Quasi contracts

Quasi contracts are the contracts which are actually not any agreement or contract because there is no  competency, consideration, offer and acceptance, free consent of parties etc which are considered as the essentials of contract. But inspite of that these contracts are legally enforceable by courts of law and such type of contracts are known as quasi contracts. These contracts are relation resembling contracts but actually they are not. Quasi contract are based on the principle of unjust enrichment which means that no person can take the benefit of any other by causing loss to that person for own benefit. No person can unjustly enrich himself with the loss of other person. He has to pay back for the loses which other person suffer because of his own benefit. And other person has the right to recover his lose through the property of enriched person.

So there are some sections in Indian contract act through which any person can recover lose which he suffered due to other person which are as follows:

(1) Necessaries supplied to a person who is incapable of contracting (section 68)

If some necessary goods which are very basic requirement for one’s survival are supplied to other person who is incapable to fulfil his necessaries at that time and also incompetent to involve in any contract. Then the person has right to recover his loses from the property of that other person under section 68 of the indian contract act.

Eg : if A  is a child of age 10 years and he has no money for his education. So B a man of 40 years and paid A’s school fees and fulfil all other basic necessities then,  afterwards B is entitled to receive all expenditures which he spend on A through A’s property.

(2) Reimbursement by an interested party (section-69)

If any person has interest in certain property or goods and pays on behalf of the owner of that property because owner has no money to pay at that time. Then the person is entitled to reimburse his amount from the owner under section 69.

Eg: If ‘A’ works in a shop of which ‘B’ is owner and income of ‘A’ totally depends on this shop. ‘B’ has to pay some amount to ‘C’ but he has no money so he decided to sell his shop.  But as A’s income is totally depends in this shop so ‘A’ paid required amount to ‘C’ on behalf on of ‘A’. So under such circumstances, ‘A’ is entitled to take back his amount from ‘B’ under section 69.

(3) Obligation of a person who enjoys the benefit of any non gratuitous act (section 70)

Non-gratuitous act means which are not supposed to be the act of charity or giving gift. So if a person enjoyed the benefit of which are neither any charity nor any gift then the person has to compensate the loss which other person faced due to his non gratuitous act.

Eg: if  A’s parcel  whose payment is also already paid, sent to B’s house due to some misconception of addresses and B used this parcel for his own use. Then B is entitled to compensate A under section 70.

(4) Finder of the goods (section 71)

If any person finds any goods which belongs to some other person and he knows that this thing belongs to that particular person then he is entitled to keep such goods safely and must return back to its owner.

Eg: if A found a purse carrying some original documents inside it then the person is entitled to safely keep that purse till its owner is not there and finally when owner is there, A has to return back the purse to its owner.

(5) Liability of a person to whom payment is made by mistake or under coercion(section 72)

If a person recieves payment misunderstandly then he is liable to give back that payment to that person who has given it.

Eg: if two students A and B take a room on rent and divide their rent cost equally and if A paid the rent jointly for both of them and B don’t know that A has paid rent for him also and unknowingly again paid his rent to the owner. Then the owner is entitled to give him that money back under section 72 .

So these are the different sections which come under the quasi contracts which are not actually contracts but resembles as contracts and can be legally enforceable by law.

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

If you are interested in participating in the same, do let me know.

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The copyright of this Article belongs exclusively to Ms. Aishwarya Sandeep. Reproduction of the same, without permission will amount to Copyright Infringement. Appropriate Legal Action under the Indian Laws will be taken.

If you would also like to contribute to my website, then do share your articles or poems at adv.aishwaryasandeep@gmail.com

We also have a Facebook Group Restarter Moms for Mothers or Women who would like to rejoin their careers post a career break or women who are enterpreneurs.

We are also running a series Inspirational Women from January 2021 to March 31,2021, featuring around 1000 stories about Indian Women, who changed the world. #choosetochallenge

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