Ans.Meaning :
A
quasi-contract is a type of contract in which one party is bound to pay money
in consideration of something done or suffered by the other party. Thus, no
contractual relation exists between the parties, but law makes out a contract
for them and such a contract is called a quasi-contract. The main objective of
the quasi contract is to prevent unjust enrichment or unjust benefit that is no
man should grow rich out of another person’s loss. This theory was originally
propounded by Lord Manifield in the case Moses Vs Macferlan.
Example :
X
supplies certain goods to Y. Y receives and consumes the goods supplied. Y is bound
to pay the price. Y’s acceptance of goods constitutes an implied promise to
pay.
Definition :
Though
the Indian Contract Act, 1872 does not define quasi-contracts, it calls them
relations resembling those of contracts. However, a quasi-contract may be
defined as “a transaction in which
there is no contract between the parties; the law creates certain rights and
obligations between them which are similar to those created by a contract
Features :
1. The quasi contract is imposed by law as it does not
arise from any formal agreement. It is a relation created by law between two
persons and this relation is similar to the relation created by contract.
2. The basis of the quasi contracts are the principles of
justice, equity and good conscience.
3. The quasi contract grants a right on one person and
imposes the liability, on the other person in relation with the advantage that
he has already received.
4. The right granted by a quasi-contract is available
against a particular person or persons only and not against the whole world.
5. When an agreement is created under quasi
contract and is not discharged, the aggrieved party is entitled to receive the
compensation from the party who is in default, as if the person has contracted
to discharge it and has breached the contract.
Types
of Quasi Contract:
Sec. 68 to 72 of the Indian Contract Act, 1872 deal with the following types of
quasi-contract:
1) Claim
for necessaries supplied to person incapable of contracting (Sec. 68) :
If
a person is incapable of entering into a contract, or anyone whom he is legally
bound to support is provided by another person with necessaries suited to his
condition in life, the supplier is entitled to recover the price from the
property of such incapable person
Example:
X supplies the wife and children of Y, a lunatic with necessaries
suitable to their conditions in life. X is entitled to be reimbursed from Y's property.
2) Payment
by an interested person (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.
Example :
The consignee suffered loss due to fire in the wagon during transit. The
insurer made good the loss. The claim was allowed as per Sec. 69.
3) Obligation
to pay for non-gratuitous act (Sec. 70) :
Where 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 exchange of or to restore the thing so done or delivered.
Example: X, a trade man, leaves goods at Y's house by mistake, Y treats the goods as his own. He is
bound to pay X for them.
4) Responsibility
of finder of goods (Sec. 71) :
Under
Sec. 71 of the Act, a person who finds goods belonging to another and takes
them into his custody, is subject to the same responsibility as a bailee.
5) Liability
for money paid or things delivered by mistake or under coercion (Sec. 72) :
At
last Sec. 72 of the Indian Contract Act, 1872 provides that a person to
whom money has been paid, or anything delivered by mistake or under coercion
must repay or return it.
Example: A railway company refuses to deliver
certain goods to the consignee, except upon the payment of illegal charge for
carriage. The consignee pays the sum charged to obtain the goods. He is
entitled to recover so much of the charge as was illegally excessive
