Quasi Contract

A quasi contract is an obligation that is imposed by the courts to avoid

injustice or unjust enrichment.

Acceptable alternative ways of describing a quasi contract are:

• An implied-in-law contract imposed by the courts to prevent injustice.

• A special form of contract that lacks mutual assent of the parties but which
is imposed on the parties by the courts to avoid injustice.

Notes on Quasi Contract:

An example of a quasi contract is:

• Joe, a painter, mistakenly paints Helen's house, with her knowledge and
Helen refuses to pay since she had never made a contract with Joe. The
court will create a contract between them in this circumstance and Helen
will have to pay.

Note, however, that if Helen had no knowledge of Joe doing the job, there would
be no contract of any kind.

A quasi contract is not really a contract at all in the normal meaning of a contract.
It is really an obligation imposed on a party to make things fair.

Related Concept:

A concept related to this term is:

• Promissory estoppel.
Promissory estoppel is similar except that in promissory estoppel there
actually was a promise made but this promise would otherwise be
unenforceable (like a promise of a gift in which there is no reliance.) In
quasi contracts NO promise at all was made.

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

to such contract, does or does not happen (Sec 31)

Illustrations:
A contracts to pay B Rs 10,000 if B’s house is burnt. This is a contingent contact.

Meaning of Contingent Contract

A contract may be unconditional or absolute on the one hand and conditional or

contingent on the other. The absolute or unconditional contract is one without any
reservations or conditions and is to be performed under any event. On the other hand,
conditional or contingent contract is one in which a promise is conditional and the
contract shall be performed only on the happening or not happening of some future
uncertain event. The event must be collateral to the contract. The condition may be
precedent or subsequent.

A collateral event is defined as one which is neither a performance directly promised as

part of the contract, nor the whole of the consideration for a promise. The event, therefore
independent of the contract and does not form part of consideration to it.

The performance of such a contract depends on contingency and such contingency is

uncertain. The test of determining whether the contract is contingent or not, is
uncertainty. If contingency is certain it is not a contingent contract.

Essential characteristics of a Contingent Contract:

a) There should be existence of a contingency; happening or non-happening of some

event in future.
b) Contingency must be uncertain.
c) The event must be collateral, for example incidental to the contact.

Rules Regarding Contingent Contracts:

Enforcements of contracts contingent on happening of a future uncertain event: (Sec32)

Contingent contracts to do or not to do anything if an uncertain future event happens

cannot be enforced by law unless and until that event has happened. If the event becomes
impossible such contracts become void.

Illustrations:

(a) A makes a contract with B to buy B’s houses if A survives C. This contract cannot be
enforced by law unless and until C dies in A’s life time.
(b) A makes a contract with B to sell a house to B at a specified price, if C to whom the
house has been offered refuses to buy. The contract cannot be enforced by law unless and
until C refuses to buy the house.
(c) A contracts to pay B a sum of money when B marries C. C dies without being married
to B. The contact becomes void.
Contracts so contingent become void when the event becomes impossible. Performance
of such contract becomes impossible as the event on which the contract was contingent
becomes impossible for example, imposition of government restrictions.

Enforcement of contracts on the non-happening of a future uncertain event: (Sec 33)

Contingent contracts to do or not to do anything if an uncertain future event does not
happen can be enforced when the happening of the event becomes impossible and not
before.

Illustration:

A agrees to pay B a sum of money if a certain ship does not return. The ship is sunk. The
contract can be enforced when the ship sinks.

Contracts contingent on future conduct of a living person: (Sec 34)

If future event which a contract is contingent is the way in which a person will act at an
unspecified time, the event shall be considered to become impossible when such person
does anything which renders it impossible that he should so act within any definite time,
or otherwise than under future contingencies.

Illustration:

A agrees to pay B a sum of money if B marries C, C marries D. The marriage of B to C

must now be considered impossible although it is possible that D may die and that C may
afterwards marry B.

Contracts contingent on a specified event happening within a fixed time: (Sec 33(1))
Contingent contracts to do 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.

Illustrations:

A promises to pay B a sum of money if a certain ship returns within a year. The contracts
may be enforced if the ship returns within the year, and becomes void if the ship is burnt
within the year.