Difference between Contingent & Quasi Contracts.
Contingent contract is basically a contract based on happening or non-happening of future or uncertain events. For example, Mr. X contracts to pay to Mr. Y Rs. 10,000 if Mr. Y's house is burnt. This is a contingent contract.
he word contingent ordinarily means ‘subject to chance’. In the Indian Contract Act, 1872, this word has been used to mean conditional, just the way we use it generally.Section 31 to 36 of The Indian Contract Act, 1872 deal with this type of contract. Section 31 of the Act defines ‘contingent contract’ thus:
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.
Though the Indian contract Act, 1872 does not define quasi contract, it calls them relation resembling those of contracts. However, a quasi-contract may be defined as, “a transaction in which there is no contract between the parties; the law creates certain rights and obligation between them which are similar to those created by a contract. “An obligation created by law for the sake of justice; specif., an obligation imposed by law on parties because of relationship between parties or because one of them would otherwise be unjustly enriched. It’s not a contract, but instead is a remedy that allows plaintiff to recover a benefit conferred on the defendant.
Difference between Contingent & Quasi Contracts.
The term "contingent" can have different meanings depending on the context. Here are a few common uses of the term and their differences:
1. Contingent in finance: In finance, a contingent liability refers to a potential obligation or liability that may arise in the future depending on the occurrence of certain events. For example, a company may have a contingent liability if it is facing a lawsuit that has not yet been settled. This means that the company may have to pay a certain amount of money if the lawsuit is resolved against them. A contingent asset, on the other hand, is a potential asset that may be acquired in the future depending on certain events. For example, a company may have a contingent asset if it has a pending patent application that, if granted, would give them exclusive rights to a particular invention.
2. Contingent in employment: In the context of employment, a contingent worker is someone who is employed on a temporary or part-time basis and does not have a permanent contract. These workers are often hired to meet short-term needs or to fill in for absent employees. Contingent workers may include freelancers, contractors, temporary employees, or consultants. They are not entitled to the same benefits and protections as permanent employees.
3. Contingent in real estate: In real estate, a contingent offer refers to an offer to purchase a property that is dependent on certain conditions being met. For example, a buyer may make a contingent offer on a house, stating that the offer is only valid if they are able to secure financing or if a home inspection is satisfactory. If the conditions are not met, the offer may be withdrawn or renegotiated.
Overall, the term "contingent" refers to something that is dependent on certain conditions or events. The specific meaning and usage of the term can vary depending on the context.