• Quasi contracts

• ‡Quasi means almost or apparently but not

• really or as if it were
• ‡Obligation between parties is not contractual
• but one which is treated as contractual by law
• ‡Courts create quasi contracts to protect the
• unjust enrichment of the parties in dispute
• over payment of goods or services
• 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
• ‡Is a full fledged contract and
• is binding
• 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
• Types 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
• Necessaries includes:
• ‡Things suited to the conditions of incompetent
• parties
• ‡Articles without which a person cannot reasonably
• exist
• ‡Articles required to maintain a particular person in
• the state and degree in which he is
• Illustration:
• ‡A supplies B, a lunatic, with necessaries suitable to his
• condition in life. A is entitled to be reimbursed from
• Bs property.
• ‡A minor studying at Cambridge was supplied with
• clothing, including eleven waist- wats. He already had
sufficient clothing with him. It was held that the waist-
wats were not necessary articles and so he was not
required to pay for them
• Section 69
• Reimbursement of money paid, in which he is interested
• Essentials:
• ‡There must be a person who is bound by law to make a
• certain payment.
• ‡The person paying must himself not be bound to pay.
• ‡Where he is jointly liable to pay, he cannot recover the paid
• amount under this section.
• ‡There must be another person who must be interested in
• such payment being made.
• ‡Interest must exist at the time of payment
• ‡The payment must be made bonafide for the protection of
• ones own interest.
• Case:
• Secretary of state v. G.T. Sarin & Co
• Section 70
• Obligation of person to pay for enjoying benefit of non-
• gratuitous 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
• Illustration:
• ‡ A, a tradesman, leaves his goods at Bs place by mistake
and
• B treats the goods as his own. He is bound to pay A for
them.
• ‡ A saves Bs property from fire. A is entitled to receive
• compensation from B if it is proved that he did not intend to
• act gratuitously.
• Case:
• Damodara mudaliar v. Secretary of state for India
• Section 71:
•  responsibility of finder of goods
• 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
• His liabilities:
• ‡Responsible to take care of the goods as if they
• were his own
• ‡Must with reasonable diligence trace the true
• owner
• Case:
• Hollins v. Fowler
• 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.
• Illustration:
• A and B jointly oweRs.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.
A railway co. refuses to deliver certain goods to the consignee,
except upon the payment of illegal charge for carriage. The
consignee pays the sum charged in order to obtain the goods. He
is entitled to receive the excessive amount as paid by him