“CONTINGENT & QUASI CONTRACTS”
2. Types of contract.
3. Contingent contract.
4. Essentials/characteristics of contingent contract.
5. Rules regarding contingent contract.
1. Uncertain event.
2. Impossible event.
3. Performance dependent on non-happening of event.
4. Performance depending on particular individual.
5. Events within fixed time.
6. Dependence on impossible event.
6. Examples of contingent contract.
7. Quasi contract.
• Condition or contractual obligation.
1. Supply of necessaries.
2. Payment by an interested person.
3. Condition of liability under the section.
4. Liability to pay for non-gratuitous.
5. Finder of goods.
6. Right of a finder of goods.
7. Liabilities of a finder of goods.
8. Mistake or coercion.
8. Examples of quasi contract.
‘A contract is an agreement between two or more person to do or not to do some particular thing, such agreement being enforceable at law’.
Formation basis Performance basis Validity basis Special basis
Express contract Executed contract Valid contract Bailment contract
Implied contract Executory contract Void contract Indemnity contract
Quasi contract Unilateral contract Voidable contract Guarantee contract
Bilateral contract Unenforceable contract Agency contract
Illegal contract Contingent contract
‘A contingent contract is a contract to do or not to do something, if some event, collateral to such a contract does or does not happen’.
It means that the promisor in a contract binds himself to perform the contract at the time when an uncertain future event will happen or will not happen. An ordinary contract can become contingent contract, if its performance is made dependent upon the happening or non happening of uncertain event collateral to such contract. The collateral event means connected event. The collateral event is not part of the consideration but in fact, an integral part of the contract.
According to the majority the contingent contract are void when they belong to the class of commutative contracts such as sale and leasing. The reason is that the contracting parties do not know whether the event will occur or not, and whether the contract will be subsequently enforced or not. It is also possible that one of the contracting parties may change his mind when the event occurs. According to Hanafi jurists even the gratuitous contracts are not permissible if made to take effect on the happening of contingency.
• Essential / characteristics of contingent contracts:
1. The performance of the contract depends upon the happening or non happening of an event in...