Quasi Contracts | UGC NET Commerce Preparation Course PDF Download

Understanding Quasi-Contracts Under Indian Contract Law

Chapter-V, section 68 to section 72 of the Indian Contract Act, 1872, discusses a concept known as a "quasi-contract" or certain obligations that resemble those arising from contracts. These obligations, similar to a contract, are recognized as contracts implied in law or quasi-contracts. Unlike a consensual contract based on the parties' agreement, a quasi-contract is not an actual contract entered into intentionally by the parties. Instead, it is a legal fiction created by law, lacking the essential elements required for a typical contract.

Exploring the Concept of Quasi-Contracts

• Quasi-contracts are obligations created by law, not by the parties' mutual assent.
• The term "quasi" is derived from Roman law's concept of "obligation quasi ex contractu."
• A quasi-contract is statutory in nature and does not meet the criteria for a valid contract.

Meaning of Quasi-Contract

Salient Facets of Quasi-Contractual Rights

• A quasi-contract is not as binding as a formal contract.
• It does not rely on the traditional offer and acceptance principle.
• Quasi-contracts are not formed through a mutual agreement but are enforced by legal principles.
• These rights are enforceable against specific individuals rather than the general public.
• They are grounded in notions of fairness, equity, justice, and natural justice principles.

The Doctrine of Quasi Contracts

Types of Quasi Contract 

• Supply of Necessities to Incapable Persons (Section 68): If a person incapable of entering into a contract, or someone legally obligated to support them, receives necessary goods or services from another party, the provider is entitled to reimbursement from the incapable person's assets.
• Payment by Way of a Interested Party (Section 69): Under section 69, if an individual voluntarily pays a debt that another party is responsible for, they are entitled to reimbursement from the debtor.
• Obligation to Pay for Gratuitous Acts (Section 70): Section 70 states that if someone performs a service or provides something to another party without expecting payment, and the recipient benefits from it, the recipient is obliged to compensate the provider for the service or item.
• Responsibilities of a Finder of Lost Goods (Section 71): According to section 71, a person who finds and takes custody of someone else's lost property is obligated to care for the goods as a reasonable person would, similar to the duty of a bailee.

This response presents an educational overview of the Doctrine of Quasi Contracts and its different types, paraphrased and simplified for easy understanding. 

Key Concepts in Quasi Contracts

• Property Found by an Individual: When someone finds an item, they must make reasonable efforts to locate the owner. If the owner is not found, the finder holds the property temporarily and can sell it if necessary.
• Payment of Delivery via Mistake or Coercion (Section 72): This section deals with the responsibility of individuals who receive money or goods by mistake or coercion. They are liable to return the money or goods to the rightful owner.

Conclusion

A quasi-contract, though not expressly defined as a contract under the Indian Contract Act 1872, plays a crucial role based on principles of justice and fairness. It primarily aims to prevent unjust enrichment of one party at the expense of another.
Quasi-contracts come into play in the absence of a written agreement, often mandated by courts to prevent one party from benefiting unfairly due to the actions of another. Despite variations in application, the fundamental essence of quasi-contracts remains consistent.