Posted January 14, 2014 by advocateguru in Learning Centre
 
 

Quasi Contracts

These contracts are basically the contracts which resembles together. It looks similar to the contract. In order to be a contract valid, it should contain certain essentials like offer, acceptance, and capacity to contract, consideration and free consent. But sometimes the law implies a promise imposing obligations on one party and conferring right in favour of the other even when there is no offer, no acceptance, no consensus ad idem, and in fact, there is neither agreement nor promise. Such cases are not contracts in the strict sense, but the Court recognizes them as relations resembling those of contracts and enforces them as if they were contracts, hence the term quasi-contracts.

A quasi-contract rests on the equitable principle that a person shall not be allowed to enrich himself unjustly at the expense of another. In truth, it is not a contract at all. It is an obligation which the law creates, in the absence of any agreement, when any person is in the possession of one person’s money, or its equivalent, under such circumstances that in equity and good conscience he ought not to retain it, and which in justice and fairness belongs to another. It is the duty and not agreement or intention which defines it. A very simple illustration is money paid under mistake. Equity demands that such money must be paid back.

The following types of quasi-contracts have been dealt within the Indian Contract Act

(a) Necessaries supplied to person incapable of contracting or to anyone whom he is illegally bound to support – Section 68.

(b) Suit for money had and received – Section 69 and 72.

(c)Quantum Meruit

(d) Obligations of a finder of goods – Section 71.

(e) Obligation of person enjoying benefit of a non-gratuitous act. Section 70


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