What is a contingent contract?

A contingent contract is a type of contract under Virginia law that sets out the obligations of two or more parties, but only becomes legally binding if certain conditions are met. For example, an estate sale may require a contingent contract in order to be legally binding. The contract would state that the estate must be sold to the highest bidder and the sale will only be finalized if the bidder can prove the money is available. Contingent contracts are also sometimes used in employment agreements, required for a business to hire a certain employee. The contract may state that the employee will only be hired if they can meet certain qualifications or pass a criminal background check. In Virginia, any agreement that states that all parties agree to the terms only after a certain condition is met is considered a contingent contract. The agreement must contain detailed information about the condition that must be met in order for the contract to be binding. Additionally, any contingent contracts must be in writing. In the case of any dispute, the written record of the agreement is the best evidence. Overall, a contingent contract is an agreement between parties in Virginia that only becomes legally binding if certain conditions are met. They are often used in estate sales and employment agreements, and must be in writing in order to be enforceable.

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