A contract whose performance is contingent upon the occurrence of a specified future event.
A contingent contract is a legal agreement that becomes enforceable only upon the occurrence or non-occurrence of a specific event. This form of agreement is commonly used in various business transactions, including mergers and acquisitions.
An earn-out agreement is a contingent contract used in M&A transactions where the purchaser pays an initial amount at acquisition and agrees to pay additional future sums contingent on the target company meeting specified performance targets.
