3 Contingent Contract

1. Concept: a contract whose performance contingent on a future uncertain event'shappening or not happening (the insurance contract — the paradigm; the conditional sale; the first-flush harvest contracts of the villages); the collateral-event's essential character (the event not the promisor's own will — the promise's performance conditional, not the promise itself);2. Contingent contract vs. wagering agreement (the exam table):Contingent contractWagering agreementDefinitionPerformance conditional on an uncertain collateral eventMutual promises on an uncertain event's outcome, each staked on his own predictionInterestThe parties have a real interest in the event beyond the betThe parties' only interest the winning-and-losing itselfValidityValid (enforceable when the event happens/fails)Void (the gambling bar — the Code's void- agreement list)ExampleInsurance; a sale if the ship arrivesPure bet on the ship's arrival (each party's only interest the stake)1. Nepalese provisions: the Code's contingent-contract articles (the conditional promises' enforceability rules — the event's occurrence or failure; the impossible-event contingency void); the wagering-and-gambling prohibitions (the voidness + the Betting-and-Gaming legislation's criminal face); the insurance statutes as the regulated contingent contracts (the Insurance Act 2049's frame).