QUASI - CONTRACTS

Chapter V: Of certain relations resembling those created by contract

Sections 68-72 of Indian Contract Act

Definition
 Quasi contracts are the contracts which are
not based on actual promises.

 These contracts are created by

circumstances ,where one person has done
something for another or paid money on his
behalf, and the person enjoyed the benefit of
the same.

 Though no contractual relation exists between

the parties, law makes out a contract for them
and such a contract is called quasi contract.
 Example:-
 A gas company sends a gas cylinder to ‘A’
but ,by mistake , it is delivered to ‘B’ who
takes it and uses it.

 In this case, the company reserves the

right of payment for the cylinder from ‘B’.
 These kind of relations are known as
quasi contracts.
 TYPES OF QUASI CONTRACTS
 Claim for necessaries supplied
 Payment by an interested person
 Obligation of a person enjoying benefit
of non-gratuitous act
 Responsibility of finder of goods
 Money paid by mistake or under
compulsion
Claim for necessaries supplied
 If a person incapable of entering
into a contract or any one whom he
is legally bound to support, is
supplied by another person with
necessaries suited to his condition
in life, the supplier is free to recover
the price from the property of the
incapable person.
 Example:-
 A supplies to B, a lunatic, with
necessaries suitable to his condition in
life.

 A is entitled to be reimbursed from B’s

property.
CONDITIONS
 The goods supplied were necessary
for supporting a person in his
position, status, etc.
 The infant or any such other person
had not already a sufficient supply
of these necessaries.
 Payment by an interested person
 This section provides that a person
who is interested in the payment of
money which another is bound by law
to pay and who, therefore , pays it, is
free to be reimbursed by other.
 EXAMPLE:-
 ‘B’ holds land in Bengal granted by a Zamindar on
lease.
 Some revenue, in arrears, is payable to the
Government by the Zamindar.
 His land is advertised for sale by the government.
As per the revenue laws, the consequence of such
sale will be the annulment of B’s lease.
 B to prevent the sale and the consequent
termination of his own lease pays to the
government the sum due from A .
 A is bound to make good to B the amount so paid.
CONDITION
 A person must by law be bound to
pay some money.
 Another person must be interested
in the payment of that money.
 The person must have paid the
money because of such interest.
 OBLIGATION OF A PERSON
ENJOYING BENEFIT OF NON-
GRATUTIONS ACT(SEC 69)

 Where a person lawfully does

anything for another person or
delivers anything to him, not
intending to do so gratuitously, and
such other person enjoys the benefit
thereof, the latter is to make
compensation to the former in
respect of, or to restore the thing so
done or delivered.
EXAMPLE:-
 ‘A’ a tradesman leaves good at ‘B’
house by mistake .
 ‘B’ treats the good as his own.
 He is bound to pay ‘A’ for them.
 CONDITION
 The thing must have been done
lawfully.
 It must have been done by a person
not intending to act gratuitously.
 The person for whom the act is done
must have enjoyed the benefit of it.
RESPONSIBILTY OF FINDER OF
GOODS

 A person who finds goods belonging

to another and takes into his/her
custody, is subject to the same
responsibility as a bailee.
EXAMPLE:-
 H picked up a diamond from the floor of
F’s shop and handed over the same to F
to keep it safe till the owner is found .
 Inspite of the best efforts the true owner
could not be reached., after some time H
tendered to F the lawful expenses
incurred by him for finding the true owner
and asked F to handover the diamond to
him .F refused.
 It was held that F must return the diamond
to H as he is entitled to retain that against
the whole world except the real owner
CONDITION
 Where the thing found is in danger.
 Where the owner cannot with
reasonable diligence be found out.
 Where the owner is found out, but
refuses to pay lawful charges of the
finder.
MONEY PAID 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 100 rupees to
‘C’ . ‘A’ alone pays the amount to ‘C’
and ‘B’ not knowing of this fact,
pays 100 rupees to ‘C’. ‘C’ is bound
to repay the amount to ‘B’.