Novation of a contract is a discharge of contract Novation means the substitution of a new contract,for a contract in existence,either between the same

parties or between different parites, the consideration being the mutual discharge of the old contract. Novation thus includes two cases

Quasi contract is not a ontract;it is a transaction which is deemed,under the law, to be like a contract. There is no offer nor acceptance.The transaction is such that the laww recognizes the existnce of a liability to pay for the benefit recived, the liability not being contractual but semi-contractual.

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Section 68 to 72 of the contract at deal with certain types of transaction in which,there is no contract between the parties, but the law, by a special rule, creates rights and obligations which are similar to those created by a contract.These may be termed as quasicontracts.

OF QUASI CONTRACTS

Claim for necessaries supplied to incapable person. Reimbursement of money paid by an interested person.

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Obligation of person enjoying non-gratuitous act. Rights of finder of goods. Liability of person to whom money is paid by mistake.

Each of these quasi-contracts id discussed here under:

Under setion 68, when an incapable person or anyone whom he is ledally bound to support, is supplied by another person with nexessaries suited to his condition in life, th person who has provided such supplies is entitled to be compensated from the property of such incapable person.

Under section 69,where a person who is interested in payment of money, which another is by law bound to pay, pays the same to third person, the party making such voluntary payment is entitled in law to be reimbursed by the other. This principles is based on the fact that the party benefiting by the payments must repay the amount paid for his benefit.

According to section 70 where a person lawfully does anything for another person or delivers anything to him, not intending to do so gratuitously and the other persons enjoys the benefit thereof, the latter is bound to compensate the former in respect of the same.

i. ii.

Services rendered are non gratuitous i.e., with the intention being paid for; The act must be lawfully done, i.e., the person doing must have a lawful interest in doing it.

When a person who finds the goods belonging to another and takes them into his custody, under the law, he holds such goods as a custodian and is obliged to find the owner and return them to him. The finder cannot use them for his own purpose. If the finder incurs any expenditure in keeping the goods in their original condition and in search of the owner. If the owner wrongfully refuses to compensate, the finder can detain the goods till payment is made.

Under section 72 when a person, to whom money has been paid or some article has been delivered under a mistake, the receiver of such money or article is legally bound to return it to the person entitled to it. ILLUSTRATION A and B owe Rs. 1,000 to C, the debt being Joint obligation. A pays the full amount to C. B being unaware of the payment of full amount by A to B, pays over again Rs. 500 to C. C must repay Rs. 500 to B, because B had paid C under a mistake.

This is also kind of quasi-contract. Remember that the doctrine of quantum meruit is based on the same equitable principle on which Section 70 is based. Meaning: By the dotrine quantum meruit (payment in proportion to the amount of work done) is meant that a person who has done, at the request of another person, some work for or delivered goods to him is entitled to a reasonable payment for the same and that other person should pay him the amount merited.

When one of the parties breaks the contract the other party under the law, has the following remedies: 1) Damages for the loss sustaind 2) Specific performance, and 3) Injunction 4) Penalty for breach 5) Party rescinding entitled to compensation

Is the normal remedy in all cases of breach of contract. Whenever a breach of contract takes place the aggrieved party is entitled to claim damages for any loss suffered by him which naturally arose in the usual course of things from such breach. He can only claim damages for the direct resulting from the breach, he cannot claim damages for indirect loss which is too remotc.

Means that the party refusing to perform the contract made by him may be compelled by an order of the court to do what is promised. Specific performance is usually granted with regard to contract for sale of land or in case of goods of unique kind which are not easily available in the market.

Is an order of a court restraining a person from doing a particular act. This remedy can be availed where damages will not be adequate relief. A entered into a contract of the purchase of a motor cycle for Rs. 20,000 from B which was to be handed over to him after a weak. Before the end of that weak B entered into a contract to sell the same motor cycle to C for a price of Rs. 25,000. A came to know about this contrat.

Where a contract contains a condition that in case of the breach of the contract the part committing the breach will have to pay a definite sum of the other party by way of penalty as compensation such stipulated sum will have to paid irrespective of the fact that no damages or loss has been caused to the party who was ready and willing to perform his part of the promise.

Where a party to the contract gets a legal right to revoke or rescind the contract owing to the default or an act which is opposed to the terms of the contract, such a party is entitled to compensation for any damage which he has sustained through the non fulfilment of the contract.