Contingent Contract and Quasi Contract

• Masum Billah 2014010000012

• Zahidol Islam Roman 2014010000310

• Tusar Ahmed 2014010000167

• Rafiqul Islam 2013210000308

• Musfiqur Rahman 2014010000275

Contingent contract of introduction

A contract may be either absolute or contingent.

Contingent contract is one where the promisor undertake to

perform the contract which is depended on the happening of

a special future uncared event which is collateral.

All wagering agreement are basically contingent agreement

but all the contingent contract are not wagering agreement.

Quasi contract constructs are the contract presumed by law.

These are the contract which are imposed by law.

Contingent contracts typical types

Contract of insurance

Contract of indemnity

Essentials of a contingent contract

Performance of a contingent of a contingent contract depends upon happening or non-happening of some event.

 Illustration

Nissan promise to pay rs.

10, 00,000 to the bank if his

friend Shasn fails to repay

the loan. Nissan shall be

required to perform only

when event of failure by

Shashank happens.

Contingent event v. will of the promisor

Performance of contingent

contract depends upon

happening or non-happening

of an uncertain event

The event may be an act. and

accordingly contract may be

contingent on act of party to

the promise or of a third part

Illustration

Tushar promises to pay Rafiq Rs.

100000 if Tusar desires- it is no

contract at all.

Tusar promises to pay Rafiq Rs.

100000 if Rafiq goes to Delhi before

next January- it is a contingent

contract since if depends upon act of

Rafiq going to Delhi before next

January , which is an uncertain

event.

Rules Regarding Enforcement of contingent contract

• When contingency is the “happening of an event” – Sec.32

• When contingency is the “non- happening of an event”—Sec.33

• When contingency is the “ future conduct of a living person”—Sec.34

• When contingency is the “happening or non-happening of an event within a fixed time”—Sec.35

When contingency is the happening of an event –

Sec.32

Contract cannot be enforced unless and until the event has happened.

If the event becomes impossible , such contracts become void

Illustration Reuel makes a contract with Rafiq to

buy Rafiq’s house if Tushar dies

before Reuel. This contract cannot be

enforced till the death of Tushar.

A makes a contract with B to sell a

house to B at a specified price, if C , to

whom the horse has been offered,

refuses to buy him. The contract

cannot be enforced by law unless and

until C refuses to buy the house

When contingency is the “non- happening of an event”—Sec.33

Contract can be enforced only when happening of the event becomes impossible

IllustrationA agrees to pay B a sum

of money if a certain ship

does not return. The ship

is sunk. The contract can

be enforced only when

the ship sinks.

When contingency is the “future

conduct of a living person”—Sec.34

The contract becomes void when such person does anything to make the event impossible

IllustrationA agrees to pay B a sum of

money if B marries C. C

marries D. The marriage of B

to C must now be considered

impossible, although it is

possible that D may die and

that C may afterwards marry

B.

When contingency is the “happening of an

event within a fixed time”—Sec.35

Contract becomes void :

__ If, at the expiration of

the time fixed, such event

has not happened.

__ If , before the time

fixed such event becomes

impossible.

IllustrationA promises to pay B a sum of

money if a certain ship returns

without a year. The contract

may be enforced if the ship

returns within the year, and

becomes void if the ship is

burnt within the year.

When contingency is the “non-happening of

an event within a fixed time”—Sec.35

Contract may be enforced:

-When the time fixed has

expired and such event has not

happened.

-When before the time fixed

has expired, it becomes certain

that such event will not

happen.

IllustrationA promises to pay B a sum of money if a certain ship does not return without a year.The contract may be enforced if the ship does not return within the year, or is burnt within the year.

QUASI – Contractof introduction

Quasi contract may be exercised under following five condition-

Necessaries of life supplied to incapable person or to his dependents.

Person pays money on behalf of the one, who is legally bound to pay.

Person enjoying the benefits of no gratuitous act.

Person finds the goods belonging to others.

Person to whom money has been paid or anything delivered by

mistake or under coercion.

Types of Quasi Contract • Claim for necessaries supplied to persons incapable of contracting. Sec—68

• Right to recover money paid for another person. Sec—69

• Obligation of person enjoying benefits act. Sec—70

• Responsibility of finder of goods. Sec—71

Liability for money paid or thing delivered by

mistake or by coercion. Sec—72

Liability for money paid or thing delivered by mistake or by coercion. Sec—72

Claim for Necessaries supplied to

persons incapable of contracting If a person,

_incapable of entering into a

contract, or

_any one whom he is legally bound

to support

_is supplied by another person with

necessaries suited to his condition

in life

_the person who has furnished

such supplies is entitled to be

reimbursed from the property of

such.

Illustration

A supplies B, a minor necessary

book for his studies. A is entitled

to be reimbursed from B’s

property

 

A supplies daily ration to the

wife and children of B, a lunatic. A

is entitled to be reimbursed from

B’s property.

Right to recover money paid for

another person•A person,

Who is interested in the payment of money

Which another is bound by law to pay, and Who therefore pay it, Is entitled to be reimbursed by the other.(Sec.69)

Illustration

A is tenant of house owned

by B. B has not paid municipal

taxes due to corporation and

corporation has ordered

seizure of the property . A pay

the taxes to corporation. A can

recover this money from B.

Obligation of person enjoying benefits act

Where a person,

Lawfully does anything for another

person, or delivers anything to

him , and He does not intend to do

so gratuitously, and Other person

enjoys the benefit thereof , The

latter is bound to compensate the

former in respect of the thing so

done or delivered.(Sec.70)

 

Illustration

A, a tradesman, leaves goods at

B’s house by mistake. B treats the

goods as his own. He is bound to

pay A for them

A saves B’s property from fire. A

is not entitled to compensation

from B , if the circumstances,

show that he intended to act

gratuitously .

Responsibility of finder of goods

A person who finds goods

belonging to another, and takes

them into his custody ,is

subject to the same

responsibility as a Bailee

(Sec.71)

Thus a finder of goods has:

_To take proper care of the goods

as a man of ordinary prudence

would take.

_No right to appropriate the good

Illustration

Rafiq , a shopkeeper finds a

diamond bracelet in his shop and

keep it in an open shelf from

where it goes missing. Rafiq is

liable to compensate the owner

since he has not taken the proper

care which a prudent man would

have taken.

Liability for money paid or thing

delivered by mistacke or by coercion-A person to whom money

has been paid, or anything

delivered,by mistake or

under coercion,

-Must repay or return it.

(sec.72)

Illustration

Rafiq and Tushar jointly owe 200

rupees to Masum, Rafiq alone pays

the amount to Masum and Tushar

not knowing of this fact pays 200

rupees over again to Masum.

Masum bound to repay the

amount to Tushar.

• To conclude I want to say my opinion in this way that contingent contract is a conditional contract on the other hand Quasi contract is like a contract but not exactly a contract .