Q: Explain in detail what is Quasi Contract? Also explain its different kinds Under contract act 1872.
Introduction:
Most of us are familiar with the term contract , which refers to a legal agreement that binds the parties with duties and obligations. The contracting parties agree to the conditions of the contract, either orally or in writing and such contracts are enforceable in a court of law. .in order to be classified as a valid contract, there must be an offer, acceptance between the parties for a valid consideration; however, there is one type of contract wherein these factors are not needed for the formation of the contract. There is not contract between the parties, till the court creates it. these are quasi contracts that are created by courts to prevent one party from getting unjust enrichment at the expense of the other.
What does quasi contracts mean.
Denotative meanings:
Quasi is a Latin word for “as if, almost, somewhat, to a degree and analogous to”
Connotative meaning:
A quasi contract is an obligation invoked by law in the absence of an agreement. Its purpose is to create a legal duty where, in fact, no agreement was entered into by the parties. Quasi contracts are based on the principle of equity and justice. It simply states that no body shall enrich himself unjustly at the expense of another.
Example:
A is knocked down by a vehicle. B, a stranger, who found A on the road in unconscious state, takes A to doctor. The doctor provides treatment to A, who is In a unconscious state. In such a situation, there is no contract between A and doctor and A claims that he is not liable to pay for the services offered by the doctor, as he was unconscious at the time of treatment and there is no agreement between the two.
Application:
In such a situation, the theory of quasi contract applies. In this case the doctor has spent his valuable time for the treatment of accident victim(A) and so, A is liable to pay for the services of the doctor. If A fails to do so, the court can apply the doctrine of quasi contract and order A to pay. This is to prevent the unjust enrichment of A at the expense of doctor.
Liability:
The main question that arises in such situations is the liability of the defendant. As the aim of this doctrine is to prevent unjust enrichment of one party, at the expense of the other,
The damages are usually restricted to the value of services rendered or the cost of the goods delivered. If the damages exceed that value, the whole concept of quasi contract will be defeated, as it will be unfair for the defendant.
Under contract act 1872
Section 68 to 72 deals with “certain relations resembling those created by contract” under the contract act 1872.There are five kinds of quasi contractual obligations for which brief discussion is discussed below.
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1.Supply of necessaries (sec. 68)
If necessaries are supplied to a person who is incompetent to contract or to someone whom he is legally pound to support, the supplier is entitled to recover the price from the property of the incompetent person. The necessaries must be suited to conditions of life of the incompetent person.
Example1: A supplies B, a lunatic, with necessaries suitable to his conditions in life. A is entitled to be reimbursed from B’s property.
Example 2: A supplies the wife and children of B, a lunatic with necessaries suitable to their condition in life. A is entitled to be reimbursed from B’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, is entitled to be reimbursed by the other.”
Example:
The conditions of liability under this section are:
- 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.
Example:
A holds land on lease granted by B, the zamindar. The revenue payable by B to the Government being in arrear, his land is advertised for sale by the Government. Under the revenue law, the result of such sale will be the annulment of A’S lease. A wants to prevent the sale and his own lease, pays the sum due from B. B is bound to make good to B the amount so paid.
3. Liability to pay for non-gratuitous acts: (sec. 70)
Section 70 states, ”where a person lawfully does anything for any other 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 respect of or to restore the thing so done or delivered.”
Example:
A, a tradesman, leaves goods at B’s house by mistake. B treats the goods as his own. He is bound is bound to pay A for them.
Example:
A saves B’s property from fire. A is not entitled to compensation from B, if circumstances show that he intended to act gratuitously.
4. Responsibility of finder of goods: (sec.71)
“A person who finds goods belonging to another and takes them into his custody, is subject to the same as a bailee.”
Thus in respect of duties and liabilities, a finder is treated as bailee.
The rights of a finder of goods include the following:
- 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
a-The goods are perishable in nature.
b-His lawful charges exceed two third of the value of goods.
c- When after due search, the true owner can not be found.
d- Even if the true owner is found out, but he refuses to pay the lawful charges to the finder.
5. Mistake or Coercion (sec.72)
sec. 72 states, “A person to whom money has been paid, or anything delivered by mistake or under coercion, must repay or return it.”
Example:
A and B jointly owe Rs. 100 to C. A alone pays the amount to C, and B, not knowing this fact pays Rs. 100 again to C. C is bound to repay the amount to B.
Money paid under mistake is recoverable whether the mistake is of fact or law.
Example:
A railway company refuses to deliver up certain goods to the consignee, except upon the payment of an illegal charge for carriage. The consignee pays the sum charged in order to obtain the goods. He is entitled to recover so much of the charges as was illegally excessive. end
