RAJIV GANDHI NATIONAL UNIVERSITY OF LAW

“AN EXAMINATION OF CONTINGENT AND QUASI-CONTRACTS”

Contract Project: 1st Semester

SUBMITTED BY Natasha Mittal

SECTION B
ROLL NO. 23117
SUBMITTED TO Dr. Sangeeta Taak, Assistant Professor of
Law
 AN EXAMINATION OF CONTINGENT AND QUASI-CONTRACTS

TABLE OF CONTENT

TABLE OF CONTENT ...........................................................................................................................2

DECLARATION .....................................................................................................................................3

SUPERVISOR’S CERTIFICATE ..............................................................................................................4

ACKNOWLEDGMENT ...........................................................................................................................5

1. INTRODUCTION ...............................................................................................................................6

1.1. Brief Introduction to the Indian Contract Act, 1872. ................................................................6

1.2 Objective and Scope .....................................................................................................................7

1.3 Definitions and Signification .......................................................................................................7

2. CONTINGENT AND QUASI-CONTRACT: AN OVERVIEW AS UNDER THE ICA ........9

2.1 Essential Conditions .....................................................................................................................9

2.2 Enforceablity ..............................................................................................................................10

3. HISTORICAL CONTEXT AND COMPARATIVE LEGAL ANALYSIS..........................17

CONCLUSION ................................................................................................................................19

BIBLIOGRAPHY .................................................................................................................................20

_______________________________________________________________________________
Page 2 of 21
 AN EXAMINATION OF CONTINGENT AND QUASI-CONTRACTS

DECLARATION

I hereby declare that the project report entitled “AN EXAMINATION OF CONTINGENT AND
QUASI-CONTRACTS” submitted to Rajiv Gandhi National University of Law, Punjab, Patiala
is an outcome of my original work carried out under the supervision of Dr. Sangeeta Taak & Dr.
Vikram Karuna. The project is entirely based on my own research work and has not been submitted
elsewhere. All the ideas and references have been duly acknowledged. To the best of my
understanding, the project is free from plagiarism.

Natasha Mittal

Rajiv Gandhi National University of Law, Patiala

_______________________________________________________________________________
Page 3 of 21
 AN EXAMINATION OF CONTINGENT AND QUASI-CONTRACTS

SUPERVISOR’S CERTIFICATE

This is to certify that the project assignment entitled “AN EXAMINATION OF CONTINGENT
AND QUASI-CONTRACTS” submitted to Rajiv Gandhi National University of Law, is a research
work carried out by NATASHA MITTAL under my supervision and guidance for further evaluation.

Dr. Sangeeta Taak

(Asst. Professor of Law)

Dr. Vikram Karuna

(Asst. Professor of Law)

Rajiv Gandhi National University of Law, Punjab,

Patiala

09/10/2022

_______________________________________________________________________________
Page 4 of 21
 AN EXAMINATION OF CONTINGENT AND QUASI-CONTRACTS

ACKNOWLEDGMENT

On completion of this project, it is my present privilege to acknowledge my heartfelt gratitude

and indebtedness towards my teachers for their valuable suggestions. Their precious guidance
and unrelenting support kept me on the right path throughout the whole project and very much
thankful to my teachers in-charge and project coordinators for giving me this relevant and
knowledgeable topic.

I wish to express my sincere gratitude to my teacher Assistant Professor DR. SANGEETA TAAK
and Assistant Professor DR. VIKRAM KARUNA for their guidance and encouragement in
carrying out this project work.

I also wish to express my thanks to my batch mates my friends for their ideas because of which
this project became more captivating. I am also thankful to my institution library for providing a
broad range of books to learn more.

Natasha Mittal

_______________________________________________________________________________
Page 5 of 21
 AN EXAMINATION OF CONTINGENT AND QUASI-CONTRACTS
__________________________________________________________________________________________

1. INTRODUCTION

1.1. Brief Introduction to the Indian Contract Act, 1872.

A contract is one of the most essential things for a legal relationship to exist between two or
more parties. For a contract to exist there must be proposal, acceptance, consideration from
both the sides of the party.

