CERTAIN RELATIONS RESEMBLING THOSE CREATED BY CONTRACTS- QUASI CONTRACTS

Meaning of Quasi Contract

Certain relations between parties resemble those created by contract.
Law requires a person who receives the benefit to pay or compensate the person giving the benefit, even though
he receives the benefit without any contract.
There is no contract infact, but is created by law. Such a contract created or constituted by law is called quasi
contract.
Quasi contracts are also called implied contracts.
TYPES OF QUASI CONTRACTS
Section 68
Claim for supply of necessaries to person incapable of contracting
If a person, incapable of entering into a contract, or anyone whom he is legally bound to support, is supplied by
another person with necessaries suited to his condition in life, the person who has furnished such supplies is
entitled to be reimbursed from the property of such incapable person.
Illustrations
A supplies B, a lunatic, with necessaries suitable to his condition in life. A is entitled to be reimbursed
from Bs property

A supplies the wife and children of B, a lunatic, with necessaries suitable to their condition in life. A is
entitled to be reimbursed from Bs property

What are necessaries?

What are necessaries as such is a mixed question of fact and law in each case. Things suited to the conditions of
incompetent parties, can be classified as necessaries. Necessaries include articles required to maintain a
particular person in the state and degree in the life in which he is. Things necessary are those without which an
individual cannot reasonably exist. Loan to a minor to save his property from sale in execution of a decree is
necessity.
Section 69
Reimbursement of money paid in which he is interested
A person, who is interested in the payment of money which another is bound by law to pay, and who therefore
pays it, is entitled to be reimbursed by the other.
Illustrations
Amitabh holds land in Bihar, on a lease granted by Lalu, the zamindar. The revenue payable by Lalu
to the Government being in arrears, his land is advertised for sale by the Government. Under the
revenue law, the consequence of such sale will be the annulment of Amitabhs lease. Amitabh to
prevent the sale and the consequent annulment of his own lease, pays to the government the sum due
from Lalu.
Lalu is bound to make good to Amitabh the amount so paid.

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.
There must be another person who is interested in such payment being made.
The payments must have made by such person interested. Interest should exist at the time of
payment.
The payment must be made bonafide for the protection of ones own interest.
The payment must have been made in good faith.
Section 70
Obligation of person to pay for enjoying benefit of a non-gratuitous act:
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 bound to make compensation to the
former in respect of, or to restore, the thing so done or delivered.
Essentials
Act must be lawful.
The person must have actually supplied goods or rendered service.
Services should have been received without any request.
The person doing the act must not have intended to do it gratuitously.
The person for whom the act is done must have enjoyed the benefit it.
Illustrations
A, a tradesman leaves goods at Bs house by mistake. B treats those goods as his own. B is bound to pay to A
for them.
A saves Bs property from fire. Now A is entitled to be paid, provided the circumstances show that he did not
intend to act gratuitously.
Section 71
Responsibility of finder of goods:
A person who finds goods belonging to another and takes them into his custody, is subjected to the same
responsibility as a bailee.
1. Duties of Finder of Goods:

He must with reasonable diligence trace the true owner.

He is responsible as a bailee to take due care of the goods as a man of ordinary prudence would take of
his own goods.

2. Rights of finder of Goods:

He is entitled to the possession of the goods till the true owner is found.

He is entitled to retain this good until he receives the lawful charges or compensation for retaining the
goods and for care and preservation thereof. However, he cannot sue for such compensation unless a
specified reward has been advertised by the owner.

He can sell the goods if:

the commodity is perishable
the owner cannot be found
owner refuses to pay the lawful charges
lawful charges amount to 2/3rd of the value of commodity found

Section 72
Liability 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.
Money paid under mistake is recoverable whether the mistake be of fact or of law.
Illustration
A and B jointly owe Rs. 100 to C. A alone pays the amount to C and B not knowing this fact, pays Rs. 100 over
again to C. C is bound to repay the amount to B.

Contract and Quasi Contract Distinguished

Contract
1. Contract is an agreement
2. Contract has certain essential elements
3. Full Fledged contract

Quasi Contract
1. There is no agreement at all
2. Some essentials are absent.
3. Resembles a contract, implied contract