Contingent And Quasi Contracts

Group Members

NAME:

• Arslan Ahmed

Reg. No

2961

Contingent Contract: (Sec.31)

“A contingent contract is a contract to do or not to do something, if some event , collateral to such contract

does or does not happen”

Essential / Characteristics of

Contingent Contract

1. The performance of the contract depends upon the happening or non-happening of an event in future

2. The event must be uncertain3. The uncertain event must be

collateral or incidental to the contract

Rules Regarding Contingent Contract

• Uncertain event (Sec.32): Contingent contract to do or not

to do anything, if an uncertain future event happens, it cannot be enforced by law unless and until that event has happened. If event become impossible, such contract become void

• Impossible event (Sec.33): Contingent contracts to or not to do

anything, if an uncertain future event does not happen can be enforced when the happening of that event becomes impossible, and not before

Cont’d

• Performance dependent on non-happening of event (Sec.34):

When performance depends on non-happening of an event, the contract shall not be performed unless the happening of that event becomes impossible

• Performance dependent on particular individual (Sec.35(1)):

Contingent contracts to or not to do anything, if a specified uncertain event happens within a fixed time become void, if at the expiration of the time fixed,

such event has not happened, or if before the time

fixed, Such event becomes impossible

Cont’d

• Event within fixed time(Sec.35(2)): Contingent contract to do or not to do

anything, if a specified uncertain event does not happen within fixed time, may be enforced by law when the time fixed has expired and such event has not happened, or before the time fixed has , if it becomes certain that such event will not happen

• Dependence on impossible event (Sec.36): Contingent contract to do or not to do

anything if impossible event happens, are void whether the impossibility of event of the event is known or

not to be parties to the agreement at the time when it is made

Wagering Contract

“A wager is a bet; a contract by which two parties or more agree that a

certain sum of money, or other thing, shall be paid or delivered to one of

them, on the happening or not happening of an uncertain event”

Difference between Contingent & Wagering

AgreementsMutual Promise:• A wagering agreement consists of mutual promises each of which are

conditional on the happening or non-happening of a certain event.• A contingent contract may not consist of the mutual promise. It may be

said that all wagers are contingent contracts but all contingent contracts are not wagers.

• For example, insurance contracts, contracts of indemnity and guarantee are contingent contracts but not wagers.

Validity:• A wagering agreement is absolutely void. It is illegal in Pakistan and in

some other countries. But a contingent contract is a valid contract.

Cont’d

Performance:• In a wagering agreement, neither party intends to

perform the contract, but only to deal in differences.• This is not so in contingent contractsInterest in the Subject Matter:• In wagering agreement, the parties to the agreement

have no other interests in the subject matter of the agreement, except for the stake.

• But in a contingent contract, parties do have some other interest in the subject matter.

• They are interested in the occurrence or non-occurrence of the event.

Cont’d

Future Event:• In a wagering agreement the future event is the sole

determining factor of the contract while in a contingent contract, the future event is merely collateral or incidental to the contract.

Natural:• All contingent contracts are not of a wagering

nature, because all the contingent contracts are not void.• All wagering agreements are also contingent

contracts because they are dependent on uncertain event.

Quasi Contract or Implied Contract

Conditions or Contractual Obligation:

• Supply of Necessaries (Sec.68)• Payment By An Interested Person

(Sec.69)• Liability To Pay For Non-Gratuitous Acts

(sec.70)• Finder Of Goods (Sec.11)• Mistake Or Coercion (Sec.72)

Conditions or Contractual Obligation:

Supply of Necessaries: “where necessaries are supplied to a person who

is incompetent to contract or to someone who is legally bound to support, the supplier is entitled

to recover the price from the property of incompetent person”

The Following Points Must Be Noted:1. Only the property of incompetent person is

liable, personally he is free from every liability2. There must be necessaries, not luxuries3. Necessaries should be supplied only that

incompetent person or to someone whom he is legally bound to support

4. Property of incompetent person is liable to pay only a reasonable price and not the contract price

Payment By An Interested Person (Sec.69):

“A person who is interested in the payment of money which another person is

bound by law to pay and who therefore pays, is entitled to be reimbursed by the

other”

Conditions of Liability under section:

1. The person himself should not be bound to pay2. The interest the which person the person seek to

protect must however be legally recognized3. The dependent should have been bound by law to pay the money

Liability to Pay For Non-Gratuitous Acts (Sec.70)

“Where a person lawfully does anything for another person, not

intending to do so gratuitously, and such other person enjoys the benefit

thereof”Liability under section are:1. The person doing the act should not

have intended to do it gratuitously2. The service should have been

rendered lawfully3. The person for whom the act is done

must have enjoyed the benefit of it

Finder Of Goods (Sec.71)

• “A person who finds goods belonging to an0other and takes

them into his custody is subject to the same responsibility as a bailee. The duties and liabilities of finder

are the same as bailee”(Sec.71)

Rights Of Finder Of Goods:(Sec.169)

Liabilities Of Finder Of Goods:

• Try to search the real owner of goods• Should deliver the Goods to owner

without any delay• Must take proper care of goods• Should not mix the goods with his

own goods

Mistake Or Coercion (Sec.72)

“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 or under

coercion”

QUESTIONS & ANSWERS

Can You Guys Do That :P