According to section 2(h) of Indian Contract Act, 1872; “An agreement enforceable by law is
a contract.”1 It means that agreements which are made by free will, lawful consideration and
there must be competency to contract. A agrees to buy a tennis racket from B (the shopkeeper)
for Rs 10000, can be said to be a contract between A and B. Here, A has accepted the proposal
of B and the amount of Rs 10000 can be a consideration for B, the shopkeeper while the Tennis
racket can be said to be a consideration for A.

Contracts can be further bifurcated into two categories i.e. Absolute Contract and Conditional
Contract. In the case of absolute contract, the terms and conditions of the contract are
independent of each other and the absence of one of the conditions doesn’t affect the
enforceability of the other contracts. On the contrary, in case of conditional contracts, the
absence of any of the conditions fulfilled violates the whole of the contracts. Here the
happening and non-happening of the contracts depends on happening of all the clauses.
Example: - A contract to pay Rs 50000, if he indulges in an accident in a near future. Here, the
contract’s performance is entirely dependent upon the occurrence or non-occurrence of the
accident.

1. Contract Formation: The Act describes the prerequisites for a legally binding agreement,
with particular emphasis on the necessity of free assent, lawful consideration, and lawful
object. If these conditions are not met, any agreement is considered null and invalid.

2. Components of a Valid Contract: A legally binding agreement must contain specific

components, such as an offer, acceptance, purpose to establish legal connections, and term
clarity. The Act explains and clarifies each of these components in great detail.

1
‘The Indian Contract Act 1872, §2(h) (1872), Indian Kanoon <https://indiankanoon.org/doc/1890444/> accessed
8 October 2022.
___________________________________________________________________________
Page 6 of 21
 AN EXAMINATION OF CONTINGENT AND QUASI-CONTRACTS
__________________________________________________________________________________________

The Act presents the notions of contingent and quasi-contracts, which address circumstances
in which contractual responsibilities emerge as a result of unanticipated occurrences or the
lack of a clear agreement.

1.2 Objective and Scope

• Examining quasi-contracts and contingent contracts in the context of the Indian

Contract Act, 1872 is the main goal of this project. By exploring the nuances, tenets,
and legal ramifications of these particular contract kinds, the project seeks to clarify
the theoretical underpinnings.
• Examine the legal bases of quasi-contracts and contingent contracts in the larger
framework of the Indian Contract Act to gain an understanding of their principles.
• Examine the developments and historical progression of these ideas in Indian contract
law.
• Enlarging Differences: Discuss the distinctions between quasi-contracts and
contingent contracts, outlining the particular features that set each apart. Consider the
effects these differences have on the parties' rights, obligations, and ability to enforce
them.
• Critical Analysis of Contingent Contracts: Look into the terms and situations that
apply to contingent contracts.
• Comprehensive Analysis of Quasi-Contracts
• Real-World Uses

1.3 Definitions and Signification

A contingent contract, as defined under the Indian Contract Act, 1872, is a contract in which
the performance of the contractual obligations is contingent upon the happening or non-
happening of a specific event, resulting in uncertainty. The existence of the contract is subject
to a future event, and the obligations become enforceable only if the specified condition is
satisfied. If the event does not occur, the contract may become void or voidable, depending
on the nature of the contingency.

A quasi contract is a legal concept used by the courts to create an obligation resembling a
contractual obligation when there is no actual contract between the parties. It arises to prevent

___________________________________________________________________________
Page 7 of 21
 AN EXAMINATION OF CONTINGENT AND QUASI-CONTRACTS
__________________________________________________________________________________________

one party from being unjustly enriched at the expense of another, even in the absence of a
formal agreement.

Significance of Contingent Contracts:

Uncertain Situations: Contingent contracts are particularly useful in situations where there is
uncertainty about future events. They provide a framework for parties to enter into
agreements with a clear understanding that certain conditions must be met for the contract to
be binding.

Risk Management: These contracts are often used as a tool for managing risk. Parties can
agree to certain terms, but the contractual obligations are contingent on external factors. For
example, insurance contracts are a common form of contingent agreements where the
payment is contingent upon the occurrence of an insured event.

