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What Is a Quasi Contract?

How It Works

Quasi Contract vs. Contract

Types of quasi contract.

Advantages and Disadvantages
Quasi Contract FAQs

The Bottom Line

Business Essentials

Quasi Contract

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

Investopedia / Mira Norian

Quasi contract is another name for a contract implied in law, which acts as a remedy for a dispute between two parties that don't have a contract. A quasi contract is a legal obligation—not a traditional contract—which is decided by a judge for one party to compensate the other. Thus, a quasi contract is a retroactive judgment to correct a circumstance in which one party acquires something at the expense of the other.

These arrangements may be imposed when goods or services are accepted by a party even though they might not have been requested. The acceptance then creates an expectation of payment for the providing party.

Key Takeaways

A quasi contract is a retroactive remedy between two parties who have no contract with one another.
It is created by a judge to correct a circumstance in which one party acquires something at the expense of the other.
The plaintiff must have furnished an asset, item, benefit, or service to another party such that the defendant should have known to pay for it.
The defendant must have accepted, or acknowledged receipt of, the item but made no effort or offer to pay for it even when they know they should.

Understanding Quasi Contracts

Under common-law jurisdictions, quasi contracts originated in the Middle Ages under a form of action known in Latin as indebitatus assumpsit, which translates to being indebted or to have undertaken a debt.

This legal principle was the courts' way of making one party pay the other as if a contract or agreement already existed between them. So the defendant’s obligation to be bound by the an exchange is viewed to be implied by law. From its earliest uses, the quasi contract was typically imposed to enforce restitution obligations.

It would be handed down ordering the defendant to pay restitution to the plaintiff. The restitution, known in Latin as quantum meruit, or the amount deserved, is calculated according to the amount or extent to which the defendant was unjustly enriched.

This remedy is also referred to as a constructive contract as it is constructed by a judge when there is no existing contract between two parties. If there is an agreement or contract already in place, a judge will not create a quasi contract because there is no need to do so.

Implied-in-law contract is an alternate name for a quasi contract.

Quasi contracts outline the obligation of one party to a second when the first receives a benefit or property from the second. A person might knowingly or unknowingly give something of value to another without an agreement being made. It is assumed that a reasonable person would pay for it, give it back, or otherwise compensate the giver upon receiving the item or service.

Quasi contracts are awarded as a remedy to a giver to keep them from being taken advantage of and keep others from being unjustly enriched.

Because the agreement is constructed in a court of law, it is legally enforceable, so neither party has to agree to it. The purpose of the quasi contract is to render a fair outcome in a situation where one party has an advantage over another. The defendant—the party who acquired the property—must pay restitution to the plaintiff—the wronged party—to cover the value of the item.

Requirements

Certain aspects must be in place for a judge to issue a quasi contract:

One party, the plaintiff , must have experienced a loss as a result of a transfer.
The defendant must have or acknowledged receipt of and retained the item of value, but made no effort or offer to pay for it.
The plaintiff must then demonstrate through burden of proof why the defendant receive an unjust enrichment.
The item or service cannot have been given as a gift.
The defendant must have been given a choice to accept or deny the benefit.

Quasi Contract	Contract
Only Implied in Law	Can Be Express or Implied
Ordered by a Judge	Initiated by Party Agreement
No Contract Exists	A Legal Contract Exists

Only Implied in Law : Implied in law means that a payment obligation is created by law, in this case, a judge who renders a remedy.
Ordered by a Judge : Quasi contracts are ordered by a judge because contracts implied in law are not covered under contract law.
No Contract Exists : Quasi contracts are not contracts, they are remedies for disputes between parties that are the result of one party receiving an unjust enrichment.
Can Be Express or Implied : There are generally two types of contracts, express and implied. An express contract is one where terms are laid out and both parties agree to abide by the terms. An implied contract is one where mutual assent is given for an exchange, but there are no explicit terms.
Initiated by Party Agreement : The parties involved in an exchange agree to the exchange.
A Legal Contract Exists : Express and implied contracts are legally recognizable and enforceable.

