1. NegotiorumGestio is a type of spontaneous agency or interference by a person, called a negotiorum gestor,
in the affairs of another, in his absence. The gestor is only entitled to reimbursement for expenses and not to
remuneration. The underlying principle being that negotiorum gestio is intended as an act of generosity and
friendship and not to allow the gestor to profit from his agency.
-(Latin for "management of business") is a form of spontaneous voluntary agency in which an intervenor or
intermeddler, the gestor, acts on behalf and for the benefit of a principal (dominus negotii), but without the
latter's prior consent. The gestor is only entitled to reimbursement for expenses and not to remuneration, the
underlying principle being that negotiorum gestio is intended as an act of generosity and friendship and not to
allow the gestor to profit from his intermeddling. This form of intervention is classified as a quasi-contract and
found in civil-law jurisdictions and in mixed systems (e.g. Scots, South African, and Philippine laws).
- voluntary management of theproperty or aFairs of another withoutthe knowledge or consent of thelatter.
For example, while you are traveling abroad, a typhoon hits your home town and the roofing of your house is in
danger. To avoid the catastrophic situation, your neighbour does something urgently necessary. You are the
'principal' and your neighbour here is the 'gestor', the act of which saved your house is the negotiorum gestio.
ExampleAtravelledtoGermanywithoutleavinganyonetolook after his house in Makati.During his absence,
aFrebrokeoutnearA’shouse.BsavedA’shousefrom the Fre but incurred expenses in the
process.AhasanobligationtoreimburseBforthelatter’sexpenses based on negotiorum gestio, even if he didnot
give his consent to B’s act of saving his house.
INDEBITI SOLUTIO, civil law. The payment to one of what is not due to him. If the payment was made by mistake, thecivil
ians recovered it back by an action called condictio indebiti; with us, such money may be recovered by an action of
assumpsit.
-Lat In the civil and Scotch law. A payment of what Is not due. When made through ignorance or by mistake,
the amount paid might be recovered back by an action termed “conditio indebiti.” (Dig. 12, 6.) Bell.
-The case where one had paid a debt, or done an act or remitted a claim because he thought that he was
bound in law to do so, when he was not. In such cases of mistake there is an implied obligation (quasi ex
contractu) to pay back the money, etc.; Poll.
-Solutio indebiti refers to the juridical relation which arises whenever a person unduly delivers a thing
through mistake to another who has no right to demand it.
-If something is received when there is no right to demand it, and it was unduly delivered through mistake,
the obligation to return it arises. (Art. 2154, CC)
What are the requisites solutio indebiti?
1. There must be a paymentor delivery made byone persontoanother;
2. The personwhomade the paymentor deliverywasunder noobligation todoso;
3. The paymentordeliverywasmade byreason of a mistake.
Examplesof solutioindebiti
1. Erroneouspaymentof interestnotdue
2. Erroneouspaymentof rental notcalledforin view of the expirationof the leasecontract
3. Taxeserroneouslygiven.
QUASI CONTRACT
Generally a contract comes into existence as a result of offer made by one party and its acceptance
by the other party, with free will of both the parties. However under certain conditions even though no
will is expressed by both the parties for creating contractual relations, the law creates and enforces
2. legal rights and obligations. Such contracts are known as Quasi Contracts. The principle behind
Quasi Contracts is that a person shall not be allowed to enrich himself at the expense of another.
Section 68 to 72 of the Contract Act deals with 5 different kinds of Quasi Contracts explained below:
1. Supply of Necessaries to Incapable Person (Section 68):
If a person incapable of entering into a contract, or anyone whom he is legally bound to support, is
supplied by another person with necessaries, suited to his condition in life, the person who has
furnished such supplies is entitled to be reimbursed from the property of such incapable person.
Example: A supplies B, a lunatic, with necessaries suitable to his condition in life. A is entitled to be
reimbursed from B’s property.
2. Payment by Interested Person (Section 69):
A person, who is interested in payment of money, which another is bound by law to pay, and who
therefore, pays it, is entitled to be reimbursed by the other.
Example: A holds land in Bengal on a lease. B is the owner of the land. The land revenue payable by
B to the government is in arrears and therefore the government advertised the land for sale to recover
the dues. To prevent the sale of land A pays the arrears of land revenue. In this case B is bound to
reimburse the amount to A.
3. Payment for Non-gratuitous act (Section 70):
Where a person lawfully does anything for another person or delivers anything to him not intending to
do so gratuitously and such other person enjoys the benefit thereof, the later is bound to make
compensation to the former in respect of, or, to restore the thing so done or delivered.
Example: A, a tradesman, leaves his good at B’s house by mistake. B treats the goods as his own
and uses them. B is bound to pay for the goods.
4. Liability of Finder of Goods (Section 71):
A person who finds the goods belonging to another, and takes them into his custody is subject to
same responsibility as a bailee. He must take reasonable care of the goods and keep them in sound
condition and try to find out its true owner.
5. Payment of Delivery by Mistake or under Coercion(Section 72):
A person to whom money has been paid or anything delivered by mistake or under coercion must
repay or return it.
Example: A and B jointly owe Rs.5,000 to C. A alone pays this amount to C. B not knowing this again
pays Rs.5,000 to C. In this case C is bound to repay Rs.5,000 to B as this amount is paid to him by
mistake.
The law of obligations is one branch of private law under the civil law legal system and so-called "mixed" legal
systems. It is the body of rules that organizes and regulates the rights and duties arising between individuals. The
specific rights and duties are referred to as obligations, and this area of law deals with their creation, effects, and
extinction. An obligation is a legal bond (vinculum iuris) by which one or more parties (obligants) are bound to act or
refrain from acting. An obligation thus imposes on the obligor a duty to perform, and simultaneously creates a
corresponding right to demand performance by the obligee to whom performance is to be tendered. Obligations may
be civil, which are enforceable by action in a court of law, or natural, which imply moral duties but are unenforceable
unless the obligor consents.
