Quasi contracts

Quasi contracts are the contracts which are not founded on actual promises.

The relationship is created by the circumstances, where one party has done something for another or paid money on his behalf, and the other person has enjoyed benefit of the same.

Thus some legal rights and obligations are created between the concerned parties even in the absence of real contract. such kind of contractual relations are known as quasi contracts.

Quasi contracts….

Quasi contract rests on the grounds of equity that a person shall not be allowed to enrich himself unjustly at the expense of another.

The principle unjust enrichment requires following-

1. The defendant has been enriched by the receipt of a benefit,

2. The enrichment is at the expense of the plaintiff,

3. The retention of the enrichment is unjust.

Kinds 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)

Supply of necessities (Sec.68)

If a person incapable of entering into a contract, or anyone 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.

Payment by an interested person (Sec.69)

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 other.

The essential elements of this provision are:- 1. The payment made should be bona fide for the

protection of ones interest.2. The payment should not be voluntary.3. The payment must be such as the other party

was bound by law to pay.4. The payment must not be made to self.

Obligation to pay for non gratuitous act (Sec.70)

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 the compensation to the former in respect of, or to restore, the thing so done or delivered.

The essential elements of this provision are:-1. The thing must have been done lawfully.2. The person doing the act should not have intended to

do it gratuitously.3. The person for whom the act is done must have

enjoyed the benefit of the act.

Responsibility of finder of goods (Sec.71) The law implies an agreement between the

finder of the goods and the owner.1. Try and find out the true owner.2. Not to appropriate the property to his own

use.3. When real owner is traced he must restore

the property to him.4. The finder is bound to take as much care of

the goods as a man of ordinary prudence would have under similar conditions, taken care of his own goods of similar nature.

Rights of the finder

1. The property shall vest in the finder and he is entitled to retain it against the whole world, except the true owner.

2. The finder has a lien on goods for expenses incurred by him in preserving the goods and finding the true owner.

3. Where the owner has declared a reward for the lost goods, the finder may claim such reward and retain the goods till he gets it.

4. Where the owner refuses to pay the lawful charges of the finder he can sell the goods –

When the goods are in danger of being perished, or When such lawful charges amount to two thirds of the

value of goods or more.

Mistake or Coercion (Sec.72)

A person to whom money has been paid, or anything delivered, by mistake or under coercion, must repay or return it to the person who paid it by mistake or under coercion.