The types of quasi contract are outlined in sections 68 thru 72 of the Contract Act of 1872, as follows:

Section 68: A person who is incapable of making contracts is provided with the supplies by a third party on behalf of the incapable person or anyone he is legally obligated to support. Third parties can recover the price of the supplier from the property of the unable person.
Section 69: A person who makes a payment on behalf of another party is obligated to pay the money according to law. Therefore, the person who made the payment is entitled to reimbursement from the other party.
Section 70: When a person does something lawfully for another person, or delivers something without intending to do the same gratuitously, the receiving party is obliged to compensate the former party.
Section 71: A person who finds goods that belong to another party and takes ownership of them has the same responsibility as a bailee.
Section 72: Someone who has been paid or delivered under coercion or mistakenly must repay or return the money.

Unjust enrichment is what happens when an individual benefits from a situation inappropriately, either because of luck or because of another person's bad fortune.

Advantages and Disadvantages of Quasi Contracts

Advantages of using a quasi contract include the fact that these legal instruments are typically based on the unjust enrichment principle. This prevents one party from gaining an undue advantage over another. Thus, it is a safeguard for innocent victims of wrongful acts and a legal alternative to compensation for damages, ensuring that the one who provides services or goods gets compensated for the same. In order to comply with quasi contracts, all parties involved are obliged to follow them, as they are created by court order.

There are also some drawbacks or limitations. Those who received benefits negligently, unnecessarily, and by miscount will not be held liable. Although a person can be liable under a quasi contract, he cannot be charged more than the amount he has received under the contract. Thus, there is no provision available for the recovery of more amount than that which has been received by the plaintiff - if the plaintiff obtains only part of the services/goods that he contracted for originally, he cannot claim a compensation as the whole amount is not recovered.

If there's an express agreement between the parties, plaintiffs have to give up all profits. Though a quasi contract is a legal remedy that provides protection from unjust enrichment of the beneficiaries of the services or goods, a plaintiff can get relief only if he can prove that he has suffered losses due to the breach of the contractual obligations of the defendant.

Quasi Contract Pros and Cons

Prevents one party from unfairly benefitting at the expense of another

Court order is legally binding

Not suitable in all cases

Amount cannot include additional damages

What Are Quasi Contracts?

A quasi contract is also known as an "implied contract," in which a defendant is ordered to pay restitution to the plaintiff, or a constructive contract, meaning a contract that is put into existence when no such contract between the parties exists.

What Is a Quasi Contract in Simple Words?

A quasi contract is an obligation between two parties created by a court order rather than an agreement between the parties to prevent enrichment.

What Is a Quasi Contract Example?

An example might be if Person A offers to pay Person B to help them move to a new apartment, and agrees to pay the $100 for the help. The agreement is verbal and not a formal contract. Person B commits to the job, turns down a different job, and shows up on the required day to help with the move. But when Person B shows up, Person A tells them that they are not needed after all and that the job is canceled. Person B files a civil suit to have the missing money paid and a quasi contract might be instituted, if the judge agrees that money is owed.

With a quasi contract, a defendant is required to behave as if there was a legal contract with the plaintiff. It is designed so that one party is not unjustly enriched at the expense of the other. Unjust enrichment is when someone benefits unfairly, either due to circumstance or the other party's misfortune. A quasi contract is rendered by a judge, as a settlement, after the fact, when a formal contract otherwise did not exist.

College of William & Mary Law School, William & Mary Law School Scholarship Repository. " The Concept of Benefit in the Law of Quasi-Contract ," Page 3.

Cornell Law School, Legal Information Institute. " Quantum Meruit ."

Cornell Law School, Legal Information Institute. " Quasi Contract (or Quasi-Contract) ."

India Code. " The Indian Contract Act, 1872 ." Pages 28-29.

Cornell Law School, Legal Information Institute. " Unjust Enrichment ."

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Consensus ad idem

Quasi-contract

All about quasi-contracts and its types

This article has been written by Meera Patel , a B.A. L.L.B student from the Maharaja Sayajirao University, Faculty of Law, Vadodara. This is an exhaustive article that covers quasi-contracts, its types, and other important details in the light of relevant case laws.

This article has been published by Sneha Mahawar .

Table of Contents

What is a contract

A contract is an agreement made between two or more parties that is enforceable by law. Section 2(h) of the Indian Contract Act, 1872 states that “ An agreement enforceable by law is a contract ”. This definition is based on the definition of contracts stated by Frederick Pollock who was an English jurist. His definition states that “ Every agreement and promise enforceable by law is a contract ”.

