In a contingent contract
a. monitoring is not possible.
b. the principal will be at a disadvantage.
c. the payoffs are dependent upon another variable, such as revenue or profit.
d. the risk neutral party bears the risk.

C. the payoffs are dependent upon another variable, such as revenue or profit.

Explanation:

Contingent contracts are one of the types of contracts in which the promisor offers the responsibility only when the distinct conditions are satisfied. It works on the occurrence or non-occurance of the specific event. It relies on the happening of an unpredictable event. The contingent contract becomes void in the case when the happening of the event grows impossible.

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