A contingent contract is a contract to do or not to do something if some uncertain event collateral to such contract does or does not happen. The happening of event is uncertain; but if it happens there arises a contract. Eg. Contract of insurance.
A wagering contract means a bet. It is about happening or non-happening of an event with mutual chance of profit or loss.
Both contingent contract and wager depends on happening of future events which must be uncertain at the time of contract.
The distinction between them are as follows:
- In a contingent contract, the event must be collateral to the contract where as the future event determines the case of wager.
- Contingent contract is valid, whereas wagering contract is void in India.
- There is some sort of interest in contingent contract where as in wager it is a mere game of chance.
- Contingent contract solely depends upon future events. Wagering may be also with respect to past events the results of which are unknown to the parties.