Quasi Contracts
Sections 68 to 72 deals with----
"Certain relations resembling those created by contract" under Indian contract act, 1872.
It incorporated those obligations which are known as "quasi contracts" under English
law. It covers cases where the obligation to pay arises neither on the basis of a contract
nor a tort, but a person has obtained an unjust benefit at the cost of another.
The quasi-contractual obligations are based on the principle that law as well as justice
should try to prevent unjust enrichment means enrichment of one person at the cost of
another or to prevent a man from retaining the money of, or some benefits derived from
another which it is against conscience that he should keep.
Thus the principle of unjust enrichment requires:
1st that the defendant has been 'enriched' by the receipt of a benefit :
2nd that this enrichment is at the expense of the plaintiff: and
3rd that the retention of unjust of the enrichment is unjust [mahabir kishore vs. state
of M.P.,AIR.(1990)S.C.313]
Strictly speaking, a quasi-contract is not a contract at all. A contract is intentionally
entered into. A quasi -contract ,on the other hand , is created by law. In an American
case MILLER VS. SCHLOSS, 918N.Y.400, N.E.337, it was observed: "In truth it is not
a contract at all. It is an obligation which the law creates in the absence of any
agreement, when the acts of the parties or others have placed in the possession of one
person, money or its equivalent, under such circumstances that in equity and good
conscience he ought not retain it, and which ex aequo et bono (in justice and fairness)
belongs to another".
Kinds of Quasi Contract:
(1) SUPPLY OF NECESSITIES (Sec.68)
If a person, incapable of entering into a contract, or anyone whom he is legally bound to
support, is supplied by another 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.
Ex. A supplies a lunatic to B, with necessaries suitable to his condition in life. A is
entitled to be reimbursed from B's property.
(2) PAYMENT BY AN INTERSTED PERSON (sec. 69)
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.
Ex. B holds land in Bengal, on a lease granted by A, the Zamindar. The revenue
payable by A to the govt. being in the arrears, his land is advertised for sale by the govt.
under the revenue law the consequences of such sale will be annulment of B's lease. B
