What is the difference between a contingency and a contractual situation?

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The terms of a contractual situation are known, whereas the outcome of a contingency and its effects on the company$$s financial status are uncertain.

A contingency relates to a company$$s cash assets, whereas a contractual situation relates to a company$$s fixed assets.

The terms of a contractual situation must be reported in the financial statements, whereas the terms of a contingency do not have to be reported in the financial statements.

A contractual situation is reported as a note on the statement of financial position, whereas a contingency is reported as a note on the statement of owners$$ equity.