Quasi Contract


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Lectures by Dr. Tabrez Ahmad

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Quasi Contract

  1. 1. Quasi Contract By Dr. Tabrez Ahmad, Professor of LawSec 68 to 72 of the Indian ContractAct 1872 Dr. Tabrez Ahmad, 1 http://corpolexindia.blogspot.com
  2. 2. CERTAIN RELATIONSRESEMBLING THOSECREATED BY CONTRACTOr Constructive contracts or Contracts implied by law or Restitution or Quasi Contracts.Any civilised system of law is bound to provide remedies for cases of what has been called unjust enrichment or unjust benefit, i.e, to prevent a man from retaining money of, or some benefit derived from, another which it is against conscience that he should keep. Dr. Tabrez Ahmad, 2 http://corpolexindia.blogspot.com
  3. 3. The necessitySome cases do not fall within the scope of either contract or tort, as jurisprudentially understood in particular, or under any recognised legal concept, in general. Denying a remedy on that ground in such cases, would result in an ‘unjust benefit’ to one and an ‘unjust loss’ to another. Therefore, every legal system invents remedial measures to deal with unjust enrichment. Dr. Tabrez Ahmad, 3 http://corpolexindia.blogspot.com
  4. 4. In Indian law, unjust enrichment is remedied by imposing an obligation on the person who has unjustly benefited, to return the same to the person who suffered the ensuing unjust loss. This is effected by presuming the relation between the person who has unjustly benefited and the one who has unjustly suffered loss, as one resembling that created by contract. Even though, actually, there is no contract between them in the parlance of law, the relation between them is treated as if one created by a contract by implication. Dr. Tabrez Ahmad, 4 http://corpolexindia.blogspot.com
  5. 5. Sec. 68 of the IndianContract Act 1872 Claim for necessaries supplied to person incapable of contracting, or on his account.If a person, incapable of entering into a contract, or any one 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.Illustrations a) A supplies B, a lunatic, with necessaries suitable to his condition in life. A is entitled to be reimbursed from Bs property. b) A supplies the wife and children of B, a lunatic, with necessaries suitable to their condition in life. A is entitled to be reimbursed from Bs property. Dr. Tabrez Ahmad, 5 http://corpolexindia.blogspot.com
  6. 6. Sec. 69 of the IndianContract Act 1872Reimbursement of person paying money due by another, in payment of which he is interested - A person who is interested in the payment of money which another is bound by law to pay, and who therefore pays it, is entitled to be reimbursed by the other. Dr. Tabrez Ahmad, 6 http://corpolexindia.blogspot.com
  7. 7. Illustration B holds land in Bengal, on a lease granted by A, the zamindar. The revenue payable by A to the Government being in arrear, his land is advertised for sale by the Government. Under the revenue law, the consequence of such sale will be the annulment of Bs lease. B, to prevent the sale and the consequent annulment of his own lease, pays to the Government the sum due from A. A is bound to make good to B the amount so paid. Dr. Tabrez Ahmad, 7 http://corpolexindia.blogspot.com
  8. 8. Sec. 70 of the IndianContract Act 1872Obligation of person enjoying benefit of non-gratuitous act 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 latter is bound to make compensation to the former in respect of, or to restore, the thing so done or delivered. Dr. Tabrez Ahmad, 8 http://corpolexindia.blogspot.com
  9. 9. Illustrations a) A, a tradesman, leaves goods at Bs house by mistake. B treats the goods as his own. He is bound to pay A for them. b) A saves Bs property from fire. A is not entitled to compensation from B, if the circumstances show that he intended to act gratuitously. Dr. Tabrez Ahmad, 9 http://corpolexindia.blogspot.com
  10. 10. Sec of 71 of the IndianContract Act 1872,Responsibility of finder of goods – A person who finds goods belonging to another, and takes them into his custody, is subject to the same responsibility as a bailee. Dr. Tabrez Ahmad, 10 http://corpolexindia.blogspot.com
  11. 11. Sec of 72 of the IndianContract Act 1872Liability of person to whom money is paid or thing delivered 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. Dr. Tabrez Ahmad, 11 http://corpolexindia.blogspot.com
  12. 12. Illustrations a) A and B jointly owe 100 rupees to C. A alone pays the amount to C, and B, not knowing this fact, pays 100 rupees over again to C. C is bound to repay the amount to B. b) A railway company refuses to deliver up certain goods to the consignee, except upon the payment of an illegal charge for carriage. The consignee pays the sum charged in order to obtain the goods. He is entitled to recover so much of the charge as was illegally excessive. Dr. Tabrez Ahmad, 12 http://corpolexindia.blogspot.com
  13. 13. Thanks, we will continue… Dr. Tabrez Ahmad, 13http://corpolexindia.blogspot.com