QUASI CONTRACT

Name: Piyush
Sankhyan
Roll no. : 2024BCS1009
Subject : Business Law
  Quasi contract: Meaning

A Quasi contract is transaction in which there is no

contract between the parties ; the law creates certain
rights and obligations between them which are similar to
those created by contract.
A Quasi Contract is thus not a contract at all because the
essential elements for the formation of a contract are
missing. It is an obligation imposed by law upon a person
for the benefit of another even in absence of contract.
Thus, they are called implied or constructive contract.
  Features of Quasi Contract

A Quasi contract is not a real contract.

It is not based on offer and acceptance rule.
It does not arise from any formal agreement but it is
imposed by law.
The contract comes into being after a party has received
money or some benefit.
This type of contract is valid in case of particular
individual only.
 Difference between Quasi contract and Contract

Quasi contract does not A contract possesses all

possess all the essentials essentials of a valid
of valid contract. contract.
Obligations are imposed by Obligations are actually
law. created by parties.
Agreement is the basis of
Duty is basis of such such contract.
contract.
  Types of Quasi Contract
 Sections 68-72 of the Indian contract act describe the various
types of quasi contracts as under:
 Supply of necessities to person incompetent to contract (Sec 68)
 Payment by a interested person (Sec 69)
 Obligation to pay for non-gratuitous (obtained without charge or
payment) acts(Sec 70)
 Responsibility of finder of goods(Sec 71)
 Payment of money or delivery of goods by mistake or under
Coercion(Sec 72)
  Supply of necessities to person
incompetent to contract-
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.
Example: A supplies B, a lunatic with necessaries suitable to
his condition in life. A is entitled to be reimbursed from B
property.
  Payment by interested
person
A person who is interested in payment of money, which
another is bound by law to pay, and who therefore pays it,
is entitled to be reimbursed by the other.
Example: A holds land in Bengal, on a lease. B is the
owner of the land. The land revenue payable by B to the
government is in the arrears and therefore the
government advertised the land for sale to recover the
dues. To prevent the sale of land A pays the arrears of the
land revenue. In this case B is bound to reimburse the
amount to A.
 Payment for 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 of
thereof, the later is bound to make compensation to the
former in respect of, or, to restore the thing so done or
delivered.
Example: A, a tradesman, leaves his good at B’s house by
mistake. B treats the goods as his own and uses them. B
is bound to pay for the goods.
  Responsibility of Finder of
Goods
A person who finds the goods belonging to another
person, and takes them into his custody is subject to
same responsibility as a bailee. He must take reasonable
care of the goods and keep them in sound condition and
try to find out its true owner.
  Payment of delivery of goods
by mistake or under Coercion
A person to whom money has been paid or anything
delivered by mistake or under coercion must repay or
return it.
Example: A and B jointly owe Rs. 5000 to C. A alone pays
this amount to C. B not knowing this again pays Rs. 5000
to C. In this case C is bound to repay Rs.5000 to B as this
amount is paid to him by mistake.
 PREVIOUS YEAR QUESTION

Q: A quasi - contract is not a contract at all. it is an obligation which the law

creates. Explain the statement as recognized under Indian Contract Act.
ANS:This statement reflects the essence of quasi-contracts, which are not
contracts in the traditional sense but are obligations imposed by law to
prevent unjust enrichment and ensure fairness. Under the Indian Contract
Act, 1872, quasi-contractual obligations are recognized in Sections 68 to 72,
which address specific scenarios where equity and justice demand
intervention. A quasi-contract is not a "contract" in the strict sense, as it
lacks mutual consent. However, the law imposes obligations in certain
circumstances to uphold fairness and prevent unjust enrichment. Sections 68
to 72 of the Indian Contract Act, 1872, codify such obligations, ensuring
equity in legal relationships. Thus, quasi-contracts reflect the role of law in
creating remedies where formal agreements do not exist.
Q: Define certain relations resembling those created by
contracts and discuss any two of them in detail?
Ans: Under Chapter V (Sections 68 to 72) of the Indian
Contract Act, 1872, the term refers to situations where the
law imposes contractual obligations on a party to prevent
unjust enrichment, even though no formal contract exists
between the parties. These obligations arise from equity,
justice, and good conscience, and are commonly referred to
as quasi-contracts. The key principle underlying these
provisions is that no person should be allowed to enrich
themselves unfairly at the expense of another.
THANK YOU