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<h1>Understanding Contingent Contracts: Section 31 of Indian Contract Act Explains Conditional Agreements Based on Future Events</h1> A contingent contract, as defined under Section 31 of the Indian Contract Act, 1872, is an agreement to perform or abstain from performing a particular action based on the occurrence or non-occurrence of an uncertain future event that is collateral to the contract. For example, an agreement where one party promises to pay a sum of money if a specific event, like the burning of a house, occurs, is considered a contingent contract.