Model Answer
0 min readIntroduction
Quasi-contracts, also known as implied contracts, are not true contracts as they lack all the essential elements of a valid contract – offer, acceptance, and intention to create legal relations. However, the law recognizes them to prevent unjust enrichment of one party at the expense of another. The concept stems from the principles of equity, justice, and good conscience. Section 10 of the Indian Contract Act, 1872, deals with what constitutes a valid contract, and the absence of these elements in certain situations leads to the application of quasi-contractual obligations as outlined in Sections 68-72 of the same Act. These provisions ensure fairness in transactions even when a formal agreement is missing.
Understanding Quasi-Contracts
Quasi-contracts arise when a relationship exists between parties that resembles a contractual one, even without a formal agreement. The core principle is to prevent a party from unfairly benefiting at the expense of another. The Indian Contract Act, 1872, specifically addresses these situations under Sections 68 to 72.
Classification of Quasi-Contracts under the Indian Contract Act, 1872
1. Supply of Necessaries to a Person Incapable of Contracting (Section 68)
This section deals with situations where necessaries (goods and services essential for sustenance) are supplied to a person who is legally incapable of entering into a contract – minors, lunatics, or persons of unsound mind. The supplier is entitled to reimbursement from the person’s property.
- Example: Supplying food and clothing to a minor who is not able to pay.
2. Payment by a Person by Mistake or Coercion (Section 69)
Section 69 covers instances where a person makes a payment to another, not intending to do so, or under coercion. The recipient is obligated to repay the amount.
- Example: A bank mistakenly credits an account with an extra amount; the account holder is bound to return it.
3. Obligation of a Person Enjoying Benefit of Non-Gratuitous Service (Section 70)
This section applies when a person knowingly receives a benefit (service) from another without requesting it, and the service was not rendered gratuitously (free of charge). The recipient is liable to pay a reasonable amount for the service.
- Example: A person finds another’s goods mistakenly delivered to them and uses them; they must pay for the use of those goods.
4. Responsibility of Finder of Lost Goods (Section 71)
Section 71 outlines the duties of a person who finds goods belonging to another. The finder must take reasonable care of the goods and either deliver them to the owner or notify them. If the owner is unknown, the finder must give notice and take reasonable care until the owner is found.
- Example: Finding a lost wallet and attempting to locate the owner.
5. Liability of Person Causing Wrongful Gain (Section 72)
This section deals with situations where a person wrongfully gains possession of another’s property. The person is obligated to restore the property or compensate for any loss caused.
- Example: A person receives money that was paid to another by mistake and refuses to return it.
| Section | Description | Example |
|---|---|---|
| 68 | Necessaries to Incapable | Food to a minor |
| 69 | Payment by Mistake | Bank credit error |
| 70 | Benefit of Non-Gratuitous Service | Using mistakenly delivered goods |
| 71 | Finder of Lost Goods | Finding a lost wallet |
| 72 | Wrongful Gain | Retaining mistakenly received money |
Conclusion
In conclusion, quasi-contracts are a vital component of contract law, ensuring fairness and preventing unjust enrichment even in the absence of a formal agreement. Sections 68-72 of the Indian Contract Act, 1872, provide a framework for addressing these situations, classifying them based on the specific circumstances. Understanding these provisions is crucial for maintaining equitable commercial transactions and protecting the rights of all parties involved. The principles underlying quasi-contracts continue to be relevant in modern commercial dealings, particularly in areas like digital transactions and unforeseen circumstances.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.