Quasi Contracts: Introduction: 1) The term “Quasi” means similarity or “bears resemblance to”. 2) Quasi Contract is sim…
Quasi Contracts:
Introduction:
1) The term
“Quasi” means similarity or “bears resemblance to”.
“Quasi” means similarity or “bears resemblance to”.
2) Quasi
Contract is similar to contracts, in respect of the contractual obligation.
However, it is different from a contract, in respect that there is no formal
agreement entered into by the parties.
Contract is similar to contracts, in respect of the contractual obligation.
However, it is different from a contract, in respect that there is no formal
agreement entered into by the parties.
Contract = Agreement + Legal Obligation Quasi Contract = Legal Obligation
3) In case of
quasi contracts, there is no offer, no acceptance, no consensus-ad-idem and
absolutely no intention on the part of the parties to strike a contract. Still,
the law, from the conduct and relationship of the parties, imposes an
obligation on one party and confers rights on the other party. This obligation
is called quasi contractual obligation.
quasi contracts, there is no offer, no acceptance, no consensus-ad-idem and
absolutely no intention on the part of the parties to strike a contract. Still,
the law, from the conduct and relationship of the parties, imposes an
obligation on one party and confers rights on the other party. This obligation
is called quasi contractual obligation.
4) Thus,
quasi contract is based on the doctrine of unjust enrichment, which
declares that a person should not be allowed to enrich himself unjustly at the
expense of another.
quasi contract is based on the doctrine of unjust enrichment, which
declares that a person should not be allowed to enrich himself unjustly at the
expense of another.
Quasi-Contractual Obligations:
1) Claim for necessaries supplied to a person
incapable of contracting or on his account.
incapable of contracting or on his account.
Example:
Anand supplies necessities
to Yamini, a mentally
unsound person, which are suitable to her condition. Anand is entitled to be reimbursed from Yamini’s property.
to Yamini, a mentally
unsound person, which are suitable to her condition. Anand is entitled to be reimbursed from Yamini’s property.
Conditions, which need to be satisfied:
a) The minor
or the person incapable of contracting is not personally liable.
or the person incapable of contracting is not personally liable.
b) Only
property is liable.
property is liable.
c) The goods
supplied or services rendered must qualify as necessaries.
supplied or services rendered must qualify as necessaries.
d) Only
reasonable amount can be claimed for the supply of necessaries.
reasonable amount can be claimed for the supply of necessaries.
e) Such
necessaries should be supplied only to person incapable of contracting or his
dependents.
necessaries should be supplied only to person incapable of contracting or his
dependents.
2) Reimbursement of persons paying money due by
another, in payment of which he is interested:-
another, in payment of which he is interested:-
The Contract Act lays down that if one person who is
interested in the payment of money which another is bound to pay by law, and
the former pays it, he is entitled to be reimbursed by the latter.
interested in the payment of money which another is bound to pay by law, and
the former pays it, he is entitled to be reimbursed by the latter.
Example: A sub-tenant pays the arrears of rent due by the
tenant to the landlord, in order to save the tenancy from forfeiture.
tenant to the landlord, in order to save the tenancy from forfeiture.
3) Obligation
of Person Enjoying Benefit of Non-Gratuitous Act:-
of Person Enjoying Benefit of Non-Gratuitous Act:-
When a person does something lawfully to another, or
delivers something to him, not intending to do so gratuitously, the other
person enjoys the benefits there of, he is bound to compensate the latter for
the thing done or delivered.
delivers something to him, not intending to do so gratuitously, the other
person enjoys the benefits there of, he is bound to compensate the latter for
the thing done or delivered.
Example: SM & Sons delivers a basket containing any fruits
to Mr. Kishore, by mistake. Mr. Kishore and his family consume it, despite
knowing that the goods are not intended for them. Now, the family must
compensate SM & sons.
to Mr. Kishore, by mistake. Mr. Kishore and his family consume it, despite
knowing that the goods are not intended for them. Now, the family must
compensate SM & sons.
4) Responsibility
of Finder of Lost Goods:-
of Finder of Lost Goods:-
When a person comes across things belonging to another
and takes them into his custody, he must restore it to the true owner.
and takes them into his custody, he must restore it to the true owner.
Example: A finds a purse left behind by a passenger in a bus.
If he takes custody of it, he is under an obligation to restore it to its
owner.
If he takes custody of it, he is under an obligation to restore it to its
owner.
5) Liability
of Person to Whom Money is Paid or thing Delivered by Mistake / under coercion
of Person to Whom Money is Paid or thing Delivered by Mistake / under coercion
Example: A and B jointly owe Rs 5000/- to C, A alone pays the
amount to C, and B, not knowing this fact, pays Rs 5000/- over again to C. C is
bound to repay the amount to B.
amount to C, and B, not knowing this fact, pays Rs 5000/- over again to C. C is
bound to repay the amount to B.
