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Quasi Contracts

What is Quasi Contract ??

Contract is a result of an agreement enforceable
by law

In some cases there is no offer, no acceptance,

no consensus.

No intention on the part of parties to enter into

contract and still the law, from conduct and
relationship of parties, implies a promise imposing
obligation on one party and conferring a right in
favour of the other. These are Quasi contracts
Contract Quasi
Contracts results from Quasi contract is an
the will of the parties obligation resembling
expressed with a view that created by a
to create an obligation contract

Contract is an There is no agreement

It has certain essential Essentials for
elements formation of a contract
are absent
It is a full fledged It is not a full fledged
contract and is binding contract
Section 68

“If a person, incapable of entering into a contract,

or anyone 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
Illustrations – Section 68

 Kiran supplies Ashok, a lunatic, with

necessaries suitable to his condition in life.
Kiran is entitled to be reimbursed from
Ashok’s property

 Vikram supplies the wife and children of

Amit, a lunatic, with necessaries suitable to
their condition in life. Vikram is entitled to be
reimbursed from Amit’s property
What are necessaries ?
 Necessaries as such is a mixed question of fact and law in each
case. Things suited to the conditions of incompetent parties, can
be classified as ‘necessaries’. Necessaries include articles
required to maintain a particular person in the state and degree
in the life in which he is. Things necessary are those without
which he cannot reasonably exist.

 Debt incurred for performing funeral obligations of the father of

a minor is a ‘necessity’
Section 69

“Reimbursement of person paying money

due by another, in payment of which he is

Definition -
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.
Illustrations – Section 69
• Lalu holds land in Bihar, on a lease granted by the
zamindar Patil.
• The revenue payable by Zamindar Patil to the
Government being in arrear, his land is advertised
for sale by the Government.
• Under the revenue law, the. consequence of such
sale will be the annulment of Lalu’s lease. Lalu, to
prevent the sale and the consequent annulment of
his own lease, pays to the government the sum due
from Zamindar Patil.
• Zamindar Patil is bound to make good to Lalu the
amount so paid.
Pre conditions..
 The plaintiff should be interested in making
the payment in order to protect his own
interest and the payment should not be
voluntary one.
 Moreover, the payment must have been done
in good faith and not to manufacture evidence
of title to land or any other thing.
 The payment must be such as the other party
was bound by law to pay.
 The payment must not be such as the plaintiff
himself was bound to pay. He should only be
interested in making the payment.
 A suit under this section is maintainable only
for reimbursement and not for contribution
(Ramkrishna vs Radhakrishana).
Section 70

Obligation of person to pay for enjoying benefit

of a 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.”
Section 70

For giving rise to a right of action under this section,

the following conditions must be fulfilled:
Action must have been done lawfully in good faith.

Action must have been done by a person not intending

to act gratuitous.

The person for whom the action is done must have

enjoyed the benefit of the act.
Section 70

Kantibhai, a tradesman leaves goods at Sharat’s house by

mistake.Sharat treates those goods as his own. Sharat is
bound to pay to Kantibhai for them.

Viren saves Pushpam’s property from fire. Now Viren is entitled

to be paid, provided the circumstances show that he did not
intend to act gratuitously.

When a coolie takes the luggage at railway station without

being asked by Priyanka, and if Priyanka does not
object to that then she is bound to pay for the coolie’s service.
` Section 71

Responsibility of finder of goods:

“A person who finds goods belonging to another and
takes them into his custody, is subjected to the same
responsibility as a bailee.”

Thus, Law between the owner and finder of the goods

also implies an agreement and the latter is deemed to be
a bailee
: Responsibility of finder of goods
Section 71

1. Duties of Finder of Goods:

• He must try to find out “the real owner” of the goods and must not
appropriate the property to his own use ( Section 403 IPC )
• He must take as much care of the goods as much a man of ordinary
prudence would take of his own goods of same bulk, quality and value.
(Sec 151 )

2. Rights of finder of Goods:

• He is entitled to the possession of the goods till the true owner is found.
( Case : Hollins vs FowlerS)
• He is entitled to retain this good until he receives the lawful charges or
compensation for retaining the goods and for care and preservation
thereof. However, he cant sue for such compensation unless a specified
reward has been advertised by the owner.
• He can sell the goods if:
• The commodity is perishable
• the owner cannot be found
• owner refuses to pay the lawful charges
• Lawful charges amount to 2/3rd of the value of commodity found
Section 72

“A person to whom money has been paid, or

anything delivered, by mistake or under coercion,
must repay or return it.”

MISTAKE – A mistake of law as well as a mistake of

Section 72 – Illustrations

1. Mr. A receives a fruit parcel by mistake on his

birthday. He consumes it thinking it is a gift.

A. He assumes the liability to return the parcel or pay for

the same.

2. Mr.X owes Mr.Y Rs. 50 /-. He pays Mr.Z by


A. Mr. Z assumes the liability to return the amount to Mr.X.

However, Mr. Y cannot recover the amount from Mr.Z in
the absence of a clear contract.
The End