CONTINGENCY AND QUASI CONTRACT Essential elements of contingency contract Examples of Contingency Contract Enforcing contingency contract Essential Elements of Contingency Contract Wagering vs Contingency contract Quasi Contract Types of Quasi Contract Examples of Quasi Contract Conclusion of Contingency Contract Conclusion of Quasi Contract

1. KALINGA INSTITUTE OF INDUSTRIAL TECHNOLOGY
BHUBHANESWAR
Legal Isssues and Requirment in Engineering
Presentation on
CONTINGENCY AND QUASI CONTRACT
Date of Presentation :- 07th SEP 2020
Group Member :- Guided by:-
Saurabh Kumar (1601061) Koushik Roy (1801604) Prof. (Dr.) PK Acharya Sir
Priyanshu Agarwal (1701231) Sujon Mondal (1801606) School of Civil Engineering
Supratim Datta (1801601) Saini Dey (1801607) KIIT University Bhubhaneswar
Biplab Kumar Sharma (1801602) Shivam Kumar (1801608)
Sayan Sarkar (1801603) Shubham Singh (1801609)
Kumud Sahu (1801623)

2. 01
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Contingency Contract
Essential elements of contingency contract
Enforcing contingency contract
Wagering vs Contingency contract
Quasi Contract
Types of Quasi Contract
03
06
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3. Section 31 of the Indian Contract Act, 1872 defines the term ‘Contingency
Contract’ as follows:
'A contingency contract is a contract to do or not to do something, if some
event, collateral to such contract, does or does not happen'.
“ “
What is Contingency Contract
1701231

4. Examples of Contingency Contract
1- Peter enters into a contract with John and promises to deliver 5 television sets to
him. John promises to pay him Rs 75,000 upon delivery. This is NOT a contingent
contract since John’s obligation depends on the event which is a part of the
contract (delivery of TV sets) and not a collateral event.
2- Peter enters into a contract with John and promises to deliver 5 television sets to
him if Brazil wins the FIFA World Cup provided John pays him Rs 25,000 before the
World Cup kicks-off. This is a contingent contract since Peter’s obligation arises
only when Brazil wins the Cup which is a collateral event.
1801604

5. Essential Elements of Contingency Contract
1- Depends on happening or non-happening of a certain event
The contract is contingent on the happening or the non-happening of a
certain event. These said events can be precedent or subsequent, this
will not matter. Say for example Peter promises to pay John Rs 5,000 if
the Rajdhani Express reaches Delhi on time. This is a contingent event.
2- The event is collateral to the contract
It is important that the event is not a part of the contract. It cannot be
the performance promised or a consideration for a promise.
1801606

6. 3- The event should not be a mere will of the promisor -
The event cannot be a wish of the promisor. Say for
example Peter promises to pay John Rs 5,000 if Argentina
wins the FIFA World Cup provided he wants to. This is
NOT a contingent contract. Actually, this is not a
contract at all.
Peter promises to pay John Rs 50,000 if he leaves
Mumbai for Dubai on August 30, 2018. This is a
contingent contract. Going to Dubai can be within John’s
will but is not merely his will.
Essential Elements of Contingency Contract
1801602

7. 4 - The event should be uncertain
Essential Elements of Contingency Contract
contd..
If the event is sure to happen, then the contract is due
to be performed. This is not a contingent contract. The
event should be uncertain.
Peter promises to pay John Rs 500 if it rains in Mumbai in
the month of July 2018. This is not a contingent contract
because in July rains are almost a certainty in Mumbai.
1801607

8. Enforcement of contracts contingency on
an event happening
Contingency contracts to do or nor to do anything in an uncertain future event happens,
cannot be enforced by law unless and until that event has happened.
If the event becomes impossible, such contracts become void.
Illustrations:-
(a) A makes a contract with B to buy B's horse if A survives C. This contract cannot be
enforced by the law unless and until B dies in A's lifetime.
(b) A makes a contract with B to sell a horse to B at a specified price, if C, to whom the
horse has been offered, refuse to buy him. The contract cannot be enforced by law unless
and until C refuses to buy the horse.
(c) A contracts to pay B a sum of money when B marries C. C dies without
being married to B. The contract becomes void.
1801608

9. Wagering V/S Contingency contract
Wagering Contract
 Wagering agreements are void in nature.
 Reciprocal Promises are definite.
 Wagering agreements are a game of chance.
 Future event is the sole determining factor.
 Under Wagering agreement, future uncertain
event is the key element of the agreement.
Contingency Contract
 Contingent Contract is a valid contract in nature.
 In Contingent Contract, there may or may not be
reciprocal promises.
 Contingent agreements are not a game of chance.
 The future event is only collateral.
 Under Contingent Contract, future uncertain events
are collateral to the main purpose of the contract.
1801601

10. “ “
Quasi Contract
A quasi contract is a contract that is created by the court when no such
official contract exists between the parties, and there is a dispute with
regard to payment for goods or services provided. Courts create quasi
contracts to prevent a party from being unjustly enriched, or from
benefitting from the situation when he does not deserve to do so.
1601061

11. The core principles behind a Quasi Contract are justice, equity and
good conscience. It is based on the maxim: “No man must grow rich
out of another persons’ loss.”
Quasi Contract contd…
1801603

12. 1- Quasi contracts outline the obligation of one party to another when the latter
is in possession of the original party's property. These parties may not
necessarily have had a prior agreement with one another. The agreement is
imposed by law through a judge as a remedy when Person A owes something to
Person B because they come into possession of Person A's property indirectly or
by mistake. The contract becomes enforceable if Person B decides to keep the
item in question without paying for it.
2- Because the agreement is constructed in a court of law, it is legally
enforceable, so neither party has to agree to it. The purpose of the quasi
contract is to render a fair outcome in a situation where one party has an
advantage over another. The defendant—the party who acquired the
property—must pay restitution to the plaintiff who is the wronged party to
cover the value of the item.
Quasi Contract in detail
1801609

13. 1- A plumber accidentally installs a sprinkler system in the lawn of the
wrong house and the man knew it in whose house it was being
installed.
In this case the man would be held liable to pay.
2- In the above mentioned example if the man had no knowledge of the
sprinkle being installed he would not be held liable.
Examples of Quasi Contract
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14. 01
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Every contingency contract is a
Contract primarily. Like any
other contract, it is also a
contract to door not to do
something.
It is not, however, an absolute and
unconditional one, without any
reservations or conditions, which
is to be performed under any
event.
Its performance is dependent on
some event’s happening or not
happening- the contingency.
It is proved by the research that
contracts and quasi contracts are far
different.
They are not contracts but are
obligations that the law imposes upon
someone to prevent undue advantage
to one person at the cost of another.
The Indian contract act, 1872 covers
these types of obligations under the
chapter v under the title ‘of certain
relations resembling those created by
contract’ but the act does not include
the term ‘quasi contract’.
Contingency Contract Quasi Contract
Conclusions
1801601

15. THANK YOU