Flexibility: Contingent contracts offer flexibility in negotiations. Parties can structure their
agreements to accommodate various scenarios, and the contract only becomes binding under
specific conditions. This flexibility can be valuable in dynamic and uncertain business
environments.

Significance of Quasi-Contracts:

Preventing Unjust Enrichment: The primary purpose of quasi contracts is to prevent one party
from unfairly benefiting at the expense of another. If a person has received a benefit without a
legal justification, the law may impose an obligation to avoid unjust enrichment.

Equitable Remedies: Quasi contracts are often associated with equitable remedies, such as
restitution. Courts may order the unjustly enriched party to return the value of the benefit
received or compensate the other party for the value of the benefit.

Filling Gaps in Contracts: Quasi contracts are a legal tool to fill gaps in situations where there
is no formal contract, but one party has derived a benefit from the actions of another. It
provides a mechanism for the courts to intervene and impose an obligation to ensure fairness.

___________________________________________________________________________
Page 8 of 21
 AN EXAMINATION OF CONTINGENT AND QUASI-CONTRACTS
__________________________________________________________________________________________

2. CONTINGENT AND QUASI-CONTRACT: AN OVERVIEW AS UNDER THE ICA

2.1 Essential Conditions

Contingent contracts have some conditions which needs to be necessary fulfilled. The essential
elements of contingent contracts are defined below:

• COLLATERAL TO CONTRACT: - If we take the literal meaning of the word

collateral, it means something pledged as security for loan repayment, to be forfeited
in the event of a default. The event on which the contract is contingent cannot be a
part of the contract or a performance promised in exchange for consideration. For
example, if X and Y enter into a contract for the delivery of goods in the near future
and X pays Y a certain amount in consideration for the delivery of goods the contract
is not contingent because A's obligation arises from an event that is not collateral, but
a part of the contract.2
• CONDITIONAL: - Section 32 and Section 33 of Indian Contract Act, 1872 lays
down the procedure for the conditional approach to be applied. The basis of
contingent contract depends on the condition that it must be conditional. In other
words, it means that it totally depends upon happening and non-happening of the
contract. If the event has happened or performed, only then it becomes necessary to
fulfill the conditions of the contract and vice versa. If the Contract becomes
impossible or cannot be performed such contract can be said to be void. Illustration: A
agrees to marry B only on the condition that B’s parents provide him a brand-new car.
B’s parents died in an accident before providing him the car. The event has become
impossible to be performed. Hence, the contract has become void.
• UNCERTAINTY: A contract to be contingent must have some kind of uncertainty. In
other words, it must not be certain. Illustration: A contract of life insurance cannot be
said to be a contingent contract as death is bound to happen. So there is no uncertainty
present in the above case.
• TIME FRAME: It is also essential that the event occurs within that particular time
frame. According to section 35 of Indian Contract Act, 1872; the event must happen
within a specified time frame and if it doesn’t take place, the contract becomes void.

2
Yamini Jain, 'Different dimensions of contingent contracts' (Ipleaders, 16 September 2021)
<https://blog.ipleaders.in/different-dimensions-contingent-contracts/> accessed 7 October 2022.
___________________________________________________________________________
Page 9 of 21
 AN EXAMINATION OF CONTINGENT AND QUASI-CONTRACTS
__________________________________________________________________________________________

Illustration: X promises to pay Z Rs 20000 if there is any accident with his car in the
next one year. But if the accident happens after one year, then A won’t be liable to pay
for the accident.
• IMPOSSIBILITY OF AN EVENT: Contingent contract depends on the condition
that only the events which have a certain (not definite) possibility to occur can be
termed as contingent contract. Section 36 of ICA, 1872 lays down that when the
contingent contracts which are impossible to perform can be termed as a void
agreement. Illustration: B promises to buy shares of a particular company if the price
of petrol touches Rs. 200 within the next 3 months. Such an event is impossible.
Hence the agreement is void.
• INDEPENDENT: The contingent contract should not depend upon the promisor at
all. It should completely be uncertain. Example: A promises B to pay him Rs 1000, if
he completes his homework, before 15 October, 2022. Such a contract cannot be
called contingent, as it is completely at the discretion of B, the promisor.

