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Quasi Contracts

Under certain circumstances, person may be required to fulfill an obligation to another person which is imposed by law on him. Such obli8gations are termed as quasi contracts, because although there is no contract or agreement between the parties, they are put in the same position as if there were a contract between them.

A quasi contract rests on the ground of equity that a person shall not be allowed to enrich himself unjustly at the expenses of another. Strictly speaking, quasi contracts are not contracts at all.

A contract is intentionally entered into whereas a quasi contract is created by law.

Types Of Quasi Contracts

Supply Of Necessaries:


Section 68 of Indian contract Act, 1872, provides that “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 but at reasonable rate and not at agreed rate”.

Payment By An Interested Person

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 another. However, it is necessary to prove that:

a. The payment made by the person should be bona fide for the protection of his own interest.

b. The payment should not be a voluntary payment.

c. The payment must be one which the other party was bound by law to pay.

d. The payment should be made to a third party.

Obligation To Pay For Non-Gratuitous Acts:

Where a person lawfully does anything for another person, or delivers anything to him, not indenting to do so gratuitously, and other person enjoys the benefits there of, the latter is bound to make compensation to the former in respect of, or to restore the thing so done or delivered.

It thus follows that for a suit to succeed, the plaintiff must prove: (i) That he had done the act or had delivered the thing lawfully; (ii) that he did not do so gratuitously; and (iii) That the other person enjoyed the benefit.

 Responsibility Of Finder Of The Goods
  • Right of lien means to retain property until debt is paid off.
  • Right to sue for reward, where the promise has promised to pay.
  • Right for sale of goods or keep with him in the following cases.
  • Where the goods are perishable.
  • The lawful charges of keeping the goods exceed two-third of their value.
  • If the owner cannot be found after reasonable search.
  • Where owner refuses to pay for lawful expenditure by the finder.
  • Duties of finder of goods.
  • Taking due care of goods.
  • Finding the owner of the goods.
  • Returning the goods to the owner.
  • Should not use the goods for his own purpose.
  • Should not mix up goods with his own goods.
  • Should return the increases in goods to the true owner.
  • Should make reasonable efforts to find the true owner.

Mistake Or Coercion

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

Failure To Discharge Obligations Created By Quasi Contracts

Section 73 of Indian contract Act, 1872, provides that, an obligation created by quasi contract is on the same footing as obligation created by a valid contract actually entered into by the parties concerned. If a person fails to discharge these obligations, then it is treated as a breach of contract and he shall be liable to pay the compensation for the breach of contract.





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