What is a contingent contract?

A contingent contract is a type of contract that is only enforced if a certain event, called a contingency, occurs. In Mississippi, a contingent contract must meet certain conditions in order for it to be legally binding. For starters, the required parties must both be competent. This means that they must consent to the agreement without any duress or coercion. Additionally, the contract must be for a legal purpose and must include mutual consideration. A contingent contract also has a specific clause that states what circumstances must take place before it becomes legally binding. This clause is known as the contingency clause. This clause typically specifies that if the stated event or occurrence happens, then the contract will enter into effect. In Mississippi, a contingent contract is considered an executory contract which means that it takes effect when a particular event that is specified in the agreement occurs. This event can be anything that is mutually agreed upon by the parties, such as the payment of money, the delivery of goods, or the passage of a certain amount of time. In summary, a contingent contract is a legal binding agreement between parties in which a specific event must take place in order for it to become enforceable. This type of contract is commonly used in Mississippi and is often referred to as an executory contract.

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