Sir William Anson who was a British Jurist and a unionist stated that a contract is “ a legally binding agreement between 2 or more persons by which rights are acquired by one or more to acts or forbearance (abstaining from doing something) on the part of others ”

Salmond who was a Scottish politician stated, “ A contract is an agreement creating and defining obligation between two or more persons by which rights are acquired by one or more to acts or forbearance on the part of others ”

Two of the most basic requirements or elements that are needed to create a contract are:

Agreement: An agreement is a promise or a set of promises which is used to form consideration for all the parties involved as mentioned in Section 2(e) of the Indian Contract Act, 1872.
Enforceability by law: All types of agreements are required to be legally sound to be passed as contracts in the eyes of the Courts.

To form an agreement, there must be a proposal or an offer by one of the parties and its acceptance by the other and that is why it is necessary for an agreement in a contract for it to be accepted as a proposal. In simpler terms :

Agreement = Offer + Acceptance.

For example: In a hypothetical situation, Amrita who owns a cow makes an offer to sell the cow to Manish in exchange for 20,000 rupees. Manish gives his consent (acceptance) to buy the cow from Amrita and due to the fact that there exists an offer and an acceptance, an agreement is formulated which in return formulates a contract between the two parties.

Consensus ad idem is an important element that constitutes an agreement and therefore it is an important element for the formulation of the contract. This is a Latin phrase that in literal terms states that all the parties involved in making a contract are on the same page about all the details of the contract and everyone has accepted the offered contractual obligations of each party.

In other words, the parties involved in the agreement must agree on all the subject matters of the agreement in the same sense and time. If there is no consensus ad idem, there is no agreement and therefore there is no contract. For example: In a hypothetical situation, Karan, is the owner of 2 horses one of which is a racehorse and the other one is a show breed horse. Karan intends on selling the show-breed horse. He made an offer to sell the show breed to Lata but Lata thinks that she is purchasing the racehorse from him due to a misunderstanding. There is no consensus ad idem and thus, no contract.

Essential elements of a valid contract

To understand and remember the elements of a valid contract, try to imagine a pizza. Try to visualize a pizza with all its toppings. In this context, just like how the ingredients of a pizza are important to make it edible, the elements that are listed below are required to make a contract legally sound and acceptable in the courts of law. Without the elements listed below, the agreement won’t be a contract. According to Section 10 of the Indian Contract Act, 1872 , all agreements are contracts if they are made by the free consent of the parties involved who are competent to form a contract while keeping in mind that there is a lawful consideration and lawful objects involved in the contract. To become a contract, an agreement must have the following essential elements:

Offer and acceptance: There must be two or more parties to form an agreement. The terms of the offer need to be definite and the acceptance must be absolute.
Intention to create a legally valid offer: When the involved parties decide to enter into an agreement, their intention to create an agreement should have legal validity. If the legal validity factor is missing, then there will be no contract. Agreement of a social or domestic nature does not constitute a legal relationship as there are no such contracts.
Lawful consideration: Section 2(d) of the Indian Contract Act, 1872 states that “ When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise ”. In layman’s language, any agreement enforceable by law must be supported by consideration of both parties.
Competency of a party: Parties who are incompetent to enter into a valid and legally binding contract include minors, mentally unsound minds, and anyone who is not qualified to enter into a contract by law to which they are subject. A flaw incapacity to enter into a contract may arise from idiocy, drunkenness, lunacy, etc too. If a party experiences any such form of flaws, the agreement will not be enforceable.
Free consent: The term ‘free’ means ‘able to act or be done as one wishes and not under the control of another. It means that all the parties should have free consent to enter into an agreement. The absence of free consent due to coercion, undue influence, misrepresentation, etc results in forming a void contract.
Lawful object: Section 23 of the Indian Contract Act, 1872 states that the object of an agreement must be lawful. That means the object must not be illegal in nature which includes drugs, murder, etc, the contracts should not be immoral in nature which includes agreement to break a third party’s marriage, signing contracts to murder an individual, etc and lastly, it should not be opposed to public policy. If any agreement encounters such flaws, then that agreement would be considered unenforceable.

Types of contracts

As mentioned above, we are already familiar with terms such as valid contracts and void contracts, listed below are a few other types of contracts that are acceptable in the eyes of law:

Valid contracts

A valid contract is a legally binding and enforceable agreement. The main factor that qualifies an agreement to be a valid contract is the existence of all the above-mentioned elements.

Illustration: Aditya agrees to sell his car to Nayan for 5,00,000/-. Nayan sends a cheque to Aditya and in return, Aditya sends over the car to Nayan. This is an example of a valid contract.

