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WHAT IS MEANT BY QUASI CONTRACT ?

  

QUASI CONTRACT:

Quasi contracts are the contracts that do not fulfill all the essentials of a valid contract, still they are enforceable by law and are called Quasi Contract or Constructive Contract.

It arises under special circumstances. The law requires that a person must perform some obligations under certain circumstances.

 

PRINCIPLE OF QUASI CONTRACT:

“No one shall take advantage at the cost/loss of another”.

 


CIRCUMSTANCES OF QUASI CONTRACT:

There are five different circumstances in which a quasi contract arises:

 

SITUATION 1: SECTION 68;

 CLAIM FOR NECESSARIES SUPPLIED TO A PERSON INCAPABLE OF CONTRACTING OR ON HIS ACCOUNT.

        “If a person supplies necessaries to a person(suited to his condition in life), who is incompetent to contract or to any person whom he is legally bound to support, the supplier can recover a reasonable price of such necessaries from the property of such person”.

 

·      EXPLANATION:

 

·      Incompetent to contract:

1)    Minor.        2) Insane.       3) Insolvent.     4) Convict.

 

·      Necessaries:

1)    Short term e.g food, health, shelter, basic education etc.

 

2)    Long term e.g Higher Education, expenditure on court proceedings etc.

 

·      If the person incompetent to contract is supplied with necessaries (suited to his conditions in life) but he owns no property, the supplier cannot recover the price of such necessaries.

 

 

Examples:

1)    Mustaqim supplies necessaries to Maaz, a minor. Mustaqim can recover the price from Maaz's property.

2)    Hasnain supplies necessaries to the wife and children of an insane person Mustaqim. Hasnain can recover from Mustaqim's property.

 

 

 

SITUATION 2: SECTION 69;

REIMBURSEMENT OF PERSON PAYING MONEY DUE BY ANOTHER IN PAYMENT OF WHICH HE IS INTERESTED.

“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”.

There are two important points in this section:

1)    Person interested in the payment of money.

It is necessary for the person claiming under the provisions of this section to show that he had an interest in paying the money at the time of payment.

 

2)    Bound by law:

The liability for which payment may be made under this section need not to be statutory and extend to any application which is an effective bond in law.

 

 

 

 

Examples:

1)    “A” rented his house to “B”. “B” paid all the outstanding electricity bills of “A” to avoid disconnection of electricity. “B” can recover the payment from “A”.

2)    “B” imported goods and stored it in C's warehouse without paying custom duty. The custom authorities recovered custom duty from “C”. “C” can recover from “B”.

 

 

SITUATION 3:  SECTION 70;

OBLIGATION OF PERSON ENJOYING BENEFIT OF NON-GRATUITOUS ACT.

“When 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 benefits thereof, the latter is bound to make compensation to the former n respect of, or to restore , the thing so done or delivered”.

 

 

Explanation:

 

Non-Gratuitous Act:

    An act which is performed by one person to get compensation from another person is called non- gratuitous act.

The person who performs such act(non-gratuitous act) for the benefit of another person can recover the compensation for such acts.

 

 

 

Examples:

1)    “C”, a coolie, carries the luggage of “B”at a railway station without asking. “B” does not object to it. “C” can demand payment from “B”.

2)    “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.

3)    “A”, a tradesman, leaves goods at B's house by mistake. “B” treats the goods as his own. He is bound to pay “A” for them.

 

 

SITUATION 4: SECTION 71:

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.”

 

Explanation:

·      The finder of goods must take reasonable care of goods.

·      He must try to find the real owner of the goods and must return the goods to him.

 

 

 

Example:

“X”, a guest found a diamond ring at the birthday party for”Y”.  “X” told “Y” and other guests about it.

a)    If “X” finds out the owner, then “X” will have to return the diamond ring to his owner.

b)     If “X” is unable to find the owner, then he can retain the ring.

 

 

SITUATION 5: SECTION 72

 LIABILITY OF PERSON TO WHOM MONEY IS PAID, OR THING DELIVERED, BY MISTAKE OR UNDER COERCION.

“A person to whom money is paid or anything delivered, by mistake or under coercion, must repay or return it”.

Explanation;

 It means if a person by mistake or under coercion pays money or believers goods to another person, the person making the payment or delivering the goods can recover.

 

Examples:

1)    “C” paid money to “B” by mistake. “C” can recover his money from “B”.

2)     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.

  The consignee is entitled to recover so much of the charge as was illegally excessive.

          

                          THE END

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