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a contract possible without offer, acceptance or consideration? If we look at
today’s world, yes there can be such a contract totally based on our social
responsibility. Say, for example, one keeps a parcel at our doorstep, isn’t it
our social responsibility and obligation to return that to the true owner. In
this scenario, a quasi-contractual obligation comes into play.
Here in this article, we’ll be discussing quasi-contracts, quasi-contractual obligations, and there stand under the Indian Contract Act, 1872.
Table of Contents
understand quasi-contractual obligations, one needs to first understand what
are contracts and quasi-contracts.
The obligations arising from a quasi-contract are called quasi-contractual obligations. It is created by law for the sake of equity and justice. It is specifically imposed by law on parties because one of the parties is unjustly enriched. It is a remedy that allows the party to recover the benefits which were conferred by the other party.
Quasi Contractual obligation is based on the maxim, “Nomo debit locuplatari ex-line justice,” which means “as much as earned,” or ‘No man should grow rich out of another person’s loss’. The liability arising from a quasi-contractual obligation is solely based on the principle of ‘unjust enrichment.’ To put it simply, it means no man has the right to get unjustly enriched at the cost of another person’s loss.
Indian Contract Act, 1872, does not specifically define quasi-contract.
However, if we look at the law quasi-contracts can be called a relationship
resembling that a contract. Further, we can define quasi-contracts as a
transaction in which there is no contract between the parties and the law has
created certain rights and obligations between them with is akin to those
created under a contract.
Indian Contract Act, 1872, under sections 68 to 72 provide for five kinds of
this necessities are supplied to people who are incompetent to contract. The
supplier is entitled to recover the price from the property of the incompetent
a person of unsound mind and person who is disqualified by law comes under the
definition of incompetent person under the Indian Contract Act, 1872.
A, a person pays on someone else’s behalf say B, which the other person is
bound by law to pay, then A will be reimbursed by the other person, here, in
this case, B. This thing is known as implied indemnity.
example, one of the properties of Ram is held by Ravi on lease in Punjab. The
revenue generated from Ram’s land is payable to the government in arrears. When
Ram fails to pay the revenue to the government, the government can sell the
land. And according to the Revenue Law, if the land gets sold, the lease
agreement will be annulled. To prevent this from happening, Ravi can pay the
dues to the government and in return Ram can repay him later.
person, say for example does something for someone gratuitously without the
intention to do so and the other person enjoys the benefit. In this case,
section 70 creates an obligation on the person enjoying the benefit of a
non-gratuitous act or for the goods received. He is liable to pay compensation
or if possible to restore the thing done or delivered.
in this case, the person has to prove that
a person who finds goods belonging to another person is known as bailee. He is
essentially the keeper of the goods found and he has certain rights and duties
which include returning the goods to the actual owner.
someone receives money or goods by mistake or under coercion, then he is liable
to repay or return it to the owner.
instance, Peter and Dave rented a house together and they share the rent. Peter
pays the whole rent to the landlord without the knowledge that it was already
paid by Dave. Here, Peter is entitled to be reimbursed by the landlord. In
another example, the lessee/tenant misunderstood the lease agreement and paid
municipal tax erroneously. He is also entitled to be reimbursed by the
the money paid by coercion then also it is recoverable.
a contract consists of an offer and acceptance, which eventually gives rise to
an agreement. The agreement is legally
enforceable becomes a contract. Yet, there are cases wherein the absence of an
agreement the other party is obliged to perform their duty or obligation. Such
obligations are called quasi-contractual obligations. The whole principle of
quasi-contract is an important part of Contracts law and is very often overlooked
but still, it definitely aids the victim who is unjustly enriched, as the whole
basis of quasi-contract is not based on the intricacies of the contract but
rather receiving justice.
at Enterslice, we provide assistance in drafting various types of contracts. For
more information, you can contact our team of experts at Enterslice.
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