How are contingent contracts defined?

Contingent contracts are defined as agreements that depend on specific events occurring. This means that the obligations and rights under the contract are triggered only when certain predetermined conditions are met. For example, a contract might state that a party will only pay a sum of money if a particular event occurs, such as the successful completion of a project or the occurrence of a natural event. If the event does not occur, then the contract may not be enforceable, or the obligations may not arise.

This distinction is crucial because it highlights the nature of contingent contracts as reliant on future events that are uncertain and beyond the control of the parties involved. Understanding this concept helps in identifying various contractual arrangements and their enforceability based on different scenarios and conditions that either must or must not occur. In contrast, other options describe characteristics of contracts that do not align with the definition of contingent contracts. For instance, enforceable agreements, contracts formed under duress, or agreements without conditions describe other types of legal agreements not founded on contingent principles.