2.2 Enforceablity

The enforceability of a contingent contract is provided under Section 32-35 of the Indian
Contract Act, 1872 and is dependent on the happening or non-happening of a particular event
with or without a fixed time period. Under the following circumstances, the contingent contract
can be enforced:

• Section 32 of Indian Contract Act, 1872 establishes a dual principle. A contract can’t be
performed unless the event has happened3. In Rojasara Ramjibhai Dahyabhai v Jani
Narottamdas Lallubhai, it was held that specific performance can only be performed
only on the fulfilment of the essential condition. It was also held that, if the event has
become impossible, then the contract will become void.4

• According to Section 33 of Indian Contract Act, 1872, If an uncertain future event does
not happen in the future, it can be enforced when the performance of that event has

3
Yamini Jain, 'Different dimensions of contingent contracts' (Ipleaders, 16 September 2021)
<https://blog.ipleaders.in/different-dimensions-contingent-contracts/> accessed 7 October 2022.
4
Rojasara Ramjibhai Dahyabhai v Jani Narottamdas Lallubhai (Casemine)
<www.casemine.com/judgement/in/5609ac24e4b014971140e27f> accessed 8 October 2022.
___________________________________________________________________________
Page 10 of 21
 AN EXAMINATION OF CONTINGENT AND QUASI-CONTRACTS
__________________________________________________________________________________________

become impossible. If the event happens, then the contingent contract is said to be
void.5

• According to Section 34 of Indian Contract Act, 1872; If a contract is totally dependent

on how the contract will be performed in the future, the event can’t be performed and
will be termed as impossible, if the person does anything which makes it impossible to
perform. Example: A agrees to marry B on the condition that B’s father pay him a
certain amount of money. But the event can become impossible on account of the
bride’s death.

In the case of Frost v. Knight6, the defendant promised to marry the plaintiff on the death
of the defendant’s father. The father was still living and he broke his promise and the
plaintiff immediately brought an action against him. It was held by the court that the event
had become impossible as the defendant had already married someone and he can’t marry
the plaintiff as had already married. Moreover, the plaintiff has the right to sue the plaintiff
for the breach of contract and he was entitled to get damages.

• Some, contingent contracts are based on the condition that the event must happen within
a fixed time. But if the time for the performance of the event has lapsed, the contract
can be termed as impossible to perform. Example: Vehicle Insurance for 1 year. If
anything happens to the vehicle before 1 year, it can be enforced but if the time has
passed 1 year, then the contract cannot be enforced.

• Contingent Contracts to do an impossible act are void from the very beginning. These
contracts are void ab inito. Contract to pay B Rs 10000, if he revives a dead body.

Indian Contract Act is primarily based on the principles of English Common Law. Section 68-
72 under the Chapter V “Of Certain Relations Resembling Those Created By Contract”
mentions the situation which resemble the quasi-contractual obligations.

5
(Indian Kanoon) <https://indiankanoon.org/doc/463976/> accessed 8 October 2022.
6
Frost v Knight (1872) LR 7 Exch 111; 41 LJ Ex 78.
___________________________________________________________________________
Page 11 of 21
 AN EXAMINATION OF CONTINGENT AND QUASI-CONTRACTS
__________________________________________________________________________________________

Section 68: Claim for necessaries supplied to person incapable of contracting, or on his
account. – “If a person, incapable of entering into a contract, or any one whom he is legally
bound to support, is supplied by another person with necessaries suited to his condition in life,
the person who has furnished such supplies is entitled to be reimbursed from the property of
such incapable person.”7

For e.g. A lunatic person who is incompetent to enter into any contract is supplied with suitable
necessities like food, clothes etc, the person supplying the necessities is entitled to recover the
costs even though no express contract exists between them.

The word “necessaries” has not specifically been defined in the Act but it is implied to mean
the necessities without which a person cannot reasonably exist.

