[QUASI CONTRACT] December 12, 2010                                  QUASI CONTRACTS :-Contracts which are not created by t...
[QUASI CONTRACT] December 12, 20105)        Liability of the finder of goods:           The finder of goods belonging to t...
[QUASI CONTRACT] December 12, 2010                           Important MCQ’s on quasi contractQ. 1 A Quasi - contract unde...
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CPT Law Quasi Contract - Revision Sheet

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CPT Law Quasi Contract - Revision Sheet

  1. 1. [QUASI CONTRACT] December 12, 2010 QUASI CONTRACTS :-Contracts which are not created by the parties to the contract but created by the court of Law inorder to prevent undue enrichment of one at the cost of the other are called Quasi Contract.Even though these contracts may not fulfill all the essentials of a valid contract, it is consideredto be valid by the courts of law since they create such contracts.Following are the examples of Quasi contracts:-(1) Rights of a person supplying necessaries to a minor : Any person supplying necessaries to a minor has the right to receive compensation for the same from the property of the minor otherwise it would amount to undue enrichment of the minor at the cost of the supplier of necessaries. In this case, even though the minor does not have the capacity to contract the court holds the contract valid in order to safeguard the interest of the supplier of necessaries.(2) Obligation of a person receiving benefit of a non gratuitous act :- Any person who receives the benefit of a non-gratuitous act done by the other has the obligation to compensate the other for the same otherwise it would amount to undue enrichment of the person receiving such a benefit at the cost of the person giving such a benefit. For example, If a shopkeeper delivers some sweets along with the invoice for it to Mr. X which was supposed to be sold to Mr. Y and if X consumes the sweets he becomes liable to pay the price for the same. Otherwise it would amount to undue enrichment of x at the cost of Y or the shopkeeper.(3) Liability of a person to whom the goods or money is delivered by mistake :- If a person is delivered goods or money by the mistake belonging to the other, he becomes liable to compensate the other for the same, Otherwise it would amount to undue enrichment of the person to whom the goods or money is delivered by mistake at the cost of the person making such a delivery.4) Right of a person who had made any payment which was due to the paid by another, in the payment of which he is personally interested. If a person makes payment which should have been rightfully made by another and in the payment of which he is personally interested he has the right to be indemnified for the same. Otherwise it would amount to undue enrichment of the person who should have made the payment at the cost of the person making such a payment. For E.g. If a tenant pays certain water bills which should have been rightfully paid by the landlord fearing that the water supply may be cut he has the right to be indemnified for the same by the landlord otherwise it would amount undue enrichment of the landlord at the cost of the tenant.vxplain 2 score more-- post your doubts to us at vxplain@gmail.com Page 1
  2. 2. [QUASI CONTRACT] December 12, 20105) Liability of the finder of goods: The finder of goods belonging to the other is not liable to take the same into his custody. But if he takes them into his custody, he becomes liable as a bailee of those goods and is duty bound to perform the following:- (a) Take reasonable care of goods as a man of ordinary prudence would do in the case of his own goods. (b) Make reasonable effort to search for the true owner and reinstate (return) the goods to him. (c) If the goods are lost or destroyed in his custody he becomes liable to compensate the true owner for the same. He has the right to be reimbursed for all the reasonable expenses incurred by him to safeguard those goods and sell those goods if the expenses incurred exceed 2/3 of the value of those goods or if it is perishable goods. Difference Between Contract and Quasi contract Contract Quasi Contract 1. Contract results from the will of 1. Quasi contract is an obligation the parties expressed with a view resembling that created by a to create an obligation. contract 2. A contract is an agreement 2. There is no agreement at all. 3. The contract has certain essential 3. Essentials for formation of a elements. contract are absent. 4. It is a full-fledged contract and is 4. A quasi contract resembles a binding. contract .It is an implied contract, but its results resemble those created by a contract.vxplain 2 score more-- post your doubts to us at vxplain@gmail.com Page 2
  3. 3. [QUASI CONTRACT] December 12, 2010 Important MCQ’s on quasi contractQ. 1 A Quasi - contract under Indian contract Act1. Is an agreement2. Is a contract3. Has only a legal obligation4. Is not any of theseQ. 2 The basis of quasi contractual relations is the :1. Existence of a valid contract between the parties2. Prevention of unjust enrichment at the expense of others3. Existence of a voidable contract between the parties4. Provisions contained in section 10 of the Indian Contract ActQ.3 Quasi- contracts are ______ contracts.1. Void2. Valid3. Voidable4. IllegalQ.4.A person supplying ‘necessaries ‘to an incompetent person is entitled to be reimbursed fromthe 1. Incompetent person personally 2. Parents of incompetent person 3. Property of incompetent person 4. Funds with the state governmentQ.5. Match the following: 1. Section 68 a)liability of finder of goods 2. Section 69 b)Supply of necessaries to incompetent person 3. Section 70 c)Payments made by interested persons 4. Section 71 d)Compensation for non-gratuitous actsvxplain 2 score more-- post your doubts to us at vxplain@gmail.com Page 3

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