Contingent contract Performance rules Difference between contingent and wagering agreement Quasi contract, KINDS AND CIRCUMSTANCES OF QUASI CONTRACT LIABILITY FOR NECESSARIES, PAYMENT BY INTERESTED PERSON, OBLIGATION TO PAY FOR NON-GRATUITOUS ACTS, Finder of lost goods Mistake or coercion

1. CONTINGENT AND QUASI
CONTRACT
CHAPTER #7

3. CONTINGENT CONTRACT
CONTINGENT CONTRACT MEAN CONDITIONAL CONTRACT. WHEN IMPOSED AND CONDITION IS
FULFILLED, THE CONTINGENT CONTRACT BECOMES VALID AND THEN PARTIES HAVE TO PERFORM
THEIR OBLIGATIONS. IF IMPOSED AND CONDITION IS NOT FULFILLED, THE CONTINGENT CONTRACT
BECOMES VOID AND THEN IT NEED NOT TO BE PERFORMED. THE PERFORMANCE OF THIS CONTRACT
DEPENDS UPON HAPPENING OR NON HAPPENING OF AN UN CERTAIN EVENT. [SEC. 31]
• EXAMPLE:
IF A MAKES A CONTRACT WITH B TO SELL 1000 BAILS OF COTTON WHICH ARE IN VOYAGE, IF THE
SHIP REACHES THE HARBOR SAFELY.

4. PERFORMANCE RULES:
THE VARIOUS RULES OF PERFORMANCE OF CONTINGENT CONTRACT ARE AS UNDER:
HAPPENING OF AN UNCERTAIN EVENT:
SOMETIMES CONTINGENT CONTRACT DEPENDS UPON HAPPENING OF UNCERTAIN EVENT. THEN IF
SUCH UNCERTAIN EVENT TAKES PLACE, THE CONTINGENT CONTRACT BECOMES VALID AND IF THAT UN
CERTAIN EVENT DOES NOT TAKES PLACE, THE CONTINGENT CONTRACT BECOMES VOID. [SEC. 32]
• EXAMPLE:
ACCORDING TO THE CONTRACT FORMED BETWEEN A AND B, A HAS TO SELL GOODS TO B IF SHIP
REACHES SAFELY. INCASE IF THE SHIP SINKS, THEIR CONTRACT BECOMES VOID.

5. PERFORMANCE RULES: (CONT.)
NON HAPPENING OF AN UNCERTAIN EVENT:
CONTINGENT CONTRACT MAY DEPEND UPON NON HAPPENING OF AN UN CERTAIN EVENT. THEN IF THAT
EVENT DOES NOT HAPPEN, THE CONTRACT IS VALID AND IF THAT EVENT TAKES PLACE, THE CONTRACT
IS VOID. [SEC.33]
• EXAMPLE:
THERE IS A CONTRACT BETWEEN A AND B THAT A HAS TO GIVE A SUM OF MONEY TO B IF THE SHIP
DOES NOT COME BACK. HERE, IF THE SHIP COMES BACK, THE CONTRACT IS VOID.

6. PERFORMANCE RULES: (CONT.)
 DEPENDING ON FUTURE CONDUCT:
IN THIS TYPE, CONTRACT DEPENDS UPON THE FUTURE CONDUCT OF A LIVING
PERSON. [SEC. 34]
• EXAMPLE:
HASSAN ASKS FOR A LOAN FROM HAMZA. HAMZA PLACES A CONDITION IN FRONT
OF HASSAN. THAT IS IF MS. X MARRIES HASSAN IN FUTURE, THEN HE WILL GIVE
LOAN TO HASSAN. AND IF MS. X DOSE NOT MARRY HASSAN, THEN HE WILL NOT
GIVE LOAN TO HASSAN. THUS, HERE THE DECISION OF GIVING THE LOAN IS
DEPENDENT ON THE FUTURE CONDUCT OF MS. X.

