1. [QUASI CONTRACT] December 12, 2010
QUASI CONTRACTS :-
Contracts which are not created by the parties to the contract but created by the court of Law in
order to prevent undue enrichment of one at the cost of the other are called Quasi Contract.
Even though these contracts may not fulfill all the essentials of a valid contract, it is considered
to be valid by the courts of law since they create such contracts.
Following are the examples of Quasi contracts:-
(1) Rights of a person supplying necessaries to a minor :
Any person supplying necessaries to a minor has the right to receive compensation for the
same from the property of the minor otherwise it would amount to undue enrichment of
the minor at the cost of the supplier of necessaries. In this case, even though the minor
does not have the capacity to contract the court holds the contract valid in order to
safeguard the interest of the supplier of necessaries.
(2) Obligation of a person receiving benefit of a non gratuitous act :-
Any person who receives the benefit of a non-gratuitous act done by the other has the
obligation to compensate the other for the same otherwise it would amount to undue
enrichment of the person receiving such a benefit at the cost of the person giving such a
benefit.
For example,
If a shopkeeper delivers some sweets along with the invoice for it to Mr. X which was
supposed to be sold to Mr. Y and if X consumes the sweets he becomes liable to pay the
price for the same. Otherwise it would amount to undue enrichment of x at the cost of Y
or the shopkeeper.
(3) Liability of a person to whom the goods or money is delivered by mistake :-
If a person is delivered goods or money by the mistake belonging to the other, he
becomes liable to compensate the other for the same, Otherwise it would amount to
undue enrichment of the person to whom the goods or money is delivered by mistake at
the cost of the person making such a delivery.
4) Right of a person who had made any payment which was due to the paid by
another, in the payment of which he is personally interested.
If a person makes payment which should have been rightfully made by another and in the
payment of which he is personally interested he has the right to be indemnified for the
same. Otherwise it would amount to undue enrichment of the person who should have
made the payment at the cost of the person making such a payment.
For E.g. If a tenant pays certain water bills which should have been rightfully paid by the
landlord fearing that the water supply may be cut he has the right to be indemnified for
the same by the landlord otherwise it would amount undue enrichment of the landlord at
the cost of the tenant.
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2. [QUASI CONTRACT] December 12, 2010
5) Liability of the finder of goods:
The finder of goods belonging to the other is not liable to take the same into his custody.
But if he takes them into his custody, he becomes liable as a bailee of those goods and is
duty bound to perform the following:-
(a) Take reasonable care of goods as a man of ordinary prudence would do in the case
of his own goods.
(b) Make reasonable effort to search for the true owner and reinstate (return) the goods
to him.
(c) If the goods are lost or destroyed in his custody he becomes liable to compensate
the true owner for the same.
He has the right to be reimbursed for all the reasonable expenses incurred by him to
safeguard those goods and sell those goods if the expenses incurred exceed 2/3 of the
value of those goods or if it is perishable goods.
Difference Between Contract and Quasi contract
Contract Quasi Contract
1. Contract results from the will of 1. Quasi contract is an obligation
the parties expressed with a view resembling that created by a
to create an obligation. contract
2. A contract is an agreement 2. There is no agreement at all.
3. The contract has certain essential 3. Essentials for formation of a
elements. contract are absent.
4. It is a full-fledged contract and is 4. A quasi contract resembles a
binding. contract .It is an implied contract,
but its results resemble those
created by a contract.
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3. [QUASI CONTRACT] December 12, 2010
Important MCQ’s on quasi contract
Q. 1 A Quasi - contract under Indian contract Act
1. Is an agreement
2. Is a contract
3. Has only a legal obligation
4. Is not any of these
Q. 2 The basis of 'quasi contractual' relations is the :
1. Existence of a valid contract between the parties
2. Prevention of unjust enrichment at the expense of others
3. Existence of a voidable contract between the parties
4. Provisions contained in section 10 of the Indian Contract Act
Q.3 Quasi- contracts are ______ contracts.
1. Void
2. Valid
3. Voidable
4. Illegal
Q.4.A person supplying ‘necessaries ‘to an incompetent person is entitled to be reimbursed from
the
1. Incompetent person personally
2. Parents of incompetent person
3. Property of incompetent person
4. Funds with the state government
Q.5. Match the following:
1. Section 68 a)liability of finder of goods
2. Section 69 b)Supply of necessaries to incompetent person
3. Section 70 c)Payments made by interested persons
4. Section 71 d)Compensation for non-gratuitous acts
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