Section 69: Reimbursement of person paying money due by another, in payment of which
he is interested.—"A person who is interested in the payment of money which another is bound
by law to pay, and who therefore pays it, is entitled to be reimbursed by the other.”8

Conditions of Liability

● The plaintiff should be interested in making the payment. The interest which the
plaintiff seeks to protect must, of course, be legally recognisable. His honest belief that
he has an interest to protect is enough.9 It was held in Munni Bibi v Triloki Nath10. It
was further reiterated by the Supreme Court in Transworld Shipping Services (I) (P)
Ltd v Owners11.
● It is necessary that the plaintiff himself should not be bound to pay. He should only be
interested in making the payment in order to protect his own interest. Where a person
is jointly liable with others to pay, a payment by him of the others’ share would not give
him a right of recovery under this section.12 (held in Gopinath v Raghuvansh Kumar
Singh.)

7
The Indian Contract Act, 1872, s. 68.
8
The Indian Contract Act, 1872, s. 69.
9
Avtar Singh, Contract Act & Specific Relief (Eastern Book Company, Lucknow, 2020).
10
Munni Bibi v Triloki Nath, ILR (1932) 54 All 140.
11
Transworld Shipping Services (I) (P) Ltd v Owners, 1984 SCC OnLine Mad 285 : (1986) 99 LW 517.
12
Gopinath v Raghuvansh Kumar Singh, AIR 1949 Pat 522.

___________________________________________________________________________
Page 12 of 21
 AN EXAMINATION OF CONTINGENT AND QUASI-CONTRACTS
__________________________________________________________________________________________

● The defendant should be “bound by law” to pay the money.13“Bound by law” meant
that the defendant is bound by law or by contract. (held in Rasappa Pillai v Mitta
Zemindar Doraisami Reddiar.)
● The plaintiff should have made the payment to another person and not to himself.
“Thus, where a certain Government was the tenant of a land and paid to itself out of the
rent due to the landlord the arrears of land revenue due to itself, the Government could
not recover from the landlord. It was a transfer if money from one head to another
within the Government and ‘not payment to another’ and though it was done to save
the land from being sold in execution, it did not come within the principle of the
section” 14(Secy of State for India v Fernandes)

Section 70: Obligation of person enjoying benefit of non-gratuitous act.—Where a person

lawfully does anything for another person, or delivers anything to him, not intending to do so
gratuitously, and such other person enjoys the benefit thereof, the latter is bound to make
compensation to the former in respect of, or to restore, the thing so done or delivered. 15

Conditions of Liability

As per State of W.B. v B.K. Mondal & Sons16, following three conditions must be satisfied
before invoking this section:

1. A person should do or deliver something to an individual in lawful manner

2. The person doing or delivering the said thing he must not intend to act gratuitously
3. The person at the receiving end must enjoy the benefit of the non-gratuitous act.

13
Rasappa Pillai v Mitta Zemindar Doraisami Reddiar, AIR 1925 Mad 1041.
14
Secy of State for India v Fernandes, ILR (1906-08) 30 Mad 375.
15
The Indian Contract Act, 1872, s. 70.

16
State of W.B. v B.K. Mondal & Sons AIR 1962 SC 779: 1962 Supp (1) SCR 876.
___________________________________________________________________________
Page 13 of 21
 AN EXAMINATION OF CONTINGENT AND QUASI-CONTRACTS
__________________________________________________________________________________________

Section 71: Responsibility of finder of goods.—A person who finds goods belonging to
another, and takes them into his custody, is subject to the same responsibility as a bailee.17

A bailee is simply a keeper of the goods who is responsible for returning them to the original
owner or dispose them in the manner that the original owner desires. The bailee has certain
temporary rights and obligations as the 'possessor' or 'custodian' of the goods.

Duties of the finder of goods

● The finder has a duty to take reasonable care.

