QUASI

CONTRACT
S

Meaning

Under certain circumstance, there is no

contract between the parties, even then a
person may receive a benefits to which the law
regards another person is entitled for or person
may receive a benefits foe which the law
consider he should pay to the other person.
Such relationship are termed as Quasi
contract because although there is no formal
agreement between the parties they are put in
the same position as if there were a contract
between them.

According to Indian contract

act
Quasi contract are those relation where
there is no contract or agreement
between the parties, but the law
consider it to be contract

Kinds of Quasi contract (sec 68 to 72)

Supply of necessaries(sec 68)

Payment by an interested person (sec
69)
Obligation to pay for non gratuitous (sec
70)
Responsibility of finder of goods (sec71)
Mistake of coercion (sec 72)

Supply of necessaries (sec

68)

If a person, incapable of entering into a

contract; or anyone whom he is legally
bound to support, is supplied by another
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 person.
Example: A supplies B a lunatic with
necessaries suitable to his condition in
life A entitled to be reimbursed from B

2. Payment by an interested person sec

69

A person who is interested in the payment of money

which another is bound by the law to pay and who
therefore pay it, is entitled to be reimbursed by the
other.
Example: B holds a land in bangal, on lease granted by
A, the zamindar. The revenue payable by A to the
government being in arrears, his land is advertised for
sale by the government. Under the revenue law the
consequence of the such sale will be annulment of Bs
lease. B to prevent the sale and the consequent
annulment of his own leave pays to the government
the sum due from A. A bound to make good to B the
amount so paid.

Essentials required of sec

69

The payment made should be bona fide for

the protection of ones interest.
Example: P left his carriage on Ds
Premises. Ds Landlord seized the carriage
as distress for rent. P paid the rent to obtain
the release of his carriage. Held, P could
recover the amount from D.
The payment should not be voluntary one.
The payment must be such as the other
party was bound by the law to pay.

Obligation to pay for non- gratuitous acts

sec 70

When a person lawfully does anything

for another person or delivers to him,
not intending to do so gratuitously and
such other person enjoys the benefits
thereof, the latter is bound to make
compensation to the former in respect
of, or to restore, the things so done or
delivered.
A a trade man leaves goods at Bs
house by mistake. B treats the goods as
his own. He is bound to pay for them to

Before any right of action under

sec 70 arise, three conditions
must be satisfied

The things must have been done lawfully

The person doing the act should not
have intended to do it gratuitously.
The person for whom the act is done
must have enjoyed the benefits of the
acts.

Damodar mudaliar v Secretary of state of India 1894

A villager was irrigating by a tank. The government
affected certain repairs to the tanks for its
preservation and had no intention to do gratuitously
for the zamindars. The zamindars enjoyed the
benefits thereof. Held they were liable to contribute.

Responsibility of finders of goods sec 71

A person who finds goods belonging to

another and takes them into his
custody. He is bound to take care of the
goods . If he does not, he will be gility of
wrongful conversion of the property. Till
the owner is found out, the property in
goods will vest in the finder and he can
retain the goods as his own against the
whole world.

The finder can sell the goods in the

following cases:

When the things found is in danger of

perishing.
When the owner cannot, with reasonable
diligence, be found out.
When the owner is found out, but he
refuse to pay the lawful charges of the
finder
When the lawful chargers of the finder,
in respect of the thing found amount to
two-third of the value of the thing found
sec 169

Mistake or coercion sec 72

A person to whom money has been paid or

anything delivered by mistake or coercion must
repay pay or return it to the person who paid it by
mistake or under coercion.
Example: A pays some money to B by mistake,
which was really due to c B must refund
money to A. C However cannot recover the
amount from B as there is no contract between
B and C. Thus quasi contract are not in fact
contract but the law impose certain obligation and
protect the interest of innocent parties.

Quantum meruit

Quantum meruit Literally means as

much as earned or as much as is
merited.
When a person has done some work
under a contract and the other party
repudiated the contract or some event
happens which makes the further
performance of the contract impossible
then the party who has performed the
work can claim remuneration for the
work he has already done.

The claims for quantum arise in the

following cases.

When an agreement is discovered to be void sec 65.

When something is done without any intention to do
so gratuitously sec 70
When there is express or implied contract to render
receive but there is no agreement as to remuneration.
When the completion of the contract has been
prevented by the act of the other party to the
contract.
When contract is divisible
When an individual contract is completely performed
but badly.

Compensation for failure to discharge

obligation created by quasi contract.

When an obligation created by a quasi

contract is not discharge, the injured
party entitled to receive the same
compensation from the party in default,
as if that person had contracted to
discharge it and had broken his contract.