What is a contingent contract?

A contingent contract is a type of agreement that is only binding if a certain event or condition comes to pass. This type of contract is used in Nebraska and all over the United States when parties want to agree on certain terms and conditions, but are unsure if the conditions can be achieved. For example, a business may enter into a contract with an employee, where they agree to pay the employee a certain amount of money upon the completion of a specific task. However, the contract is contingent upon the successful completion of the task. If the task fails to be completed, then the contract is not binding. Contingent contracts can also be drawn up to cover the sale of a home or property. In this case, the contract may state that the buyer will only purchase the home if certain inspections or appraisals show the house to be in good condition. If these conditions are not met, the contract is void and no purchase is made. In Nebraska, all parties to a contingent contract must agree on the terms and conditions of the agreement, and any disputes must be determined by a judge. If the contract is broken by one party, the other party may be entitled to damages or other compensation. It’s important to consult a lawyer to ensure that all parties have a solid understanding of the agreement and that all involved are protected.

Related FAQs

What is consideration in a contract?
What is a material breach of contract?
What is the termination of a contract?
What is the common law of contracts?
What is a promissory note?
What are the common types of remedies available?
What are the legal remedies for a breach of contract?
What is the standard of care in a contract?
What is a performance bond?
What is a severability clause?

What is a contingent contract?

Related FAQs

Related Blog Posts