Contingent contracts

Contingent contracts usually occur when both negotiating parties fail to reach an agreement. The contract is characterized as “contingent” because the terms are not final and are based on certain events or conditions occurring. (Malhotra, Bazerman 2008, p. 70). Contingent contracts can be likened unto if-then agreements that state which actions under certain conditions will result in specific outcomes (Templar 2012, p. 122).