Quasi contracts


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  • The case of NASH v INMAN (1908) 2 KB 1 March 5 1908 http://www.hinduonnet.com/businessline/2000/06/26/stories/212601ak.htm
  • Duties of Finder of Goods: He must try to find out “the real owner” of the goods and must not appropriate the property to his own use ( Section 403 IPC ) He must take as much care of the goods as much a man of ordinary prudence would take of his own goods of same bulk, quality and value. (Sec 151 ) Rights of finder of Goods: He is entitled to the possession of the goods till the true owner is found. ( Case : Hollins vs FowlerS) He is entitled to retain this good until he receives the lawful charges or compensation for retaining the goods and for care and preservation thereof. However, he cant sue for such compensation unless a specified reward has been advertised by the owner. He can sell the goods if: The commodity is perishable the owner cannot be found owner refuses to pay the lawful charges Lawful charges amount to 2/3rd of the value of commodity found
  • Quasi contracts

    1. 1. BUSINESS LEGISLATION Quasi ContractsPresented By:Aadil Mehraj-100129Idrees Hafeez-100130Hasnain Baber-100131
    2. 2. Quasi contracts• Quasi means ‘almost’ or ‘apparently but not really’ or ‘as if it were’• Obligation between parties is not contractual but one which is treated as contractual by law• Courts create quasi contracts to protect the unjust enrichment of the parties in dispute over payment of goods or services
    3. 3. Difference between contract and quasi contract Quasi ContraCt ContraCt• Results from the will of • Is an obligation the parties expressed resembling that created with a view to create an by a contract obligation• Is an agreement • There is no agreement at all• Has certain essential • Essentials for formation elements of a contract are absent• Is a full fledged contract • Resembles a contract. and is binding not a full fledged contract. is an implied contract
    4. 4. Types of Quasi contracts:1. Supply of necessities (Sec.68)2. Payment by an interested person (Sec.69)3. Obligation to pay for non gratuitous act (Sec.70)4. Responsibility of finder of goods (Sec.71)5. Mistake or Coercion (Sec.72)
    5. 5. Section 68“Claim for supply of necessaries to person incapable of contracting”Necessaries: Things suited to the conditions of incompetent parties Includes articles required to maintain a particular person in the state and degree in the life in which he is Articles without which an individual cannot reasonable existIllustration  A supplies B, lunatic with necessaries suitable to his condition of life. is entitled to be reimbursed from B’s property  A minor studying at Cambridge was supplied with clothing, including eleven waist-wats. He already had sufficient clothing with him. It was held that the waist-wats were not necessary articles and so he was not liable to pay for them.
    6. 6. Section 69 “Reimbursement of money paid, in which he is interested”Essentials: There must be a person who is bound to make a payment by law. The person paying must himself not be bound to pay. When he is jointly liable to pay, payment by him would not give him the right to recover under this section There must be another person interested, not bound by law, in such payment being made and interest should exist at the time of payment. The payment must be made bonafide for the protection of one’s own Illustration interestA and B have been fined jointly Rs500 for selling adulterated ghee. A alone pays theamount of fine in good faith, A cannot later claim contribution from B under Section 69.Notice that although B was bound by law to pay and A has paid B’s share in good faith,yet A cannot recover as he himself was bound to make the payment, being jointly liablewith B and was not simply interested in making the payment.
    7. 7. Section 70 “Obligation of a person enjoying benefits of non-gratuitous act” • Person lawfully does anything for another person • Delivers anything to him non-gratuitously • Latter is bound to make compensation or restore the thing so done or delivered • The thing must be done lawfully • The person for whom the act is done must enjoy the benefit of it. Illustration A, a tradesman, leaves goods at B’s house by mistake. B treats the goods his own. He is bound to pay for them A saves B’s property from fire. A is not entitled to compensation from B, if the circumstances show that he intended to act gratuitously.
    8. 8. Section 71: “ responsibility of finder of goods”His rights: • Entitled to retain the goods until he receives the lawful charges or compensation for retaining the goods and taking care of them. •However, he cannot sue for such compensation unless a specified reward has been advertised by the owner. • Entitled to possess the goods until the true owner is found •Can sell the goods when:  Commodity is perishable  Owner cannot be found  Owner refuses to pay compensation  Compensation amounts to 2/3rd of the value of the commodity
    9. 9. His liabilities: • Responsible to take care of the goods as if they were his own • Must with reasonable diligence trace the true owner
    10. 10. Section 72:“Liabilities of a person to whom money is paid or thingdelivered by mistake or under coercion” A person to whom money has been paid, or anything delivered by mistake or under coercion, must repay or return it.Illustration: •A and B jointly owe Rs.100 to C. A alone pays the amount. B not knowing it also pays to C. C is bound to repay the amount to B. •A railway co. refuses to deliver certain goods to the consignee, except upon the payment of illegal charge for carriage. The consignee pays the sum charged in order to obtain the goods. He is entitled to receive the excessive amount as paid by him.
    11. 11. THANK YOU