Contingent Contract Vs Quasi Contract: A Comprehensive Comparison

Contracts are essential elements in any business transaction or personal agreement. Contracts define the terms and conditions to be followed by parties involved in the agreement. Different types of contracts exist, and this article seeks to differentiate two specific types of agreements – Contingent Contracts and Quasi Contracts.

Contingent Contracts

Contingent contracts are agreements that rely on the occurrence or non-occurrence of a specific event. It is an agreement that only becomes valid when a particular event occurs. If the event does not occur, the agreement will be void. Examples of these types of contracts include insurance and warranty policies.

Quasi Contracts

A quasi contract is a legal concept used to create an obligation between two parties that did not have a prior agreement to start with. This type of contract is different from the usual agreement, which arises from the intention of parties to create a legal relationship. It is an obligation that arises from circumstances, and it is imposed by the court to ensure that justice is done.

Differences between Contingent Contracts and Quasi Contracts

| Contingent Contracts | Quasi Contracts |

|———————|——————–|

| Occurrence of an event is crucial for the validity of the agreement | No prior agreement between parties to start with |

| Contract is valid only after the specific event occurs or does not occur | Imposed by the court to ensure justice is done |

| One or both parties agree to the contractual term before the event happens | One party is obligated to the other party even without a prior agreement |

| The specific event triggers the performance of the contractual obligation | A quasi contract arises in the absence of a valid contract |

| Parties are aware of the potential outcome, whether the event occurs or not | Quasi contracts are based on equitable principles and not contractual agreements |

| Examples include insurance and warranty policies | Examples include receiving goods or services without agreement or consent |

Conclusion

In summary, the difference between a contingent contract and quasi contract lies in the nature of the obligation and the circumstances under which the obligation arises. Contingent contracts are agreements that depend on the occurrence or non-occurrence of a specific event to become valid, while quasi contracts are obligations imposed by the court to ensure justice is done. Understanding these contracts` differences is crucial in ensuring that the agreements parties enter into are legally binding and enforceable.