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Simple English definitions for legal terms
hypothetical contract
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A quick definition of hypothetical contract:
A hypothetical contract is like a pretend agreement between two or more people. It's not a real contract that you can enforce in court, but it helps you imagine what might happen if you did have a real contract. A contract is when people agree to do something and they have to follow through with it or face consequences. Sometimes people write down their agreement on paper, but the paper itself is not the contract, it's just a way to remember what was agreed upon.A more thorough explanation:
A hypothetical contract is a type of conditional contract that is not yet in effect. It is a contract that is based on a hypothetical situation or event that may or may not occur in the future. This type of contract is not legally binding until the hypothetical event or situation actually happens.
For example, if a person promises to pay their friend $100 if it rains tomorrow, this is a hypothetical contract. The contract is only enforceable if it actually rains tomorrow. If it does not rain, then the contract is not legally binding.
Another example of a hypothetical contract is a contract that is based on the outcome of a legal case. For instance, if a person agrees to pay their lawyer a percentage of their settlement if they win their case, this is a hypothetical contract. The contract is only enforceable if the person wins their case and receives a settlement.
In summary, a hypothetical contract is a type of conditional contract that is based on a hypothetical situation or event that may or may not occur in the future. It is not legally binding until the hypothetical event or situation actually happens.