Q. Define quasi contract and explain the obligations under quasi contracts.
Definition of Quasi Contract (Easy for Exams)
Under the Indian Contract Act, 1872, a quasi contract is not a real contract but is treated as a contract by law to prevent injustice.
In simple words,
When there is no agreement between parties, but the law imposes a duty on one person to compensate another, it is called a quasi contract.
It is based on the principle:
No one should be allowed to unjustly enrich himself at the expense of another.
So, quasi contract creates legal obligation without agreement.
Meaning and Nature of Quasi Contract
A quasi contract:
Does not arise from agreement.
Is imposed by law.
Prevents unjust enrichment.
Creates obligation similar to a contract.
Though there is no offer and acceptance, the law treats the situation as if a contract exists for fairness.
Obligations under Quasi Contracts
The Indian Contract Act provides certain situations where quasi-contractual obligations arise. These are mainly covered under Sections 68 to 72.
1) Supply of Necessaries (Section 68)
If a person supplies necessaries to someone who is incapable of contracting, the supplier is entitled to be reimbursed from the property of that person.
Necessaries include food, clothing, shelter, education, and medical aid.
Example:
Ravi supplies food and medicine to a minor.
The minor is not personally liable, but Ravi can recover the amount from the minor’s property.
Thus, the supplier gets compensation under quasi contract.
2) Payment by an Interested Person (Section 69)
If a person who is interested in the payment of money pays it on behalf of another, he is entitled to be reimbursed.
The payment must be legal and necessary.
Example:
Suresh pays Ravi’s house tax to save the property from being auctioned.
Suresh can recover the amount from Ravi.
So, the person who paid gets a legal right of recovery.
3) Obligation of a Person Enjoying Benefit of Non-Gratuitous Act (Section 70)
If a person lawfully does something for another, not intending it to be free, and the other person enjoys the benefit, then the beneficiary must compensate.
Three conditions must be satisfied:
The act must be lawful.
It must not be gratuitous.
The other person must enjoy the benefit.
Example:
Ravi repairs Suresh’s house believing he will be paid.
Suresh uses the repaired house.
Suresh must compensate Ravi.
Thus, enjoying benefit creates obligation.
4) Responsibility of Finder of Goods (Section 71)
A person who finds goods belonging to another has the responsibility of a bailee.
The finder must take reasonable care and return the goods.
Rights of finder:
Right to reward (if promised).
Right to sue for reward.
Right to lien for reward.
Duties of finder:
Take reasonable care.
Not misuse goods.
Find the true owner.
Example:
Ravi finds Suresh’s wallet on the road.
Ravi must keep it safe and return it.
Suresh must compensate reasonable expenses.
Thus, finder has quasi-contractual rights and duties.
5) Money Paid or Goods Delivered by Mistake or Coercion (Section 72)
If money is paid or goods delivered by mistake or under coercion, it must be returned.
Mistake may be of fact or law.
Example:
Ravi pays ₹5,000 to Suresh by mistake.
Suresh must return the money.
Or, if money is taken by threat, it must be repaid.
So, unjust benefit cannot be retained.
Difference Between Contract and Quasi Contract
Contract:
Created by agreement.
Has offer and acceptance.
Based on consent.
Quasi Contract:
Created by law.
No agreement.
Based on equity and justice.
Conclusion (For Scoring)
To conclude, a quasi contract is not a real contract but an obligation imposed by law to prevent unjust enrichment. It arises without agreement and is based on fairness. The Indian Contract Act recognizes obligations relating to supply of necessaries, payment by interested persons, non-gratuitous acts, finder of goods, and money paid by mistake or coercion. These ensure justice and equity in transactions where no formal contract exists.
One-Line Exam Memory Tip
A quasi contract is a legal obligation imposed by law without agreement to prevent unjust enrichment and ensure fairness between parties.