QUASI CONTRACT

CHAPTER V SECTION 68-72

Chapter V

Certain Relations resembling those created by contract

The basis of this obligation is that no one should have Unjust Enrichment
at the cost of another
Lord Mansfield considered to be the real founder of such obligation based
on the above principle.
Section 68

 Discussed under Capacity to contracts

Section 69

 Interested in making the payment

 Himself should not be bound to pay
 Defendant should have been bound by law to pay the money.
 Payment to another person and not to himself
 Port trust Madras v. Bombay co. AIR 1967 Mad 31
Section 70

 Obligation of persons enjoying benefit of non gratuitous act

Essentials:
 Lawful doing/ delivering
 No intention to do the act gratuitously
State of West Bengal v. BK Mondal & Sons
 Enjoyment of benefit by the defendant is necessary
P.C. Wadhwa v. State of Punjab
 Section 70 applicable on Government as well
 Section 70 not invoked against minor
Section 71

 Finder treated as a bailee in terms of duties and liabilities.

 Read with Section 169
 Finder’s right of lien and compensation
Section 72

 Money paid under mistake is recoverable whether the mistake is fact or

law
 payment should be without authority of the law
 Money is not receivable where there is no unjust enrichment of the
defendant
 If the receiver of money has no longer the same with him and has
further paid it under a similar mistake he cannot be required to repay
the same. (United bank of India v. A.T.A.K Hussaini)
Distinction between Section 20 and
72

 Under S. 20 any agreement which has been entered due to a mistake of

facts is void. If under such a mistake some goods have been delivered
or some money has been paid then it has to be reimbursed under S. 65.
However, S. 72 deals with a different situation that of a quasi contract.
Under this Section the money or goods have been delivered not due to
an agreement but due to a mistake or coercion. The reimbursement
under this Section has to be made under S. 65 but under S. 72 itself