India contract act quasi contract

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  • 1. Quasi Contract
  • 2. Theoretical Foundation • Quasi contract is an equitable concept arising out of the application of equity in the realm of interpersonal relations. It is also known as fictional contract.
  • 3. • CHAPTER V. “OF CERTAIN RELATIONS RESEMBLING THOSE CREATED) BY CONTRACT.” It is in the nature of hypothetical contract which is implied by the law. Obligations are imposed by the law in the situation when one person unjustly enriched himself at the cost of another. Such person requires to refund under equity.
  • 4. • Any unjust enrichment at the cost of others requires to be restituted.
  • 5. • Anson (P. 617) Circumstances must occur under any system of law in which it becomes necessary to hold a person to be accountable to another, without any agreement on the part of the former to be so accountable, on the ground that otherwise he could be retaining money or some other benefit which has come into his hands to which the law regards the other person as better entitled or on the ground that without such accountability the other would unjustly suffer loss.
  • 6. • Distinctive marks of quasi contracts are – (i)Such a right is always a right to money mostly a liquidated sum though may not always be so. (ii) It does not arise out of contract between parties, but is imposed by law. (iii) Right against the specified person.
  • 7. INSTANCES OF QUASI CONTRACT (1) Supply of Necessity – Sec. 68 (2) Payment by an interested person – Sec 69 Condition precedence for Sec 69 – (a) The plaintiff is not under legal compulsion to pay but he has only interest in the payment. (b) The defendant is lawfully bound to make payment. (c) Plaintiff must have made the payment.
  • 8. INSTANCES OF QUASI CONTRACT (3) Liability to pay for non gratuitous act – Sec 70 Illustrations (a) & (b). (4) Finder of Goods – Sec 71 A finder of the goods therefore becomes a bailee in in case of need. He is therefore responsible for the restoration of the property to the owner. A finder of the goods has a better title than everyone except the true owner of the goods. (5) Mistake or coercion – Sec. 72.