In the world of law, contracts are a fundamental aspect of business. They help to establish the terms and conditions of a business agreement between two or more parties. However, not all contracts are the same. There are two types of contracts that are commonly used in business: quasi contracts and contingent contracts.

Quasi Contracts

A quasi contract is a type of contract that is not created through a formal agreement between two parties. Instead, it is created by the law to prevent one party from benefiting unfairly at the expense of another party. Quasi contracts are also referred to as implied-in-law contracts or constructive contracts.

The terms of a quasi contract are similar to those of a standard contract, but they are not explicitly stated in a written agreement. Instead, the terms of a quasi contract are based on the actions and conduct of the parties involved. The law creates a quasi contract when it is deemed necessary to prevent one party from unjustly enriching themselves at the expense of another party.

Contingent Contracts

A contingent contract is a type of contract that is dependent on a specific event or condition. The terms of the contract are agreed upon by both parties but are only enforced if the event or condition specified in the contract occurs. If the event or condition does not occur, then the contract is not enforceable.

Contingent contracts are commonly used in business for situations where the outcome is uncertain. For example, a company may enter into a contract with a supplier to purchase materials at a specified price, but the contract is only enforceable if the company receives a certain number of orders from customers.

Differences Between Quasi Contracts and Contingent Contracts

The main difference between quasi contracts and contingent contracts is that quasi contracts are created by the law, while contingent contracts are created by the parties involved. Quasi contracts are designed to prevent one party from unfairly benefiting at the expense of another party, while contingent contracts are used to protect both parties in situations where the outcome is uncertain.

Another difference between these two types of contracts is that quasi contracts are not dependent on a specific event or condition, while contingent contracts are. Quasi contracts are created based on the actions and conduct of the parties involved, while contingent contracts are created based on a specific event or condition.

In Summary

Quasi contracts and contingent contracts are two important types of contracts used in business. Quasi contracts are created by the law to prevent one party from unfairly benefiting at the expense of another party, while contingent contracts are used to protect both parties in situations where the outcome is uncertain. It is important to understand the differences between these two types of contracts to ensure that your business agreements are properly drafted and enforceable.