NOTES


CA-Foundation > Business Laws > The Indian Contract Act, 1872 - Quasi Contracts (Old & New)

Zayn rent out his house situated at Mumbai to Lalit for a rent of ₹ 10,000 per month. A sum of ₹ 5 lakh, the house tax payable by Zayn to the Municipal Corporation being in arrears, his house is advertised for sale by the corporation. Lalit pays the corporation, the sum due from Zayn to avoid legal consequences. Referring to the provisions of the Indian Contract Act, 1872 decide whether Lalit is entitled to get the reimbursement of the said amount from Zayn.



Ans.
Lalit is entitled to reimbursement from Zayn u/s 69 of Contract Act since he is an interested party.
Right to recover money paid for another person [Sec. 69]
A person who has paid a sum of money which another is obliged to pay, is entitled to be reimbursed by that other person provided the payment has been made by him to protect his own interest.
Example: B holds land in Bengal, on a lease granted by A, the Zamindar. The revenue payable by A to the Government being in arrears his land is advertised for sale by the Government. Under the revenue law the consequences of such sale will be annulment of B's lease. B to prevent the sale and the consequent annulment of his own lease pays to the Government the sum due from A. A is bound to make good to B the amount so paid.
Conditions: The following are the conditions mentioned in Sec. 69.
1. The payment made should be bona fide for the protection of one's interest.
2. The payment should not be a voluntary one.
3. The payment must be such as the other party was bound by law to pay.

PreviousNext


Notes of The Indian Contract Act, 1872 - Quasi Contracts (Old & New)



  1. What do you understand by ‘Quasi-Contract’? Discuss.
    see in detail

  2. Explain the meaning of ‘Quasi-Contracts’. State the circumstances which are identified as quasi contracts by the Indian Contract Act, 1872.
    see in detail

  3. Zayn rent out his house situated at Mumbai to Lalit for a rent of ₹ 10,000 per month. A sum of ₹ 5 lakh, the house tax payable by Zayn to the Municipal Corporation being in arrears, his house is advertised for sale by the corporation. Lalit pays the corporation, the sum due from Zayn to avoid legal consequences. Referring to the provisions of the Indian Contract Act, 1872 decide whether Lalit is entitled to get the reimbursement of the said amount from Zayn.
    see in detail

  4. Yogesh holds agricultural land in Gujarat on a lease granted by Ramesh, the owner. The land revenue payable by Ramesh to The Government being in arrear his land is advertised for sale by the Government. Under the Revenue law, the consequence of such sale will be termination of lease. Yogesh, in order to prevent the sale and the consequent termination of his own lease, pays the Government, the sum due from Ramesh. Referring to the provisions of the Indian Contract Act, 1872 decide whether Ramesh is liable to make good to Yogesh, the amount so paid?
    see in detail

  5. Anmol promises to pay Biren ₹ 1 lakh if Biren's ship does not return. When can this promise be enforced?
    see in detail


CA-Foundation - Business Laws:

CA-Foundation: