What is a contingent contract?

A contingent contract is a legally binding agreement between two or more parties in which a specific event must occur before certain obligations are enforced. In North Carolina, contingent contracts are governed by the state’s contract law. A contingent contract might contain terms and conditions that relate to a specific event, such as a specific future date, or performance of a certain act. For instance, a contingent contract might require the sale of a house on a particular date in order for the contract to be legally enforceable. Another example is a contract between two parties that states that a payment is due only if a specified goal is met by a certain date. In North Carolina, any contract that relies on the occurrence of a certain event has to fulfill several legal requirements, such as being written, signed, and dated by both parties. The contract also has to clearly and unambiguously state the terms of the agreement and the event that must occur for the agreement to be valid. Moreover, the parties involved in the contract must have the legal capacity to enter into the agreement. Contract law in North Carolina requires that both parties fully understand the terms and conditions of the agreement and have the ability to legally act on them. If the specified event does not occur, then the contract is considered unenforceable. A court of law in North Carolina would not be able to enforce the terms of the contract if the event fails to take place.

Related FAQs

What are the remedies for breach of contract?
What is a severability clause?
What is the effect of an ambiguity in a contract?
What is the doctrine of privity?
What is the effect of a modification of a contract?
What is a warranty of title?
What is a voidable contract?
What is anticipatory repudiation?
What is the effect of a breach of contract?
What is the parol evidence rule?

What is a contingent contract?

Related FAQs

Related Blog Posts