● He/she has a duty not to use the goods for his personal purposes.
● He/she has a duty not to mix the found goods with his own goods.
● He/she has a duty to make reasonable efforts to find the actual owner of the goods.18

Rights of the finder of goods

1. Right to Lien- Finder of the goods has right to keep the goods until he is
compensated for costs incurred while locating the real owner of the goods.
2. Right to Sue- If the owner of goods has announced any reward for the finder, the
finder has the right to sue for such reward or retain the goods until he/she is
reimbursed.
3. Right to Sell- The finder may sell the goods in certain conditions, like
● The owner is still unknown after every effort to locate him/her.
● The goods can go bad if not used within a time period.
● The owner refuses to compensate or reward (if applicable) the finder.
● If the lawful charges cost two-thirds or more compared to the value of goods.

17
The Indian Contract Act, 1872, s. 71.

18
'Quasi-Contractual Obligations' (Ipleaders) https://blog.ipleaders.in/quasi-contractual-obligations/.

___________________________________________________________________________
Page 14 of 21
 AN EXAMINATION OF CONTINGENT AND QUASI-CONTRACTS
__________________________________________________________________________________________

Section 72: Liability of person to whom money is paid, or thing delivered, by mistake or
under coercion.—A person to whom money has been paid, or anything delivered, by mistake
or under coercion, must repay or return it.

The Supreme Court of India clarified, “the section in terms does not make any distinction
between a mistake of law or a mistake of fact. The term ‘mistake’ has been used without any
qualification or limitation whatever…”19.

The use of the word “coercion” in this section is in a broad sense and not as defined in Section
15 of the Indian Contract Act, 1872. Thus money paid under circumstantial pressure, like as
prevention of getting evicted due to non-payment required costs by the owner, where the party
is a tenant, may be recovered even if this does not fulfil the conditions of “coercion” as listed
in the Section 15 of the act.

Mafatlal Industries Ltd. v. UOI

Facts of the Case: The petitioner is a textile mill manufacturing “blended yarn”. Blended yarn
was captively consumed. The mills paid excise duty on blended yarn produced for captive
consumption prior to March 16/17, 1972, under Tariff Item 18 or 18A of the First Schedule to
the Excise Act. The Gujarat High Court ruled in a petition that the imposition of an excise duty
on blended yarn prior to March 16/17, 1972, under tariff Item 18 or 18A, was illegal. The High
Court ordered that the excise duty levied for the three years preceding to the filing of the
petition, which was filed on 6.5.1972, be refunded. The appellant and other mill-owners
claimed that they were not obligated to pay excise tax because of the Court's pronouncement
of the law, and that they had paid the excise duty on the same up to that date by mistake of law.
They demanded a refund of the excise duty they had paid up until March 16/17, 1972, claiming
that the duty had been unlawfully collected from them. The excise duty claimed was not
refunded by the Revenue. Suits were filed by the appellant and others. The suits were dismissed
by the trial court. By ruling dated 6.4.1984, the High Court of Gujarat granted the Union of
India's appeals against the aforementioned decrees made by the trial court and set aside the
decrees passed by the trial courts. It was decided that in order to successfully sustain a claim
of restitution based on Section 72 of the Contract Act, the person seeking restitution must
demonstrate “loss or injury” to him, and that in the cases before them, the excise duty paid on
blended yarn was ultimately passed on to the buyer of the fabric, and thus the claim for

19
STO v Kanhaiya Lal Mukund Lal Saraf, AIR 1959 SC 135: 1959 SCR 1350.

___________________________________________________________________________
Page 15 of 21
 AN EXAMINATION OF CONTINGENT AND QUASI-CONTRACTS
__________________________________________________________________________________________

restitution would not be valid. In other words, if an assessee has "passed on" the duty paid by
or realized from him, he has experienced no loss or damage, and the restitution action is
unsustainable. The case was taken to the Supreme Court, where it was eventually submitted to
a nine-judge bench of the Apex Court.

___________________________________________________________________________
Page 16 of 21
 AN EXAMINATION OF CONTINGENT AND QUASI-CONTRACTS
__________________________________________________________________________________________

3. HISTORICAL CONTEXT AND COMPARATIVE LEGAL ANALYSIS

The evolution of contract law and the legal systems' tenets of equity provide the historical
background for contingent and quasi-contracts. This is a quick synopsis of their background:

Contracts with Conditions:

Ancient legal systems, such as Roman law and common law, are the sources of the idea of
contingent contracts. The concept of a "condition" or "contingency" was acknowledged by
Roman law as a factor that could influence a contract's enforceability and legality. Through
judicial rulings and the writings of legal academics, the common law concepts pertaining to
contingent contracts developed in England.

