quasi contract(68 72)

8/12/2019 Quasi Contract(68 72)

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QUASI CONTRACTS

Group 9

Abhishek Dwivedi PGPM508_09

Ajit Kumar PGPM508_20Gautam 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 createdby contract" under Indian contract act, 1872


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IllustrationA victim slips on a banana leaf and falls down a flight stairs

Doctor a stranger who happened to be walking by , administers emergencytreatment 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-contractcome into play. The court in this case creates afictional contract to grant benefits to the doctor


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Sections In LawThe 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 ContractContracts 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 68Claim for sup ply o f necessar ies to person inc apable of con tract ing

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 Bsproperty

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 topay for them.


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Section 69Reimbursement of m oney p aid, in which he is interested

Essentials:

There must be a person who is bound to make a payment by law. The person payingmust 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 onesown interest

IllustrationAand 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 Bsshare 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 70Obl igat ion of a person enjoying b enef i ts of no n-gratu i tous 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 Bshouse by mistake. Btreats the goods

his own. He is bound to pay for them

AsavesBs

property from fire. Ais not entitled to compensation from B, if thecircumstances show that he intended to act gratuitously.

Illustration


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Section 71 - Responsibility of finder of goodsA person w ho f inds g ood s belonging to another and takes them into his

custody, is subject to the same responsibility as a bailee. The finders

posit ion , therefore, has been cons idered along with b ai lment

Hpicked up a diamond on the floor of Fsshop and handed it over to Fto

keep it till the owner appeared

True owner could not be searched

After the lapse of some weeks, Htendered to Fthe 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). Frefused to do so

Fmust return the diamond to Has he was entitled to retain the goods asagainst 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 prudencewould 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 orcompensation 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 2/3rdof the value of commodity found

Section 71 - Responsibility of finder of goods


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Section 72 - delivered by mistake or coercionLiabil i ty of p erson to whom money is paid, or th ing delivered by

mistake or under co erc ion

What does it meanA person to whom money has been paid, or anything delivered by mistake

or under

Aand Bjointly owe Rs. 1,000 to C. Aalone pays the amount to Cand Bnot

knowing this fact, pays Rs. 1,000 over again to C. Cis 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 thesum charged in order to obtain the goods. He is entitled to recover so much

of the charge as was illegally excessive.

Illustration

quasi contract(68 72)

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