Covariance and contravariance real world example

// Contravariance
interface IGobbler<in T> {
    void gobble(T t);
}

// Since a QuadrupedGobbler can gobble any four-footed
// creature, it is OK to treat it as a donkey gobbler.
IGobbler<Donkey> dg = new QuadrupedGobbler();
dg.gobble(MyDonkey());

// Covariance
interface ISpewer<out T> {
    T spew();
}

// A MouseSpewer obviously spews rodents (all mice are
// rodents), so we can treat it as a rodent spewer.
ISpewer<Rodent> rs = new MouseSpewer();
Rodent r = rs.spew();

For completeness…

// Invariance
interface IHat<T> {
    void hide(T t);
    T pull();
}

// A RabbitHat…
IHat<Rabbit> rHat = RabbitHat();

// …cannot be treated covariantly as a mammal hat…
IHat<Mammal> mHat = rHat;      // Compiler error
// …because…
mHat.hide(new Dolphin());      // Hide a dolphin in a rabbit hat??

// It also cannot be treated contravariantly as a cottontail hat…
IHat<CottonTail> cHat = rHat;  // Compiler error
// …because…
rHat.hide(new MarshRabbit());
cHat.pull();                   // Pull a marsh rabbit out of a cottontail hat??

Let's say you have a class Person and a class that derives from it, Teacher. You have some operations that take an IEnumerable<Person> as the argument. In your School class you have a method that returns an IEnumerable<Teacher>. Covariance allows you to directly use that result for the methods that take an IEnumerable<Person>, substituting a more derived type for a less derived (more generic) type. Contravariance, counter-intuitively, allows you to use a more generic type, where a more derived type is specified.

See also Covariance and Contravariance in Generics on MSDN.

Classes:

public class Person 
{
     public string Name { get; set; }
} 

public class Teacher : Person { } 

public class MailingList
{
    public void Add(IEnumerable<out Person> people) { ... }
}

public class School
{
    public IEnumerable<Teacher> GetTeachers() { ... }
}

public class PersonNameComparer : IComparer<Person>
{
    public int Compare(Person a, Person b) 
    { 
        if (a == null) return b == null ? 0 : -1;
        return b == null ? 1 : Compare(a,b);
    }

    private int Compare(string a, string b)
    {
        if (a == null) return b == null ? 0 : -1;
        return b == null ? 1 : a.CompareTo(b);
    }
}

Usage:

var teachers = school.GetTeachers();
var mailingList = new MailingList();

// Add() is covariant, we can use a more derived type
mailingList.Add(teachers);

// the Set<T> constructor uses a contravariant interface, IComparer<in T>,
// we can use a more generic type than required.
// See https://msdn.microsoft.com/en-us/library/8ehhxeaf.aspx for declaration syntax
var teacherSet = new SortedSet<Teachers>(teachers, new PersonNameComparer());

Here's what I put together to help me understand the difference

public interface ICovariant<out T> { }
public interface IContravariant<in T> { }

public class Covariant<T> : ICovariant<T> { }
public class Contravariant<T> : IContravariant<T> { }

public class Fruit { }
public class Apple : Fruit { }

public class TheInsAndOuts
{
    public void Covariance()
    {
        ICovariant<Fruit> fruit = new Covariant<Fruit>();
        ICovariant<Apple> apple = new Covariant<Apple>();

        Covariant(fruit);
        Covariant(apple); //apple is being upcasted to fruit, without the out keyword this will not compile
    }

    public void Contravariance()
    {
        IContravariant<Fruit> fruit = new Contravariant<Fruit>();
        IContravariant<Apple> apple = new Contravariant<Apple>();

        Contravariant(fruit); //fruit is being downcasted to apple, without the in keyword this will not compile
        Contravariant(apple);
    }

    public void Covariant(ICovariant<Fruit> fruit) { }

    public void Contravariant(IContravariant<Apple> apple) { }
}

tldr

ICovariant<Fruit> apple = new Covariant<Apple>(); //because it's covariant
IContravariant<Apple> fruit = new Contravariant<Fruit>(); //because it's contravariant