Contingent and Quasi Flashcards
What do you mean by Contingent Contract?
Contingent contract refers to a contract which is performed on the happening or non-happening of a collateral event.
Essentials of Contingent Contract
- The performance of a contract is dependent on the happening or non-happening of an event.
- The event has to be collateral to the contract
- The event must be uncertain
- The event must not be dependent
What is a collateral event
A collateral event is one which is not promised as performance of the contract or is not a consideration in the contract.
What will happen if the event on the happening of which, the contract is performed, becomes impossible
Then the contingent contract becomes void.
Difference between Contingent and Wagering contract
- Meaning
- Validity
- Doctrine of mutuality of loss and gain
- Interest of parties
- Event
Explain the differences
Meaning
- Meaning-
Wagering Contract is a promise of money or money’s worth payable on the happening of an uncertain event.
Contingent contract is a contract which is performed on the happening or non-happening of an event
Explain the differences (wagering and contingent)
Event
Wagering- uncertain event
Contingent- contingent
Explain the differences (wagering and contingent)
Validity
Contingent- valid
Wagering- void
Explain the differences (wagering and contingent)
Interest of parties
Wagering- parties have no interest in event
Contingent- parties have interest in the event
Explain the differences (wagering and contingent)
Doctrine of mutuality of loss and gain
Wagering contract includes the doctrine but not contingent contract.
Rules relating to contingent contracts
- If contract is contingent on happening of impossible event
- If contract is contingent on happening of event
- If contract is contingent on non-happening of an event
- If contract is contingent on happening of event within fixed time
What are Quasi contracts?
Usually, a contract has certain essential elements like capacity to contract, consent etc. However, where law imposes obligations on one party and confers right to other party, it is known as a quasi-contract. It is a relation resembling a contract and is treated as such. It is based on equity, justice and good conscience.
Features of Quasi Contract
- It is generally a right to money.
- It is imposed by law.
- It is a right in personam not a right in realm.
Cases under Quasi-Contracts
FCING ( bekar mein law ne mere par oligation laga diya )
M-Money paid by mistake or under coercion
F-Finder of lost goods
N-Claim for necessaries supplied
P-Payment by an interested person
G-Obligation of person who has enjoyed benefit of non-gratuitous act.
Claim for necessaries supplied to a person who is incapable of contracting.
If a person has supplied necessaries suited to the condition of another person who is incapable of contracting or someone he is bound to support, then the person has a right to be reimbursed for the goods supplied from the property of such an incapable person
Payment by an interested person
If a person who is interested in payment, makes the payment on behalf of someone who was bound to pay, then he is entitled to be reimbursed.
Obligation of a person who has enjoyed the benefit of a non-gratuitous act.
If a person does or delivers something to another non-gratuitously and the other person enjoys the benefit of such a thing then the latter has to pay compensation in order to restore the thing done or delivered.
Responsibility of finder of goods
If a person finds goods not belonging to him and keeps them in his custody, then he is subject to the same rights as that of a bailee.
- Finder has to take care of goods as a man of ordinary prudence
- Finder is not allowed to sell the goods
- If found, finder must restore the goods to the true owner.
Case law for finder of goods
Hollins vs Howler (diamond)
Money paid by mistake or under coercion
If money has been paid to a person by mistake or under coercion i.e. extortion then the person who was paid has to repay the amount.
Meaning of coercion
Committing or threatening to commit any act prohibited by Indian penal code or detaining or threatening to detain any property to the prejudice of any person whatsoever, with the intention of causing other person to enter into agreement.