Contingent contracts were defined by common law in medieval England as agreements that
were subject to the occurrence or non-occurrence of a particular event. The enforceability of
such contracts was contingent on the fulfillment or non-fulfillment of the specified condition.
Over time, legal principles surrounding contingent contracts were refined and codified in
statutes and legal treatises.

Quasi-Contracts: The concept of quasi-contracts, also known as contracts implied in law, has
its origins in Roman law and equitable principles. Roman law recognized the concept of unjust
enrichment, which formed the basis for the development of quasi-contractual obligations. In
cases where one person was unjustly enriched at the expense of another, Roman law allowed
for restitution or compensation to prevent unfairness. Equity, a system of principles developed
alongside common law, played a significant role in the development of quasi-contracts.
Equitable doctrines aimed to address situations where strict application of contract law
principles led to unjust outcomes. Quasi-contracts were used as a means to prevent one party
from being unjustly enriched at the expense of another, even in the absence of a formal contract.
The historical development of contingent and quasi contracts has been influenced by legal
systems across different cultures and time periods. Over the centuries, legal scholars, jurists,
and courts have contributed to shaping the principles and understanding of these contractual
concepts, adapting them to the changing needs and values of society. It's important to note that
the historical context may vary across different legal systems and jurisdictions, as the
development of contract law and equitable principles differs among countries and regions.

Different legal systems from different cultures and eras have influenced the historical evolution
of quasi-contracts and dependent contracts. The ideas and understanding of these contractual
___________________________________________________________________________
Page 17 of 21
 AN EXAMINATION OF CONTINGENT AND QUASI-CONTRACTS
__________________________________________________________________________________________

notions have evolved over the ages as a result of the work of legal academics, jurists, and
courts, who have tailored them to the shifting requirements and ideals of society.

It's crucial to remember that, just as contract law and equitable principles have developed
differently in various nations and areas, the historical background may also differ between legal
systems and jurisdictions.

Comparative Legal Analysis between Contingent and Quasi-Contract

Nature and Formation:

Contingent Contracts: Contingent contracts are created when two parties concur that their
obligations will arise whether or not a certain future event occurs. The occurrence or non-
occurrence of an event determines the parties' rights and duties.

Quasi-Contracts: On the other hand, parties do not mutually agree to construct quasi-contracts.
The law has imposed them in order to stop undue enrichment. When one party has unfairly
benefited at the expense of another and the law intervenes to ensure justice by demanding
restoration or compensation, quasi-contractual obligations result.

Legal Foundation:

Contingent Contracts: The fundamental ideas of contract law, which center on the parties'
mutual consent and agreement, serve as the legal foundation for contingent contracts.

Quasi-Contracts: The idea of preventing unjust enrichment and equitable principles serve as
the foundation for quasi-contracts. When one party unfairly gains an advantage at the expense
of another, they provide a remedy.

___________________________________________________________________________
Page 18 of 21
 AN EXAMINATION OF CONTINGENT AND QUASI-CONTRACTS
__________________________________________________________________________________________

