Contingent contracts (Sections 31-36) are agreements where liability depends on uncertain future events. The contract becomes enforceable only when contingency occurs or becomes impossible. Elements: (1) Essential condition—contingency is material to parties' performance; (2) Uncertainty—event must be uncertain; (3) Conditional nature—liability contingent on event. Types: Event may be act of party, act of third party, or contingency within/outside contract. Performance timing: If contingency is condition precedent, performance due only after contingency occurs. If condition subsequent, contingency discharges liability. Impossible contingencies: If contingency becomes impossible, contingent contract becomes void. Frustration vs. contingent contract: If contingency impossible from inception, contract void; if becomes impossible later, frustration doctrine applies. Case law: Turner v. Goldsmith establishes contingency must be genuine uncertainty. For accountants, contingent liabilities in contracts require careful assessment; understanding when contingencies arise/become impossible affects liability recognition. Exam tip: Identify contingency clearly; determine if condition precedent or subsequent; assess contingency's legal status.