Quasi contracts are obligations that are imposed by law even though there is no actual agreement between the parties. They are treated as contracts for legal purposes. There are several types of quasi contracts described in the document, including supply of necessaries, payment by an interested person, obligations to pay for non-gratuitous acts, responsibility of finders of goods, and mistakes or coercion. The key elements are that one party receives a benefit without intending to do so for free, and the law then requires compensation or repayment as if there were a contractual agreement.
Quasi contracts are obligations that are imposed by law even though there is no actual agreement between the parties. They are treated as contracts for legal purposes. There are several types of quasi contracts described in the document, including supply of necessaries, payment by an interested person, obligations to pay for non-gratuitous acts, responsibility of finders of goods, and mistakes or coercion. The key elements are that one party receives a benefit without intending to do so for free, and the law then requires compensation or repayment as if there were a contractual agreement.
Quasi contracts are obligations that are imposed by law even though there is no actual agreement between the parties. They are treated as contracts for legal purposes. There are several types of quasi contracts described in the document, including supply of necessaries, payment by an interested person, obligations to pay for non-gratuitous acts, responsibility of finders of goods, and mistakes or coercion. The key elements are that one party receives a benefit without intending to do so for free, and the law then requires compensation or repayment as if there were a contractual agreement.
Quasi contracts are obligations that are imposed by law even though there is no actual agreement between the parties. They are treated as contracts for legal purposes. There are several types of quasi contracts described in the document, including supply of necessaries, payment by an interested person, obligations to pay for non-gratuitous acts, responsibility of finders of goods, and mistakes or coercion. The key elements are that one party receives a benefit without intending to do so for free, and the law then requires compensation or repayment as if there were a contractual agreement.
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QUASI
CONTRACT S
Meaning
Under certain circumstance, there is no
contract between the parties, even then a person may receive a benefits to which the law regards another person is entitled for or person may receive a benefits foe which the law consider he should pay to the other person. Such relationship are termed as Quasi contract because although there is no formal agreement between the parties they are put in the same position as if there were a contract between them.
According to Indian contract
act Quasi contract are those relation where there is no contract or agreement between the parties, but the law consider it to be contract
Kinds of Quasi contract (sec 68 to 72)
Supply of necessaries(sec 68)
Payment by an interested person (sec 69) Obligation to pay for non gratuitous (sec 70) Responsibility of finder of goods (sec71) Mistake of coercion (sec 72)
Supply of necessaries (sec
68)
If a person, incapable of entering into a
contract; or anyone whom he is 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. Example: A supplies B a lunatic with necessaries suitable to his condition in life A entitled to be reimbursed from B
2. Payment by an interested person sec
69
A person who is interested in the payment of money
which another is bound by the law to pay and who therefore pay it, is entitled to be reimbursed by the other. Example: B holds a land in bangal, on lease granted by A, 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 consequence of the such sale will be annulment of Bs lease. B to prevent the sale and the consequent annulment of his own leave pays to the government the sum due from A. A bound to make good to B the amount so paid.
Essentials required of sec
69
The payment made should be bona fide for
the protection of ones interest. Example: P left his carriage on Ds Premises. Ds Landlord seized the carriage as distress for rent. P paid the rent to obtain the release of his carriage. Held, P could recover the amount from D. The payment should not be voluntary one. The payment must be such as the other party was bound by the law to pay.
Obligation to pay for non- gratuitous acts
sec 70
When a person lawfully does anything
for another person or delivers to him, not intending to do so gratuitously and such other person enjoys the benefits thereof, the latter is bound to make compensation to the former in respect of, or to restore, the things so done or delivered. A a trade man leaves goods at Bs house by mistake. B treats the goods as his own. He is bound to pay for them to
Before any right of action under
sec 70 arise, three conditions must be satisfied
The things must have been done lawfully
The person doing the act should not have intended to do it gratuitously. The person for whom the act is done must have enjoyed the benefits of the acts.
Damodar mudaliar v Secretary of state of India 1894
A villager was irrigating by a tank. The government affected certain repairs to the tanks for its preservation and had no intention to do gratuitously for the zamindars. The zamindars enjoyed the benefits thereof. Held they were liable to contribute.
Responsibility of finders of goods sec 71
A person who finds goods belonging to
another and takes them into his custody. He is bound to take care of the goods . If he does not, he will be gility of wrongful conversion 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.
The finder can sell the goods in the
following cases:
When the things found is in danger of
perishing. When the owner cannot, with reasonable diligence, be found out. When the owner is found out, but he refuse to pay the lawful charges of the finder When the lawful chargers of the finder, in respect of the thing found amount to two-third of the value of the thing found sec 169
Mistake or coercion sec 72
A person to whom money has been paid or
anything delivered by mistake or coercion must repay pay or return it to the person who paid it by mistake or under coercion. Example: A pays some money to B by mistake, which was really due to c B must refund money to A. C However cannot recover the amount from B as there is no contract between B and C. Thus quasi contract are not in fact contract but the law impose certain obligation and protect the interest of innocent parties.
Quantum meruit
Quantum meruit Literally means as
much as earned or as much as is merited. When a person has done some work under a contract and the other party repudiated the contract or some event happens which makes the further performance of the contract impossible then the party who has performed the work can claim remuneration for the work he has already done.
The claims for quantum arise in the
following cases.
When an agreement is discovered to be void sec 65.
When something is done without any intention to do so gratuitously sec 70 When there is express or implied contract to render receive but there is no agreement as to remuneration. When the completion of the contract has been prevented by the act of the other party to the contract. When contract is divisible When an individual contract is completely performed but badly.
Compensation for failure to discharge
obligation created by quasi contract.
When an obligation created by a quasi
contract is not discharge, the injured party entitled to receive the same compensation from the party in default, as if that person had contracted to discharge it and had broken his contract.
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