CONCLUSION

This investigation on quasi-contracts and contingent contracts under the Indian Contract Act,
1872, has been a trip through the many levels of legal structures that influence contractual
relationships in India. The goals and parameters defined here provide a framework for a
thorough investigation of quasi-contracts and contingent contracts, with a focus on their critical
influence on the dynamics of Indian trade. It was an introduction to a deeper investigation into
the legal environment governing contracts. The next chapter served as a compass, pointing us
toward the nuances of quasi-contracts and contingent contracts. It explored the fundamentals,
breaking down the procedures for enforcement and exposing the obligations and rights of each
party. These legal concepts were given life by the inclusion of significant case laws, which
provided useful context for how they might be applied within the complex framework of Indian
jurisprudence. This chapter demonstrated how quasi-contracts and contingent contracts are
dynamic legal tools that may be tailored to the ever-changing needs of persons and businesses
involved in business transactions. The historical context and comparative legal analysis section
added to our understanding in a number of ways. First, by following amendments and historical
influences, we were able to understand how contingent and quasi contracts adapt to changes in
society and the economy. Secondly, by comparing Indian legal frameworks with those of other
countries, the comparative legal analysis highlighted the unique characteristics of Indian legal
systems while also illuminating universally shared principles. All in all, these layers of
investigation combined to create a comprehensive understanding of contingent and quasi
contracts in the Indian legal milieu. Third, in addition to the theoretical analysis of legal
constructs, this project explored the governance of these contracts. Finally, this project clarifies
the complex relationship between quasi-contracts and contingent contracts, providing insights
that are applicable to both legal research and real-world commercial situations. The study goes
beyond conventional legal discourse by extending an invitation to stakeholders to participate
in a dynamic discussion about the legal precepts that govern contracts in India. After this
investigation, we have a better understanding of the complex interactions between law and
business, and we see contingent and quasi-contracts as essential tools that help to define the
boundaries of the Indian economic environment.

___________________________________________________________________________
Page 19 of 21
 AN EXAMINATION OF CONTINGENT AND QUASI-CONTRACTS
__________________________________________________________________________________________

BIBLIOGRAPHY

CASES

o Rojasara Ramjibhai Dahyabhai v Jani Narottamdas Lallubhai.

o Frost v. Knight.
o STO v Kanhaiya Lal Mukund Lal Saraf.
o Rojasara Ramjibhai Dahyabhai v Jani Narottamdas Lallubhai.
o Secy of State for India v Fernandes.
o State of W.B. v B.K. Mondal & Sons.
o Munni Bibi v Triloki Nath.
o Transworld Shipping Services (I) (P) Ltd v Owners.
o Gopinath v Raghuvansh Kumar Singh.
o Rasappa Pillai v Mitta Zemindar Doraisami Reddiar.

STATUTES

o The Indian Contract Act, 1872, s. 10.

o The Indian Contract Act, 1872, s. 32.
o The Indian Contract Act, 1872, s. 33.
o The Indian Contract Act, 1872, s. 34.
o The Indian Contract Act, 1872, s. 35.
o The Indian Contract Act, 1872, s. 68.
o The Indian Contract Act, 1872, s. 69.
o The Indian Contract Act, 1872, s. 70.
o The Indian Contract Act, 1872, s. 71.
o The Indian Contract Act, 1872, s. 72.

OTHER AUTHORITIES

o https://www.investopedia.com/terms/d/disgorgement.asp.
o https://blog.ipleaders.in/quasi-contractual-obligations/
o https://indiankanoon.org/doc/463976/
o www.casemine.com/judgement/in/5609ac24e4b014971140e27f
o https://blog.ipleaders.in/different-dimensions-contingent-contracts/
o https://indiankanoon.org/doc/463976/
o https://indiankanoon.org/doc/1890444/
___________________________________________________________________________
Page 20 of 21
 AN EXAMINATION OF CONTINGENT AND QUASI-CONTRACTS
__________________________________________________________________________________________

o Contingent Contracts under Indian Contract Law (ipleaders.in)

JOURNAL

o Saxena, I. C. “SOCIAL JUSTICE IN QUASI-CONTRACT.” Journal of the Indian

Law Institute, vol. 32, no. 4, Indian Law Institute, 1990, pp. 519–26,
http://www.jstor.org/stable/43951282.

REPORTS

o The Law Commission of India, Third report on ‘Limitation Act, 1908 (1956).’
o The Law Commission of India, Thirteenth Report on ‘Contract Act, 1872 (1958).’

BOOKS

o Avtar Singh, Contract Act & Specific Relief, Eastern Book Company, Lucknow, 2020
o Contract & Specefic Relief Act by Avatar Singh
o Indian Contract Act by R.K Bangia

___________________________________________________________________________
Page 21 of 21