Contingent and quasi contract


Published on

Contingent and Quasi Contract
(Indian Contract Act)

Published in: Business, Economy & Finance
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Contingent and quasi contract

  1. 1. Contingent and Quasi Contract Unit I
  2. 2. Contingent Contract• When the performance of a contract is not immediately due but it becomes so only after the happening or non-happening of some contingency (ie some uncertain event) it is known as Contingent Contract. It is a conditional contract. Eg. Contract of Insurance.
  3. 3. Rules regarding performance of Contingency Contract• The happening of a future uncertain event – If impossible, contract is void• The non-happening of a future uncertain event – Until event is impossible, contract cannot be enforced• The happening of a future uncertain event within fixed time• The non-happening of a future uncertain event within fixed time• Impossible events - void contract
  4. 4. Quasi Contracts• Obligations imposed by law similar to those which are created by contract in the absence of any contract is called Quasi Contract.
  5. 5. Kinds of Quasi Contracts• Necessaries supplied to person incapable of contracting – Reimbursed from the property• Payment by an Interested person – A person who is interested in the payment of money in which another is bound by law to pay and who therefore pays it, is entitled to be reimbursed by the other. – Essentials • Should be for protection of one’s interest • Payment should not be voluntary • Payment must be such as the other party was bound by law to pay
  6. 6. Kinds of Quasi Contracts• Liability for Non-Gratuitous Act – Conditions • Thing must be done lawfully • It must have been done by a person not intending to act gratuitously • The person for whom the act is done must have enjoyed the benefit of the act• Action for money paid on thing delivered by mistake or under coercion – The person must repay or return it
  7. 7. Kinds of Quasi Contracts• Responsibility of Finder of Lost goods – Take care of the goods as a man of ordinary prudence would under similar circumstances – Trace the true owner – Finder of goods can sell if • Things is in danger of perishing or losing the greater part of its value • Owner cannot be found out • Owner refuses to pay lawful charges of the finder • Lawful charges of finder amounts to two thirds of the value of the thing found
  8. 8. Kinds of Quasi Contracts• Claim for Quantum Meruit – As much as the party doing the service has deserved – In case of void agreement or contract that becomes void (any person who has received any advantage under such agreement / contract is bound to restore or make compensation) – In case of non-gratuitous act : obligation to pay – In case of act preventing the completion of contract : compensation for work done
  9. 9. Kinds of Quasi Contracts• Claim for Quantum Meruit – In case of divisible contract • If the party not at default has enjoyed benefits of part performance compensation for work done has to be given – In case of indivisible contract • If contract is indivisible • If contract is for lump-sum • If contract is completely performed • But performed badly • Lump-sum can be received less deduction for bad work