Section 130

A contingent contract can be discharged in several ways, including the occurrence or non-occurrence of the contingent event, impossibility of the event, or by agreement between the parties. Section 37 of the Indian Contract Act, 1872, states that the failure of a contingent condition annexed to a contract discharges the condition, but does not necessarily discharge the contract itself. The courts have interpreted this to mean that if the event on which the contract is contingent becomes impossible, the contract is discharged. Additionally, if the parties agree to discharge the contract, it can be done through a separate agreement. For example, if the parties to a contingent contract agree to cancel the contract before the contingent event occurs, the contract is discharged by mutual agreement.