Section 37

Section 37 of the Indian Contract Act, 1872, deals with agreements contingent upon an uncertain future event. It states: "Contingent agreements to do or not to do anything, if a future uncertain event happens, are valid, unless the event is the doing of an act which is impossible, or the happening of an event which is impossible, or the performance of an act which is unlawful, or the happening of an event which is unlawful." This implies that if an agreement is contingent upon an uncertain future event, the agreement is valid, unless the event is impossible, unlawful, or the performance of an act which is unlawful. The section further explains that if the event is uncertain, the agreement is valid, but the parties must wait until the event occurs or fails to occur. The Indian courts have interpreted this section to mean that agreements contingent upon uncertain future events are valid, subject to certain conditions.