Contingent contracts are conditional contracts where performance depends on an uncertain future event. If the event is impossible, the contract is void. Quasi contracts are obligations imposed by law similar to contractual obligations, but in the absence of an actual contract. There are several kinds of quasi contracts, including necessaries supplied to incapable persons, payments by interested persons, liability for non-gratuitous acts, actions for money paid by mistake or coercion, responsibilities of finders of lost goods, and claims for quantum meruit.

1. Contingent and Quasi Contract
Unit I

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. 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. 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. 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. 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. 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. 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. 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