Contracts for the eventuality of doing or not doing anything when a given uncertain event occurs within a specified time frame are cancelled if such an event did not occur after the end of the fixed period or if such an event becomes impossible before the specified period. A conditional contract failed because the authorization (environmental authorization) of the relevant authority was necessary but was not granted. The need for such an authorization was clearly anticipated in the treaty as a precondition for its compliance. On the other hand, if the stock application was conditional on the applicant paying nothing until the company distributed dividends, the contract was not considered a quota contract. A valid contract had already been entered into; only the payment under it has been deferred to comply with a condition. The fact that the authorization is a guarantee for the performance of the contract could not be required until such authorization was obtained. The Madras Supreme Court adopted this approach of characterizing the treaty as a quota. The eventuality is not fulfilled and there is therefore no question of an infringement action. „A conditional contract is a contract that does or does not do something when an event, guarantees for such a contract, occurs or does not occur.“ „Editor`s Note: Quota contracts are contracts that depend on the situation or non-situation of an uncertain event. This paper analyzes the concept of such contracts. it examines the nature of a quota contract and its key issues.
It also distinguishes such a contract from contractual contracts, bets and agreements to perform impossible acts. The document also examines the situations in which a quota contract can be applied and the circumstances in which such a contract becomes invalidated. There is a big difference between bets and quota contracts. The biggest difference is that a conditional contact is a valid contract, but a betting contract is totally invalid. [xi] A betting agreement is a promise to give money or money to the determination or recognition of an uncertain event. [xii] In these, the parties are not interested in the appearance or non-deposit of the event.