Quasi-contract is a binding obligation imposed by courts to prevent injustice or unjust enrichment where the technical requirements of a contract are not met. It involves a party being enriched at another's expense in an unjust manner. The document outlines 5 situations where quasi-contracts are recognized by law, including supplying necessities to incompetent persons, payment by an interested party, non-gratuitous acts, finder of goods responsibilities, and money/items paid by mistake or coercion. Examples are provided for each to illustrate how courts establish quasi-contractual obligations.
2. Quasi contact is a binding obligation that is
imposed by the courts to avoid injustice or
unjust enrichment
3. An implied-in-law contract imposed by the courts
to prevent injustice
A special form of contract that lacks mutual assent
of the parties but which imposed on the parties by
the courts to avoid injustice
A situation in which there is an obligation as if
there was a contract although the technical
requirements of a contract have not been fulfilled.
It is also called as implied-in-law contract
4. A party has been enriched by some
benefit
The enrichment is at the expense of
other.
The retention of the enrichment is
unjust.
5. 1. Supply of necessaries to person
Incapable of contracting. (sec. 68)
2. Payment by interested person.(sec. 69)
3. Obligation to pay for non-gratuitous
acts (sec. 70)
4. Responsibility of finder of goods
(sec. 71)
5. When money is paid or things delivered
by mistake or under coercion (sec. 72)
6. Any person supplying necessaries of life to
person who are incompetent to enter into
contract is entitled to claim the price from
the other person’s property.
Similarly where money is paid to such
person for the purchase of necessaries
, reimbursement can be claimed
7. The following points must be considered-
(i) The things supplied must come within the category
of necessaries.
(ii) Necessaries should be supplied only to such person
to whom he is legally bound to support e.g.
wife, children
(iii) He is liable to pay only a reasonable price, not the
price which he has agreed to pay
8. “A person who is interested in the payment of money
which another is bound by law to pay, is entitled to be
reimbursed by the other.”
9. In this case B purchases A`s agricultural
land. On that land cess is in arrears for a
longer period which are actually to be
cleared by A, But B pays that amount. Here
Court creates a quasi contract between them
under.
Section 69 and thus capacitates B to recover
that amount from A.
10. Plaintiff should be interested in making
payment to protect his interest. The interest
should be legally recognizable.
It is necessary that the plaintiff himself
should not be bound to pay.
The defendant should have been ‘bound by
law’ to pay the money.
The plaintiff should have made the payment
to another person.
11. When one party Conducts an activity
and its benefit is attained by another
party, then also Court can create a
quasi Contract.
12. In this case A is resident of a Village. The
local government conducts repairs to the
tank situated at A`s village. As a result A gets
benefited because the surrounding lands
belong to A. Here Court creates a Quasi
Contract and decides that A has to bear cost
of repairs
13. A person, who finds goods belonging to some
another and takes them into his custody, is
subject to the same responsibility as a bailee.
Thus in respect of duties and liabilities, a finder
is treated at par with bailee. The finder’s
position is therefore considered along with
bailment.
14. In this case B finds a diamond at A`s shop
and hands it over to A, requesting A to send
the diamond to true owner. True owner is
not found. When true owner is not found.
Finder gets the title. No one can claim share
in it. Here court creates a bailment contract
between B and A and thus capacitates B to
get diamond back.
15. He can sue the owner for the specific reward
announced for the return of goods and recover the
reward.
He is entitled to recover his lawful charges incurred in
preserving the goods and in order to find the true
owner.
He can sell the goods if
The goods are perishable in nature
His lawful charges exceed two third of the value of
goods.
When after due search, the true owner can not be
found.
16. A person to whom money has been
paid or anything delivered by mistake
or under coercion must repay or return
it.
17. In this case Mr. A pays Sales tax by
mistake though he is need to pay. Here
Court creates a quasi Contract and
capacitates A to recover that amount