PRACTICE
EXERCISE:
EXERCISE:
1. The basis of quasi contracts is
A.
Existence of voidable contracts between the parties
Existence of voidable contracts between the parties
B. Existence of valid contracts between the
parties
parties
C.
Consent
Consent
D.
Prevent unjust enrichment at the expense of others
Prevent unjust enrichment at the expense of others
Ans: D
2. A
person enjoying the lawful non- gratuitous acts of another
person enjoying the lawful non- gratuitous acts of another
A. Liable
to compensate
to compensate
B. Has to
perform the same act to the other
perform the same act to the other
C. Has no liability
D. None
of the above
of the above
Ans: A
3. Anand supplies necessities to Yamini, a
mentally unsound person, which are suitable to her condition. Anand is
mentally unsound person, which are suitable to her condition. Anand is
A.
Entitled to be reimbursed from Yamini’s property
Entitled to be reimbursed from Yamini’s property
B. Not
entitled to anything
entitled to anything
C. Yamini
has to perform the same act for Anand
has to perform the same act for Anand
D. None
of the above
of the above
Ans: A
4. If A
agrees to pay rent for B for the month of June. Is be liable to compensate A
agrees to pay rent for B for the month of June. Is be liable to compensate A
A. Yes
B. No
C. Maybe
D. None of
the above
the above
Ans: A
5. A delivery from Amazon has been wrongly sent
to Raju. Raju in spite of knowing that he is not the true owner of the goods
uses them. Is Raju liable to compensate?
to Raju. Raju in spite of knowing that he is not the true owner of the goods
uses them. Is Raju liable to compensate?
A. Yes
B. No
C. Maybe
D. None
of the above
of the above
Ans: A
6. Maya
finds a bag on the seat next to her. She takes the bag with her. She
finds a bag on the seat next to her. She takes the bag with her. She
A. Is
under a liability to return the bag to the owner
under a liability to return the bag to the owner
B. Is
under no liability
under no liability
C. Likes
the bag so she can keep it
the bag so she can keep it
D. None
of the above
of the above
Ans: A
7. If Ted finds a yellow umbrella at a club and
decides to take it. He
decides to take it. He
A. has
must restore it to the true owner
must restore it to the true owner
B. finders,
keepers
keepers
C. Both
(a) and (b)
(a) and (b)
D. None
of the above
of the above
Ans: A
8. Supply of necessities has been dealt with
under which Sec. of The Indian Contract Act?
under which Sec. of The Indian Contract Act?
A. 13
B. 63
C. 68
D. 16
Ans: C
9.
Reimbursement of payment of money due by another has been dealt with in
Reimbursement of payment of money due by another has been dealt with in
A. Sec.68
B. Sec.
69
69
C. Sec.
70
70
D. None
of the above
of the above
Ans: B
10.
Obligation of person enjoying non gratuitous act has been dealt with in
Obligation of person enjoying non gratuitous act has been dealt with in
A. Sec.
69
69
B. Sec.
70
70
C. Sec.
71
71
D. None of
the above
the above
Ans: B
11.
Responsibility of finder of goods falls under which Sec of The Indian Contract
Act?
Responsibility of finder of goods falls under which Sec of The Indian Contract
Act?
A. 68
B. 70
C. 71
D. 73
Ans: C
12.
Liability of person to whom money is paid or goods are delivered by mistake
falls under which Sec. of The Indian Contract Act
Liability of person to whom money is paid or goods are delivered by mistake
falls under which Sec. of The Indian Contract Act
A. 73
B. 74
C. 72
D. 76
Ans: C
13. A
mistook B to be C and paid his debt of Rs. 5000 to him. C is liable to either
repay or return the money
mistook B to be C and paid his debt of Rs. 5000 to him. C is liable to either
repay or return the money
A. Yes
B. No
C. Maybe
D. None
of the above
of the above
Ans: A
14. A and
B jointly owe Rs 5000/- to C, A alone pays the amount to C, and B, not knowing
this fact, pays Rs 5000/- over again to C. C is
B jointly owe Rs 5000/- to C, A alone pays the amount to C, and B, not knowing
this fact, pays Rs 5000/- over again to C. C is
A. Not
liable
liable
B. Bound
to repay the money to B
to repay the money to B
C. Rich
D. None
of the above
of the above
Ans: B
15. A
leaves goods at B’s house by mistake. B starts using them as his own. Is B bound
to pay A for them?
leaves goods at B’s house by mistake. B starts using them as his own. Is B bound
to pay A for them?
A. Yes
B. No
C. Maybe
D. None
of the above
of the above
Ans: A
