either of the two parties, and cannot be something that one of the parties can enforce on their own. Both parties must agree to the terms of the contract, and there must be consideration of value in exchange. Additionally, the parties must have the capacity to enter the contract, and the contract must be in compliance with all applicable laws.

Related FAQs

What is a durable power of attorney?
What is the effect of a modification of a contract?
What is the difference between an express and implied contract?
What is a warranty of title?
What is a contract of indemnification?
What is equitable estoppel?
What is an implied covenant of good faith?
What is the Statute of Frauds?
What is the difference between a covenant and a contract?
What is a warranty in a contract?

What is a contingent contract?

Related FAQs

Related Blog Posts