A more thorough explanation:

Contingent debt is a type of debt that is not currently fixed, but may become fixed in the future if a certain event occurs. For example, if a company agrees to pay a bonus to an employee if they meet certain performance goals, that bonus would be considered a contingent debt until the goals are met.

Another example of contingent debt is a loan that is only repayable if a certain event occurs, such as the sale of a property. Until the property is sold, the loan is considered a contingent debt.

Contingent debt is different from other types of debt, such as fixed debt, which has a set repayment schedule and interest rate. With contingent debt, the terms of the debt are not yet determined, and may depend on future events.