QUASI CONTRACT
INTRODUCTION
Chapter V containing sections 68 to 72 of the Indian Contract Act, 1872 lays down the provisions
relating to "Quasi Contracts" or "Certain relations resembling those created by contracts”.
MEANING
● The term 'Quasi' is a Latin word, which means "as if' or "Similarly".
● Quasi contract is not a real contract entered into by parties intentionally. It resembles a
contract, in which law imposes an obligation on a person to perform an obligation on the
ground of equity.
● Quasi contract is based on the principle of equity that "A person shall not be allowed to enrich
himself unjustly at the expense of another".
DEFINITION
Salmond defines quasi contracts as "There are certain obligations which are not in truth contractual in
the sense of resting on agreement, but which the law treats as if they were.”
Salient Features
1. Right to a sum of money
2. Imposed by Law and does not arise by agreement of parties
3. Right available only against a particular person or persons
Kinds Of Quasi Contract
1. Supply of necessaries (sec68);
2. Payment by an interested person (Section.69)
3. Obligation to pay for non-gratuitous acts (Section.70)
4. Responsibility of finder of goods (Section.71)
5. Mistake or coercion (Section.72)
1. Supply of necessaries (sec68):
According to Section 68, if a person incapable of entering into a contract or any one whom he
as legally bound to support is supplied by another 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.
Ex: 'A', supplies "B" a lunatic with necessaries suitable to his condition in life. "A" is entitled to
reimburse from B's property.
2. Payment by an interested person (Section.69)
● 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 others.
● The essential requirements of Section. 69 as follows.
a. The payment mode should be bonafide for the protection of one's interest.
b. The payment should not be a voluntary one.
c. The payment must be such that the other party was bound by law to pay.
Ex: "B" holds land in Bengal on a lease granted by the Zamindar. The revenue payable by "A" to the
Government being in arrears his land is advertised for sale by the Government under the Revenue
Law. The sale will be an annulment of "B's lease. "B' to prevent the sale and the consequent
annulment of his own lease pays to the Government the sum due from A. A is bound to make good to
B the amount so paid.
3. Obligation to pay for non-gratuitous acts (Section.70)
When 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 the compensation to the former in respect of or restore, the things done or
delivered.
Ex: "A", a tradesman, rented goods at "B" house by mistake. B treats the goods as his own. He
is hound
to pay for them to A.
4. Responsibility of finder of goods (Section.71)
A person who finds goods belonging to another and takes them into his custody is subject to
the same responsibility as Bailee. He is bound to take as much care of the goods as a man of
ordinary prudence would under similar circumstances take of his own goods of the same bulk,
quality and value. He must also take all necessary measures to trace its owner. If he does not,
he will be guilty of wrongful conservation of the property till the owner is found out, the property
in goods will vest in the finder and he can retain the goods as his own against the whole world
(except the owner).
Ex: "F" picks up a diamond on the floor of ‘G’’s shop. He hands it over to ‘G’ to keep it till the
real owner is found out. No one appears to claim it for quite some week's inspite of wide
advertisement in the newspapers. 'F' claims the diamond from ‘G’ who refuses to return. ‘G’ is
bound to return the Diamond to ‘F’ who is entitled to retain the diamond against the whole
world except the true owner.
5. Mistake or coercion (Section.72)
A person to whom money has been paid, or anything delivered by mistake or under coercion,
must repay or return it to the person who paid it by mistake or under coercion.
Ex: ‘A’ & ‘B’ jointly owe Rs. 100/-to ‘C’. ‘A’ alone pays the amount to ‘C’ and ‘B’ not knowing
this fact pays Rs. 100/- over again to ‘C’. ‘C’ is bound to pay the amount to ‘B’.
Case Law
Kedarnath v. Ajundhia:-
- In this case, money given to the minor for marriage expenses was held to be necessary and was
recoverable.
