Quasi-Contracts

Introduction

Quasi-contracts are based on the idea of no man

must grow rich out of another persons costs

These are based on the equitable principle that a a person shall not be allowed to enrich himself at the expense of another

Meaning

Although there is no contract or agreement

between the parties, they are put in the same

position as if there were a contract between

them

Meaning

Certain obligations are imposed by law

These obligations are similar to those which

are created by contract

Kinds of Quasi Contracts

1.

Necessaries supplied to Person incapable of

Contracting

According to Sec. 68, if a person is supplied by another person with necessaries, for him (or any one whom he is bound to support) he is liable to pay to the supplier out of

his property

Kinds of Quasi Contracts

2.

Payment by an Interested Person

According to Sec. 69, a person who is interested

in the payment of money in which another is

bound by law to pay and who therefore pays it, is entitled to be reimbursed by the other

Kinds of Quasi Contracts

Essentials of Section 69

The payments made should be bonafide for the

protection of ones interest

The payment should not be a voluntary one The payment should be such that the other party was bound by law to pay

Kinds of Quasi Contracts

3.

Liability for Non-gratuitous Act

According to Sec. 70, if a person lawfully does anything for another person or delivers anything to him (non-gratuitous) and other person enjoys the benefits, he is bound to make compensation

to the person or restore the things

Kinds of Quasi Contracts

Essentials of section 70

The thing must have been done lawfully It must have been done by person not intending to act gratuitously

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

Kinds of Quasi Contracts

4.

Responsibility of Finder of lost goods

According to Sec. 71, a person who finds goods belonging to another an takes them into his custody, he is bound to take as much care of the goods as his own goods of same bulk quality and

value

Kinds of Quasi Contracts

It is also the duty of the finder of lost goods to trace the true owner

Till the true owner is found out, the property in the goods will vest in the finder and he can retain it as his own against the whole world, except the

true owner

Kinds of Quasi Contracts

The finder can sell the goods in the following conditions, where the,

thing found is in danger of perishing or losing the greater part of its

value

owner cannot, with reasonable diligence, be found out

owner is found out, but refuses to pay lawful charges of the finder
Lawful charges of the finder, in respect of the thing found, amount to two-third of the value of the thing found

Kinds of Quasi Contracts

5.

Action for money paid, or thing delivered, by mistake or under coercion

According to Sec. 72, a person to whom money has been paid or anything delivered by mistake or under coercion, must repay or return it

Kinds of Quasi Contracts

6.

Quantum Meruit
One person has rendered service to another in
circumstances which indicate an understanding

between them that it is to be paid for although no

particular remuneration has been fixed

Kinds of Quasi Contracts

The object of allowing a claim on quantum

meruit is to recompensate the party or person

for value of work which he has done

Kinds of Quasi Contracts

The claim for quantum meruit arises in the

following cases

When an agreement is discovered to be void

When something is done without any intention to

do so gratuitously

Kinds of Quasi Contracts

The claim for quantum meruit arises in the

following cases

When there is an express or implied contract to render

services but there is no agreement as to remuneration

When one party abandons or prevents or even refuses to perform the contract

Kinds of Quasi Contracts

The claim for quantum meruit arises in the

following cases

When a contract is divisible and the party not in default

has enjoyed the benefits of the part performance

When and indivisible contract for a lump sum is completely performed

Quasi and General Contracts

Outcome of the quasi-contract resembles the

general contract

The difference between the quasi contract and

general contract is the obligations under quasi

contract are imposed by law

Effects of Quasi Contract

According to section 73, when an obligation created

by quasi contract has not been discharged, the injured party is entitled to receive the same compensation from the party in default, as if the sued person had contracted to discharge it and had broken his contract