Quasi Contracts

Quasi Contracts

What is Quasi Contract ?? Contract is a result of an agreement enforceable by law In some cases there is no offer, no acceptance, no consensus. No intention on the part of parties to enter into contract and still the law, from conduct and relationship of parties, implies a promise imposing obligation on one party and conferring a right in favour of the other. These are Quasi contracts

Contract Contract

Quasi

Contracts results from Quasi contract is an the will of the parties obligation resembling expressed with a view that created by a to create an obligation contract Contract is an agreement

There is no agreement

It has certain essential Essentials for elements formation of a contract are absent It is a full fledged It is not a full fledged contract and is binding contract

Section 68 “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 – Section 68  Kiran supplies Ashok, a lunatic, with necessaries suitable to his condition in life. Kiran is entitled to be reimbursed from Ashok’s property  Vikram supplies the wife and children of Amit, a lunatic, with necessaries suitable to their condition in life. Vikram is entitled to be reimbursed from Amit’s property

What are necessaries ? 

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 he cannot reasonably exist.

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Debt incurred for performing funeral obligations of the father of a minor is a ‘necessity’

Section 69 “Reimbursement of person paying money

due by another, in payment of which he is interested” Definition -

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 – Section 69 • • •

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Lalu holds land in Bihar, on a lease granted by the zamindar Patil. The revenue payable by Zamindar Patil to the Government being in arrear, his land is advertised for sale by the Government. Under the revenue law, the. consequence of such sale will be the annulment of Lalu’s lease. Lalu, to prevent the sale and the consequent annulment of his own lease, pays to the government the sum due from Zamindar Patil. Zamindar Patil is bound to make good to Lalu the amount so paid.

Pre conditions.. 

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The plaintiff should be interested in making the payment in order to protect his own interest and the payment should not be voluntary one. Moreover, the payment must have been done in good faith and not to manufacture evidence of title to land or any other thing. The payment must be such as the other party was bound by law to pay. The payment must not be such as the plaintiff himself was bound to pay. He should only be interested in making the payment. A suit under this section is maintainable only for reimbursement and not for contribution (Ramkrishna vs Radhakrishana).

Section 70

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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.”

Section 70

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For giving rise to a right of action under this section, the following conditions must be fulfilled: Action must have been done lawfully in good faith. Action must have been done by a person not intending to act gratuitous. The person for whom the action is done must have enjoyed the benefit of the act.

Section 70

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Illustrations Kantibhai, a tradesman leaves goods at Sharat’s house by mistake.Sharat treates those goods as his own. Sharat is bound to pay to Kantibhai for them. Viren saves Pushpam’s property from fire. Now Viren is entitled to be paid, provided the circumstances show that he did not intend to act gratuitously. When a coolie takes the luggage at railway station without being asked by Priyanka, and if Priyanka does not object to that then she is bound to pay for the coolie’s service.

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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.” Thus, Law between the owner and finder of the goods also implies an agreement and the latter is deemed to be a bailee

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Section 71

: Responsibility of finder of goods

1. Duties of Finder of Goods: • •

He must try to find out “the real owner” of the goods and must not appropriate the property to his own use ( Section 403 IPC ) He must take as much care of the goods as much a man of ordinary prudence would take of his own goods of same bulk, quality and value. (Sec 151 )

2. Rights of finder of Goods: • •

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He is entitled to the possession of the goods till the true owner is found. ( Case : Hollins vs FowlerS) 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 cant 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 “A person to whom money has been paid, or anything delivered, by mistake or under coercion, must repay or return it.”

MISTAKE – A mistake of law as well as a mistake of fact

Section 72 – Illustrations

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1. Mr. A receives a fruit parcel by mistake on his birthday. He consumes it thinking it is a gift. A. He assumes the liability to return the parcel or pay for the same.

2. Mr.X owes Mr.Y Rs. 50 /-. He pays Mr.Z by mistake. A. Mr. Z assumes the liability to return the amount to Mr.X. However, Mr. Y cannot recover the amount from Mr.Z in the absence of a clear contract.

The End 

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