Contingent and qusai contracts

quasi contract example

On the other hand, if the ship returns, then the contract is void. This is a contingent contract.

Contingent and qusai contracts

On the other hand, if the ship sinks, then the contract is void. In such cases, the promisor is liable to do or not do something if the event does not happen within the said time. Rule 4 — Contracts Contingent on an Event happening within a Specific Time There can be a contingent contract wherein a party promises to do or not do something if a future uncertain event happens within a fixed time. And if the happening of the event becomes impossible, such contracts become void sec. This is not a contingent contract because in July rains are almost a certainty in Mumbai. In such cases, the promisor is liable to do or not do something if the event does not happen. This contract is enforceable by law if the ship does not return within the fixed time. The insurer is not called into action until the event of the death of the insured happens. The performance of the contract which comes under this category depends on the happening or non- happening of certain uncertain-events.

Peter promises to pay John Rs 5, if the ship named Titanic which leaves on a dangerous mission returns before June 01, If the event takes place, then the contingent contract is void. On the other hand, an ordinary or absolute contract is such where performance is certain or absolute in itself and not dependent on the happening or non-happening of an event.

This rule is specified in Section 35 of the Indian Contract Act, This contract cannot be enforced till Y is alive. Contingent contract to do or not to do anything, if a specified uncertain event happens within a fixed time, becomes void if the event does not happen and the time expires or its happening becomes impossible before the time expires [sec.

Rule 6 — Contracts Contingent on an Impossible Event If a contingent contract is based on the happening or non-happening of an impossible event, then such a contract is void. Peter promises to pay John Rs 50, if the ship named Titanic which leaves on a dangerous mission does not return.

Contingent contract and wagering contract

Rule 4 — Contracts Contingent on an Event happening within a Specific Time There can be a contingent contract wherein a party promises to do or not do something if a future uncertain event happens within a fixed time. If the event is hundred percent sure to happen, and the contract in that case has to be performed any way, such a contract is not called a contingent contract. This contract is enforceable by law if the ship sinks making its return impossible. Peter promises to pay John Rs 5, if the ship named Titanic which leaves on a dangerous mission does not return before June 01, If the contract is dependent on the manner in which a person will act at an unspecified time, the event shall be considered to become impossible when such person does anything which makes it impossible that he should so act within any definite time or otherwise than under further contingencies sec. This contract is void since the happening of the event is impossible. Rule 6 — Contracts Contingent on an Impossible Event If a contingent contract is based on the happening or non-happening of an impossible event, then such a contract is void.

Contingent agreements to do or not to do any thing, if an impossible event happens, are void, whether or not the fact is known to the parties at the time when it is made sec. A loses the case.

Where the performance of a contingent contract depends on the non-happening of a future event, the contract can be enforced if the happening becomes impossible sec.

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Study Material LESSON 3 CONTINGENT CONTRACT AND QUASI CONTRACT