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Business Environment and Law-Law Of Contract (Indian Contract Act 1872)

Quasi Contracts-Law Of Contract

   Posted On :  07.05.2018 10:26 pm

A quasi contract is an obligation or a right created by law. A quasi contract is based on the principle that no person can enrich himself unjustly, at the expense of another.

Quasi Contracts
 
 
A quasi contract is an obligation or a right created by law. A quasi contract is based on the principle that no person can enrich himself unjustly, at the expense of another. If he obtains a benefit which under the circumstances he ought, equitably to pay for it, the law would compel him to make the payment even though there is no contract requiring payment.
 
Following relations created by law, resemble those created by contract:
 
Necessaries Supplied To A Person Incapable Of Contracting: Example: X supplies Y, a lunatic, with necessaries suitable to his conditions in life. X is entitled to be reimbursed from Y’s property.
Payment Of Money Due By Another: (Sec.69) “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.”
Non-Gratuitous Act For Another’s Benefit: (Sec.70) “Where a person lawfully does anything for another person or delivers anything to him not 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 thing so due or delivered”. Example: A Businessman leaves goods at B’s house with the intention of persuading B to buy them. B treats the goods as his own. He is bound to pay A for them.
Finder Of Lost Goods: (Sec. 71) “A person who finds goods belonging to another and takes them into his custody is subject to the same responsibility as a bailee.”
Money Paid By Mistake Or Under Coercion: (Sec.72) “A person to whom money has been paid or anything delivered by mistake or under coercion must repay or return it”. Example: X and Y jointly owe Rs. 1000 to Z. X alone pays the amount to Z and Y, not knowing the fact pays Rs.1000 over again to Z. Z is bound to repay the amount to Y.

Suit Upon Quantum Meruit: The phrase ‘Quantum Meruit’ means as much as earned or ‘in proportion to the work done’. This is a general rule, usually invoked where there is no agreement to pay for the work done.(Sec. 70)

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