Quasi Contracts

Introduction

A quasi-contract is based upon ' doctrine of unjust enrichment'.

According to this doctrine, a person shall not be allowed to enrich himself unjustly at the expense of another. Duty and not an agreement or promise is the basis of such contracts. It may be noted that the suit for damages for breach of the contract can be filed in the case of a quasi-contract similar to the case of a completed contract.

Section 68 to 72 of the Indian Contract Act, 1872 deals with quasi-contractual obligations. They are as follows- 

1. Claim for necessaries supplied to a person incapable of contracting or on his account. section 68-  This provision has already been considered in connection with minor's agreements in the chapter of "Capacity of Parties." To recapitulate it may be stated here that although agreements by minors, idiots, lunatics etc. are void ab-initio, Section 68 is an exception to this rule. It provides that their estate are liable to reimburse the supplier who supplies them or to someone whom they are legally bound to support with 'necessaries' of life. 

2. Reimbursement of person paying money due by another, in payment of which he is interested.section 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.

This section is applicable if the following conditions are fulfilled- 

A. The plaintiff should be interested in making the payment to protect his interest and the payment should not be a voluntary one. Moreover, the payment must have been done in good faith.

B. The payment must be such as another party was bound by the law to pay.

C. The payment must not be such as the plaintiff himself was bound to pay. He should only be interested in making the payment.

3. The obligation of the person enjoying the benefit of non- gratuitous act. Section 70- Where a person lawfully does anything for another or delivers anything to him, not intending to do gratuitously and the other person enjoys the benefit, the latter is bound to compensate the former.

The following conditions must be fulfilled-

A. The thing must have been done lawfully in good faith

B. The thing must have been done by a person not intending to act gratuitously.

The person for whom the act is done must have enjoyed the benefit of the act.

4. Responsibility of finder of goods. Section 71- A person who finds out goods belonging to another and takes them into his custody, is subject to the same responsibility as a bailee. 

The finder of goods is entitled to sell the goods if the owner cannot be found out or if he refuses to pay lawful charges to the finder in the following conditions- 

A. When the thing is in danger of perishing or of losing the greater part of its value 

B. When the lawful charges of the finder amount to at least two-thirds of the value of goods found.

5. Liability of person to whom money is paid, or thing delivered by mistake or under coercion. Section 72- if one party under mistake pays to another party money which is not due by contract or otherwise, such money must be repaid.