7. PERFORMANCE RULES: (CONT.)
 HAPPENING OF AN EVENT WITH IN A FIXED TIME:
IN THIS TYPE, CONTRACT DEPENDS UPON THE HAPPENING OF AN EVENT AND
THE TIME. [SEC. 35(1)]
• EXAMPLE:
A SAILOR ASKS FOR A LOAN FROM A BANK. THE BANK PLACES A CONDITION,
THAT IT WILL GIVE LOAN TO THE SAILOR IF HIS SHIP REACHES TO THE SEAPORT
WITHIN 1 YEAR. AND IF THE SHIP IS UNABLE TO REACH TO THE SEAPORT WITHIN
1 YEAR, IN THAT CASE, THE BANK WILL NOT GIVE LOAN TO THE SAILOR.

8. PERFORMANCE RULES: (CONT.)
 NON-HAPPENING OF EVENT WITH IN A FIXED TIME:
IN THIS TYPE A CONTRACT DEPENDS UPON THE NON-HAPPENING OF AN EVENT AND
THE TIME. [SEC. 35(2)]
• EXAMPLE:
INSURANCE COMPANY STATES THAT IF THE SHIP DOES NOT RETURN TO SEAPORT
WITHIN 1 YEAR, THEN THE SAILOR CAN GET THE INSURANCE CLAIM. MEAN THAT IF
THE SHIP SINKS IN WATER WITHIN 3 MONTHS THAN HE DOES NOT HAVE TO WAIT FOR
1 YEAR FOR THE CLAIM OF INSURANCE. AND THE MONEY CAN BE CLAIMED FROM
THE INSURANCE COMPANY AFTER 3 MONTHS BECAUSE IT IS IMPOSSIBLE FOR THE
SHIP TO RETURN.

9. PERFORMANCE RULES: (CONT.)
HAPPENING OF IMPOSSIBLE EVENT:
CONTINGENT AGREEMENTS TO DO OR NOT TO DO ANYTHING IF AN IMPOSSIBLE
EVENT HAPPENS, ARE VOID.
IT MEANS THAT IF THE PERFORMANCE OF A CONTRACT IS MADE DEPENDENT ON AN
EVENT WHICH IS ALREADY IMPOSSIBLE. SUCH TYPE OF AGREEMENT IS VOID FROM
THE VERY BEGINNING. [SEC. 36]
• EXAMPLE:
A AGREES TO PAY RS.1000 TO B, IF HE CAN RUN 500 KMHR. THE AGREEMENT IS
VOID.

10. DIFFERENCE BETWEEN CONTINGENT AND
WAGERING AGREEMENT

12. QUASI CONTRACT
• MEANING:
AN OBLIGATION OF ONE PARTY TO ANOTHER IMPOSED BY LAW INDEPENDENTLY
AGREEMENT BETWEEN PARTIES.
 COURTS CREATE QUASI CONTRACT TO PROTECT THE UNJUST ENRICHMENT OF
THE PARTIES IN DISPUTE OVER PAYMENTS OF GOODS AND SERVICES.
 QUASI CONTRACT ARISES SOME SPECIAL CIRCUMSTANCES. IT IS AN OBLIGATION
IMPOSED BY LAW UPON A PERSON FOR THE BENEFIT OF ANOTHER EVEN IN THE
ABSENCE OF CONTRACT.
 QUASI CONTRACT IS BASED UPON PRINCIPLE OF EQUITY AND JUSTICE.
 THEY ARE ALSO CALLED CONSTRUCTIVE CONTRACT.

13. EXAMPLES:
1. A FINDS LOST GOODS OF B. A IS BOUND LEGALLY TO RETURN THE GOODS
BACK TO B.
2. IF YOU TAKE YOUR CAR TO THE CAR WASH AND ASK FOR A WASH. BUT
THEY ALSO END UP CHANGING YOUR OIL. YOU CANNOT BE FORCED TO
PAY FOR THAT ADDED BENEFIT.

14. KINDS AND CIRCUMSTANCES OF QUASI
CONTRACT

15.  LIABILITY FOR NECESSARIES:
WHEN ONE PARTY SUPPLIES NECESSARIES TO THE OTHER (WITHOUT REQUEST), A QUASI CONTRACT
COMES INTO FORCE
“IF NECESSARIES ARE PROVIDED TO A PERSON WHO IS INCOMPETENT TO CONTRACT OR TO
SOMEONE WHOM HE IS LEGALLY BOUND TO SUPPORT, THE SUPPLIER IS ENTITLED TO BE
REIMBURSED FROM PROPERTY OF SUCH INCAPABLE PERSON”. [SEC. 68]
• EXAMPLES:
C SUPPLIES NECESSARIES OF LIFE TO THE WIFE AND CHILDREN OF AN INSANE PERSON B. C IS
ENTITLED TO BE RECOVERED FROM B’S PROPERTY.

16.  PAYMENT BY INTERESTED PERSON:
THIS KIND OF QUASI CONTRACT IS FORMED WHEN ONE PERSON MAKES THE PAYMENT OF MONEY
WHICH ANOTHER IS BOUND TO PAY BY LAW.
IN THIS CASE PERSON WHO MAKES THE PAYMENT IS ENTITLED TO BE REIMBURSED BY THE ONE FOR
WHOM THE PAYMENT IS MADE. [SEC. 69]
• EXAMPLE:
NASIR HAD KEPT HIS CAR IN TASHFEEN’S GARAGE AS THERE WAS RENOVATION GOING ON IN HIS
HOUSE. TASHFEEN TOOK NASIR’S CAR WITHOUT HIS CONSENT AND HIT THE CAR AGAINST A TREE. HE
LEFT THE CAR AT NEAREST MOTOR STATION FOR REPAIR AND INFORMED NASIR. NASIR WENT TO THE
MOTOR STATION AND MADE THE PAYMENT FOR THE REPAIR. IN THIS CASE NASIR IS ENTITLED TO BE
REIMBURSED BY TASHFEEN.

17.  OBLIGATION TO PAY FOR NON-
GRATUITOUS ACTS:
WHEN A PERSON LAWFULLY DOES ANYTHING FOR ANOTHER PERSON OR DELIVERS ANYTHING TO
HIM, NOT INTENDING TO DO SO GRATUITOUSLY, AND SUCH OTHER PERSON ENJOYS THE BENEFIT
THEREOF, THE LATTER IS BOUND TO MAKE COMPENSATION TO THE FORMER IN RESPECT OF, OR TO
RESTORE, THE THINGS SO DONE OR DELIVERED. [SEC. 70]
• EXAMPLE:
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.

18.  FINDER OF LOST GOODS:
A PERSON WHO FINDS GOODS BELONGING TO ANOTHER AND TAKES
THEM INTO HIS CUSTODY, IS SUBJECT TO THE SAME RESPONSIBILITY
AS BAILEE. [SEC. 71]

19.  DUTIES OF FINDER OF LOST GOODS:
1. TRY TO FIND OUT THE TRUE OWNER OF GOODS.
2. NOT TO USE GOOD FOR HIS OWN PURPOSE.
3. MUST RETURN GOODS TO TRUE OWNER.
4. TAKE REASONABLE CARE OF GOODS.
5. NOT TO MIX GOODS WITH HIS OWN GOODS.

20.  RIGHTS OF FINDER OF LOST GOODS
1. RIGHT OF LIEN
2. RIGHT TO SUE FOR REWARD
3. RIGHT OF SALE:
IF THE GOODS ARE PERISHABLE IN NATURE
IF THE CHARGES ARE 2/3RD VALUE OF THE GOODS AND OWNER REFUSES
TO PAY.
IF THE OWNER CANNOT BE FOUND.

21.  MISTAKE OR COERCION:
A PERSON TO WHOM MONEY HAS BEEN PAID, OR ANYTHING DELIVERED BY MISTAKE
OR UNDER COERCION, MUST REPAY OR RETURN IT TO THE PERSON WHO PAID IT BY
MISTAKE. [SEC. 72]
• EXAMPLE:
A PAID SOME MONEY TO B BY MISTAKE. A CAN RECOVER HIS MONEY FROM B.