INTRODUCTION

A victim slips on a banana peel and falls down

a flight stairs. Doctor a stranger who

happened to be passing by, administers

emergency treatment to the unconscious

victim.

Now when the victim wakes up, doctor asks

for his fees. Can he do that?

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 or court, not by agreement of the parties

Court creates quasi contracts to avoid the unjust enrichment of a party in a dispute for payment of a good/service

Section 68 to 72 deals with “certain relations resembling those created by a contract” under Indian Contract Act, 1972

SECTIONS IN LAW

SECTION 68: SUPPLY OF NECESSARIES

If a person, incapable of entering into a contract or anyone whom

he is legally bound to support, is supplied by the 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

ILLUSTRATIONS

A supplies B, a lunatic, with necessaries suitable to his

condition in life. A is entitled to be reimbursed from B's

property

A minor studying at Harvard is supplied with clothing

along with a laptop. He already had enough cloths with

him. It was held that the laptop was not a necessary

article and so he was not liable to pay for them.

SECTIONS IN LAWSECTION 69: PAYMENT BY INTERESTED

PERSON

A Landlord lends his premises to a tenant for 2 years. The tenant

unaware of the fact that the electricity bill is due for payment for

last 2 months for the said premises, takes the same on rent. After

sometime he receives regarding the due bills to be paid within 2

days or else electricity will be discontinued. The tenant without

asking the lender pays the bill. When the tenant asks the landlord

for reimbursement for the amount, he refuses to do so. Landlord

contends that he had no intentions to pay the bills and the tenant

had no duty towards the payment of bill. Is the tenant liable to be

reimbursed the amount?

CASE

A person who is interested in

the payment of money,

which another is bound by

law to pay, and who

therefore pays it, is entitled to

be reimbursed by the other

• Payer must be interested in

making payment

• But should not be bound to pay

• Defendant should be under a

legal compulsion to pay

SECTIONS IN LAWSECTION 70: LIABILITY TO PAY FOR NON

GRATUITOUS ACTS

A village was irrigated by a tank. The government effected certain repairs to the

tank for its preservation and had no intention to do so gratuitously for the

Zamindars. The Zamindars enjoyed the benefits thereof. Are they Liable to pay

to the government?

CASE – damodar murali & Secretary of state for India 1894

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 compensation to the former in respect of, or to restore, the things so done or delivered

• The thing 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

benefit of the act

SECTIONS IN LAW

SECTION 71: FINDER OF GOODS

DOO(H) picks up a diamond on the floor on LORD's(F) shop. He hands it over to

LORD to keep it till true owner is found out. No one appears to claim it for quite

some weeks in spite of the wide advertisement in the newspapers by LORD.

DOO tendered to LORD the lawful expenses incurred in finding the true owner

and requested him to return the diamond to him. LORD refused to do so. Is LORD

bound to return the diamond?

CASE – HOLLINS and fowlers

A person, who finds goods to another and takes them into his custody, is subject to the same responsibilities as a Bailee. Thus in respect of duties and liabilities, a finder is treated at par with Bailee. The finder’s position is therefore considered along with bailment.

• He must try to find out the owner

and must not appropriate the

property for own use(sec 403

IPC)

• He must take care of the goods

as much as a man of ordinary

prudence will for his own good.

• He can sell the goods if the item

is perishable, owner is not found

or refuses to pay the lawful

amount.

SECTIONS IN LAW

SECTION 72: MISTAKE or COERCION

An insurance company paid the amount on a policy under the mistake that the

goods had been destroyed by a peril (threat) insured against. The goods in fact

had been sold. Can the insurance company recover the amount?

CASE – Norwich etc. society ltd. vs. price W.H. LTD 1934

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

“The Payment by Mistake” in

section 72 must refer to a payment

which was not legally due and

which could not have been

enforced: the “Mistake” is on

thinking that the money paid was

due when in fact, it was not due

Questions

around the

discussion?