Chapter 1: The Indian Contract Act, 1872

UNIT – 6: CONTINGENT AND QUASI CONTRACTS

After studying this unit, you would be able to understand-

1. Have clarity about the basic characteristics of ‘Contingent contract’ and ‘Quasicontract’ so that you are able to distinguish between a contract of any of these types and a simple contract.

2. Be familiar with the rules relating to enforcement of these in order to gain an understanding of rights and obligations of the parties to the contract.

SUMMARY

1. Contingent Contracts are the contracts, which are conditional on some future event happening or not happening and are enforceable when the future event or loss occurs. (Section 31)

RULES FOR ENFORCEMENT

(a) If it is contingent on the happening of a future event, it is enforceable when the event happens. The contract becomes void if the event becomes impossible, or the event does not happen till the expiry of time fixed for happening of the event.

(b) If it is contingent on a future event not happening. It can be enforced when happening of that event becomes impossible or it does not happen at the expiry of time fixed for non-happening of the event.

(c) If the future event is the act of a living person, any conduct of that person which prevents the event happening within a definite time renders the event impossible.

(d) If the future event is impossible at the time of the contract is made, the contract is void ab initio.

2.. Wagering Contracts are void.

3. Quasi Contracts arise where obligations are created without a contract. The obligations which they give rise to are expressly enacted:

(a) If necessaries are supplied to a person who is incapable of contracting, the supplier is entitled to claim their price from the property of such a person.

(b) A person who is interested in the payment of money which another is bound to pay, and who therefore pays it, is entitled to be reimbursed by the other.

(c) A person who enjoys the benefit of a non-gratuitous act is bound to make compensation.

(d) A person who finds lost property may retain it subject to the responsibility of a bailee.

(e) If money is paid or goods delivered by mistake or under coercion, the recipient must repay or make restoration.