Tuesday 21 February 2017

Quasi contracts

When a person gets some unjust enrichment or benefit, he is required by law to pay for it. Such a renedy is known as quasi-contract or relations resembling those created by contract. The Indian Contract Act,1872, recognizes five kinds of such relations.
(1) supply of necessaries
Section 68 provides that when a person supplies necessaries to another who is incompetent to contract or to someone he is legally bound to support, the supplier is entitled to recover the price from the property of the incompetent person.
A person supplying necessaries to a minor is covered under this head.
(2) payment by interested person
Section 69 provides that when a person who is interested in the payment of money which another is bound to pay by law, and therefore pays it, he is entitled to be reimbursed by the other.
The person himself should not be bound to pay, he should only be interested in the payment in order to protect his own interests.
(3) non-gratuitous acts
Section 70 provides that when a person lawfully does something for someone or supplies something to him, not meaning it to be done gratuitously and the other enjoys the benefits from it, the latter is bound to pay for it or restore the thing done or delivered.
In this case, it is important to satisfy the conditions that the person should be  lawfully bound to do something, he should do it not intending it to be gratuitous and the other person should enjoy the benefits from such an act.
(4) finder if goods
Section 71 states that a person who finds goods belonging to another, and takes them into his custody, is subject to the same responsibility as a bailee.
(5) mistake or coercion
Section 72 states that a person to whom money has been paid, or anything delivered by mistake or under coercion, must repay or return it.
It is immaterial whether the mistake is of fact or of law.
In all these cases, obligations similar to contractual liabilities arise and the person enjoying the benefits of the act is bound to pay for them.

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