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Quasi Contract

A quasi-contract is a legal obligation imposed to prevent unjust enrichment without a formal contract. It includes various types such as the supply of necessities to incapable persons, payment by an interested person, obligations for non-gratuitous acts, responsibilities of finders of lost goods, and payments made by mistake or coercion. Quasi-contracts serve to ensure fairness and justice in situations where one party benefits at another's expense.

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Quasi Contract

A quasi-contract is a legal obligation imposed to prevent unjust enrichment without a formal contract. It includes various types such as the supply of necessities to incapable persons, payment by an interested person, obligations for non-gratuitous acts, responsibilities of finders of lost goods, and payments made by mistake or coercion. Quasi-contracts serve to ensure fairness and justice in situations where one party benefits at another's expense.

Uploaded by

kaveriababl
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Quasi-Contract: Meaning, Definition, and Kinds

Meaning of Quasi-Contract

A quasi-contract is a legal obligation imposed by law on a person to prevent unjust enrichment at


the expense of another, even though no formal contract exists between them. It is based on equity,
justice, and good conscience.

Definition of Quasi-Contract

According to Salmond, "A quasi-contract is not a real contract, but a contract implied by law, under
which a person incurs obligations even without entering into an agreement."

Kinds of Quasi-Contracts (Indian Contract Act, 1872)

1. Supply of Necessaries to a Person Not Competent to Contract (Section 68)

If a person supplies necessities (food, clothing, medical aid) to someone incapable of contracting
(like a minor or a mentally ill person), the supplier can claim reimbursement from the person's
property.
Example: A shopkeeper provides food to a 14-year-old orphan. The shopkeeper can claim
reimbursement from the minor's property.
Case Law: Chappell v. Cooper (1844) - A mentally ill person was provided with necessities. The
court allowed reimbursement from the person's estate.

2. Payment by an Interested Person (Section 69)

If a person pays on behalf of another who is legally bound to pay, they can claim reimbursement.
Example: A neighbor pays property tax on behalf of an absent owner. The neighbor can claim
reimbursement.
Case Law: Gopal Singh v. Hazarilal (1926) - A tenant paid tax on behalf of the landlord and was
reimbursed.

3. Obligation to Pay for Non-Gratuitous Act (Section 70)

If a person lawfully does something for another expecting compensation, and the other person
benefits, they must pay.
Example: A mistakenly delivers valuable goods to B, who uses them. B must either return the goods
or compensate A.
Case Law: State of West Bengal v. B.K. Mondal & Sons (1962) - A company supplied materials for
government work and was compensated.

4. Responsibility of Finder of Lost Goods (Section 71)

A person who finds lost goods must take reasonable care and return them. The finder can claim
compensation for expenses.
Example: A finds B's lost wallet and spends Rs.500 on advertisements. B must reimburse A.
Case Law: Hollins v. Fowler (1875) - A person sold found goods without attempting to return them
and was held liable.

5. Payment by Mistake or Coercion (Section 72)

If someone receives money or goods by mistake or coercion, they must return it.
Example: A bank mistakenly credits Rs.10,000 into B's account. B must return the money.
Case Law: Saraswati Devi v. Sekharji (1960) - A person who received excess payment had to return
it.

Conclusion

Quasi-contracts ensure justice when one party benefits unfairly at another's expense. Unlike regular
contracts, they arise by law to prevent unjust enrichment.

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