QUASI CONTRACTS

Group 9

Abhishek Dwivedi PGPM508_09
Ajit Kumar PGPM508_20
Gautam Pradhan PGPM508_32
Gagan Seth PGPM508_44
Chandra M Verma PGPM508_56

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What Are Quasi Contracts
Quasi means almost or apparently but not really or as if it were

A quasi contract is a contract that exists by order of a court, not by
agreement of the parties

Courts create quasi contracts to avoid the unjust enrichment of a party in
a dispute over payment for a good or service

Sections 68 to 72 deals with "certain relations resembling those created
by contract" under Indian contract act, 1872
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Illustration
A victim slips on a banana leaf and falls down a flight stairs

Doctor a stranger who happened to be walking by , administers emergency
treatment to unconscious victim

Doctor does not enter into a contract with victim

Doctor could now recover fee for her services on the theory of unjust enrichment

This is where Quasi-contract come into play. The court in this case creates a
fictional contract to grant benefits to the doctor

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Sections In Law
The sections in law which cover the Quasi Contracts are
Supply of necessaries (section 68)

Payment of lawful dues by interested person (section 69)

Person enjoying benefit of a gratuitous act (section 70)

Finder of goods (section 71)

Goods or anything delivered by mistake or coercion (section 72)

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Quasi Contract
Contracts results from the will of
the parties expressed with a view
to create an obligation
Quasi Contract is not a
contract at all but merely a legal
fiction.
It cannot be used when full-
fledged contract exists
Contract is an agreement There is no agreement
It has certain essential elements Essentials for formation of a
contract are absent
It is a full fledged contract and is
binding
It is not a full fledged contract
Contract
Differences
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Section 68
Claim for supply of necessaries to person incapable of contracting
Necessaries:
Things suited to the conditions of incompetent parties
Includes articles required to maintain a particular person in the state and degree
in the life in which he is
Articles without which an individual cannot reasonable exist
Illustration
A supplies B, lunatic with necessaries suitable to his condition of life. is
entitled to be reimbursed from Bs property
A minor studying at Cambridge was supplied with clothing, including
eleven waist-wats. He already had sufficient clothing with him. It was held
that the waist-wats were not necessary articles and so he was not liable to
pay for them.

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Section 69
Reimbursement of money paid, in which he is interested
Essentials:
There must be a person who is bound to make a payment by law. The person paying
must himself not be bound to pay. When he is jointly liable to pay, payment by him
would not give him the right to recover under this section
There must be another person interested, not bound by law, in such payment being
made and interest should exist at the time of payment.
The payment must be made bonafide for the protection of ones own interest
Illustration
A and B have been fined jointly Rs500 for selling adulterated ghee. A alone pays the
amount of fine in good faith, A cannot later claim contribution from B under Section 69.
Notice that although B was bound by law to pay and A has paid Bs share in good faith,
yet A cannot recover as he himself was bound to make the payment, being jointly liable
with B and was not simply interested in making the payment.
[A can, however, claim contribution form B under Section 43.]

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Section 70
Obligation of a person enjoying benefits of non-gratuitous act
Person lawfully does anything for another person
Delivers anything to him non-gratuitously
Latter is bound to make compensation or restore the thing so done or delivered
The thing must be done lawfully
The person for whom the act is done must enjoy the benefit of it.



A, a tradesman, leaves goods at Bs house by mistake. B treats the goods
his own. He is bound to pay for them
A saves Bs property from fire. A is not entitled to compensation from B, if the
circumstances show that he intended to act gratuitously.

Illustration
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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 subject to the same responsibility as a bailee. The finders
position, therefore, has been considered along with bailment


H picked up a diamond on the floor of Fs shop and handed it over to F to
keep it till the owner appeared
True owner could not be searched
After the lapse of some weeks, H tendered to F the lawful expenses incurred
by him for finding the true owner and an indemnity bond and requested him to
return the diamond to him (i.e., H). F refused to do so
F must return the diamond to H as he was entitled to retain the goods as
against everybody except the true owner (Hollins Vs FowlerS)

Illustration
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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:
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 2/3
rd
of the value of commodity found


Section 71 - Responsibility of finder of goods
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Section 72 - delivered by mistake or coercion
Liability of person to whom money is paid, or thing delivered by
mistake or under coercion
What does it mean
A person to whom money has been paid, or anything delivered by mistake
or under


A and B jointly owe Rs. 1,000 to C. A alone pays the amount to C and B not
knowing this fact, pays Rs. 1,000 over again to C. C is bound to repay the
amount to B.
A railway company refuses to deliver certain goods to the consignee except
upon the payment of an illegal charge for carriage. The consignee pays the
sum charged in order to obtain the goods. He is entitled to recover so much
of the charge as was illegally excessive.


Illustration