Professional Documents
Culture Documents
1.Supply of necessities:
According to section 68 of the contract act, if a person who is
incapable to enter into a contract(minor or lunatic) or someone whom
he is legally bound to support is supported by another in providing
necessaries that are suited in his conditions of life, is entitled to be
reimbursed from the property of such incapable person.
the supplied person is not liable, the price of goods supplied can
be recovered from his property only
Such person makes the payment to secure his own interest and later on
receives his money back also. Following points must be noted:
4.Finder of goods.
According to section 71 of the contract act, when a person finds goods
belonging to another person and takes them into his own custody, he is
subject to same responsibility as a "bailee". He is bound to take as
much care of the goods as a man of ordinary prudence would.
Following are the duties of such person
Example: Hina with her mother went to a garments shop where she
bought a dress worth Rs5000, at that they time they had only Rs2000 in
their purse. They paid the shopkeeper Rs 2000 and promised to return the
remaining 3000 in the evening. The shopkeeper agreed. In evening Heena
went to the shop and paid him the sum of Rs 3000. the next day her
mother also went to the shop unaware of the fact that her daughter has
paid the money, she also paid him 3000 rupees. The shopkeeper took that
too. The mother paid that sum in ignorance and the shopkeeper enriched
himself unjustly with that extra sum of 3000. he is liable to pay the sum
of 3000 back to Heena's mother.
Types of Quasi Contracts.
The various types of Quasi contracts are as follows:
1.Supply of necessities:
According to section 68 of the contract act, if a person who is
incapable to enter into a contract(minor or lunatic) or someone whom
he is legally bound to support is supported by another person in
providing necessaries that are suited in his conditions of life, is
entitled to be reimbursed from the property of such incapable person.
the supplied person is not liable, the price of goods supplied can
be recovered from his property only
Such person makes the payment to secure his own interest and later on
receives his money back also. Following points must be noted:
4.Finder of goods.
According to section 71 of the contract act, when a person finds goods
belonging to another person and takes them into his own custody, he is
subject to same responsibility as a "bailee". He is bound to take as
much care of the goods as a man of ordinary prudence would.
Following are the duties of such person
He can retain goods against any person except the true owner.
He can ask the owner for all expenses which incurred in taking
care of the goods or finding the owner
However there are some situations where a finder can sell the goods
.Following are the conditions.
If the goods are perishable, he can either use it or sell it. For
example Mr.Khan went to a flower shop and left his bag of
fruits there. the flower vendor had no refrigerator to put the
fruits.he can sell those fruits.
For example. The fruits which Mr.Khan left at the flowers vendor,
the vendor did not have a refrigerator. He bought ice to keep the
fruits from drying. The next morning Mr.Khan came and asked for
his fruits. Vendor asked him for the compensation of amount he
spent while taking care of fruits. Khan refused to pay, vendor has
the right to retain goods and sell them.
Special damages
Exemplary damages
Nominal damages
Liquidated damages
Example:
A promised B to deliver some products. But did not tell him that the
breach of contract will cause him special damage. A committed
Breach of contract . B sued him and B was awarded general damages
and not liable for loss of profits.
2. Special Damages
Compensation for special losses is called special damages.
Compensation is recovered only in special circumstances and if it is
brought to the notice of the defaulting party. When a party claims
special damages it has to prove that the other party to the contract,
knew, at the time of making the contract, that there would be a loss in
special circumstances, in case of breach of contract. If special
damages are proved as a result of breach of contract and it is
communicated to the other parties then special damages will be
awarded.
Example:
A invited a singer to sing at his son's wedding party and gave him
advance of 10.000 and told him that if he fails to perform his romise A
will suffer special loss. The singer commited breach of contract and
was held liable to special damages
3. Exemplary Damages
Exemplary damages are also called vindictive damages. They are
awarded by the court if a party has suffered mentally or emotionally
due to breach of the contract. The court makes an exception to the
general principle that damages should be awarded only for financial
loss due to the breach of contract. The law finds it difficult to
compensate for mental pressure or suffering or humiliation of the
aggrieved party due to the breach of the contract. It usually
compensates for financial losses. In exceptional cases it awards
exemplary damages.
There are two important matters in which the court awards exemplary
damages. These are the following:
Example :
A person applied for travel loan. Bank promised to credit his account.
Later when he tried to withdraw money from bank account, he found
that the bank had not credited his account. In this case exemplary
damages were allowed to him
4. Nominal Damages
Nominal damages are awarded when in a breach of contract the
aggrieved party does not have any losses due to the breach. The courts
however treat this seriously so that such types of breach are not made
by the parties. Therefore, they award a small token as compensation to
take note of the offence made by the guilty party. A small
compensation may be charged so that the guilty party recognizes its
mistake.
Example: shahkar promises umer to sell jaggery t rate of 200 per bag.
Shahkar does not supply umer jaggery. At the time of breach, the market
rates were the same. Umer is entitled to nominal damages only
Jasee promised mujo to buy his car. But later rfused. Mujo sold it to
musawir and suffered no loss. Mujo then sued jasee for loss of profit.
Held that mujo is entitled to nominal damages only.
Liquidated damages:
When the sum of money is mentioned in the contract that if a party
breaches thecontract, they will be liable to pay that specificsum of money
and not more .
Example:
A promised B to deliver 20 cars for servicing purpose. If he fails he shall
pay 20.000 as damages. In case of breach of contract, he had to pay
20,000 as damages.
Example: A agrees to buy and B agrees to sell a picture by a dead painter and two
rare China vases. A may compel B specifically to perform the contract for there is no
standard ascertaining the actual damages which would be caused by its non-
performance
A, a singer, contract with B, the manager of a theatre, it sing at his theatre for one
year, and to abstain from singing at other theatre during this period. She absents
herself. B cannot compel A to sing at his theatre, but he may sue her for an
injunction restraining her from singing at other theatres.
The contract between the parties should consist of two parts. One
agreement should be affirmative and the other should be negative
in nature.
Examples: Ali contracted with Saleem that he will not build a house on
his land, but he started construction. Court granted injuction against Ali
and made him to stop the work.