Quasi Contracts

PRESENTED BY :HARSH YADAV SWAYAM DATTA

QUASI CONTRACT
A legal agreement created by the courts between two parties who did not have a previous obligation to each other. A normal contract requires two parties to consent to mutually agreeable terms. Under a quasi contract, neither party is originally intended to create an agreement. Instead, an arrangement is imposed by a judge to rectify an occurrence of unjust enrichment.

The Salient features of Quasi Contractual right ,are as follows:

1. Firstly, it does not arise form any agreement of the parties concerned, but is imposed by the law; and
2. Secondly, it is a right which is available not against the entire world, but against a particular person or persons only.

Difference between contract and quasi contract

Contract
Results from the will of the parties expressed with a view to create an obligation Is an agreement Has certain essential elements

Quasi contract
Is an obligation resembling that created by a contract

There is no agreement at all Essentials for formation of a contract are absent Resembles a contract. not a full fledged contract. is an implied contract

Is a full fledged contract and is binding

Kinds of Quasi contracts:

1. Supply of necessities (Sec.68) 2. Payment by an interested person (Sec.69) 3. Obligation to pay for non gratuitous act (Sec.70) 4. Responsibility of finder of goods (Sec.71) 5. Mistake or Coercion (Sec.72)

Section 68
claim for supply of necessaries to person incapable of contracting
Person incapable of contracting includes:

A minor

Person of unsound mind

Person disqualified by law to which they are subject

Section 69
Reimbursement of money paid, in which he is interested A person who has paid a sum of money which another is obliged to pay, is entitled to be reimbursed by that other person provided the payment has been made by him to protect his own interest

ESSENTIAL REQUIREMENTS OF SEC.69

1. The payment made should be bona fide for the protection of ones interest. 2. The payment should not be a voluntary one. 3. The payment must be such as the other party was bound by law to pay.

Section 70
Obligation of person to pay for enjoying benefit of nongratuitous act

Essentials:
act must be lawful person must have actually supplied goods and services Services should have been received without any request act must have been done non-gratuitously person for whom the act has been done should have enjoyed it

Section 71:
Responsibility of finder of goods

A person who finds good belonging to another and takes them into custody is subject to the same responsibility as a bailee

His rights: Entitled to retain the goods until he receives the lawful charges or compensation for retaining the goods and taking care of them. However, he cannot sue for such compensation unless a specified reward has been advertised by the owner. Entitled to possess the goods until the true owner is found Can sell the goods when: Commodity is perishable Owner cannot be found Owner refuses to pay compensation Compensation amounts to 2/3rd of the value of the commodity

Section 72:
Liabilities of a person to whom money is paid or thing delivered by mistake or under coercion A person to whom money has been paid, or anything delivered by mistake or under coercion, must repay or return it.

EXAMPLE:
A and B jointly owe Rs.100 to C. A alone pays the amount. B not knowing it also pays to C. C is bound to repay the amount to B.