Void contracts

A contract that ceases to be enforceable by law makes it void.

Illustration: Aditya agrees to pay 20,000/- to Nayan after 5 years for a loan of 18,000/- which is made out to Aditya by Nayan. During the 3rd year of this timeline, Aditya died in an accident and that is why this contract shall be considered void due to its non-enforceable nature under law as per the agreed terms of the contract.

Voidable contract

Voidable contracts are the type of contracts that are basically an agreement that is enforceable for a party/parties and which is not enforceable by law for the other party/parties.

Illustration: Aditya agrees to sell his laptop to Nayan, a 16-year-old teenager for 8,000/-. What makes this a voidable contract is that even though Aditya has made a valid deal, the fact that Nayan is a minor makes the entire agreement a voidable contract. Nayan is not bound to pay and is allowed to repudiate and/ or accept the terms of the contracts as if they choose to repudiate the contract, it will become a void contract but since Nayan decides not to, it becomes a voidable contract. Other than this, a voidable contract is a valid contract.

Illegal contract

As the word states, an agreement that leads to breaking the law or performing something that is deemed to be illegal in the eyes of law is known as an illegal contract. A Contract that opposes public policies is also counted as an illegal contract

Illustration: Aditya is a drug dealer and he agrees to sell weed to Nayan. Even though this contract has all the essential elements required to constitute a contract, the unlawful object still makes the entire contract illegal.

All illegal contracts are void but not all void contracts are illegal as illegal contracts are void ab initio which in literal terms means void from the beginning, unlike the latter one. One more factor to support this statement is the criminal aspect of illegal contracts is that these acts are punishable under law. All the involved parties are prosecuted under the law.

Unenforceable contract

Unenforceable contracts are simply rendered unenforceable by law due to some technicalities. This kind of contract cannot be enforced against any of the parties involved.

Illustrations: Aditya agrees to sing at a concert on the 21st July 2021 but he fractured his legs and broke his spinal cord in an accident, this contract is unenforceable and cannot be used against Aditya.

Contingent contract

Contingent contracts are a simple example of when a promisor needs to meet the contractual obligations only when a certain situation happens. For example: insurance contracts.

Illustrations: Aditya, the owner of an insurance firm is obligated to give a certain amount of money to Nayan, whose car was completely destroyed in an accident.

Quasi-contracts

One more contract that has not been mentioned above is quasi-contracts. Since the main agenda of this article is to understand what a quasi-contract is and to analyze the types of quasi-contracts, let us start by understanding what a quasi-contract means.

The word ‘quasi’ means pseudo or partly or almost and that is why it can also be called a pseudo contract. A quasi-contract is an agreement that is retroactive in nature. These kinds of agreements take place between parties who have no prior contractual commitments or intention of getting into a contract. The judge simply develops the concept of a quasi-contract to rectify situations where one side acquires something at the detriment of the other side. In layman’s language, this type of contract aims to prevent one party from benefiting financially in a situation while financially draining the other party. Such agreements may be enforced by the approval of the party which is responsible for providing the goods or services but it is not necessary to keep this factor in mind before enforcing a quasi-contract.

The only factor that constitutes a quasi-contract is that there lacks an understanding between parties beforehand. Quasi-contracts exaggerate one party’s duties to the other party where the second party is in control of the first party’s personal property. As a remedy, it is the judge’s duty to impose the agreement by the law. To support this statement, the author would like to give an example: in a hypothetical situation, Party A found a wallet on the road which belongs to Party B. By this example shows that Party A owes something to Party B as they now possess Party B’s property indirectly or by mistake. The contract becomes enforceable only if Party A decided to keep Party B’s wallet without trying to return it to the original owner.

A second word for quasi-contracts is implied contracts. A literal meaning is attached to the term implied contract as the defendants are ordered to pay for the damages and the quantum meruit or restitution is measured as per the intensity of the wrong done. Lastly, none of the parties involved are supposed to give consent as the agreement is being established in the court, therefore, making it legally enforceable without consent. The main aim of such contracts is to make a fair decision that will, later on, turn into an outcome that is acceptable to the party that has been wronged.

Elements of a quasi-contract

Listed below are the components required for a judge to issue a quasi-contract:

An individual or as the law recognizes, one claimant. There must also be a defendant who will be responsible and asked to pay the restitution.
The defendant must be willing to recognize or even acknowledge the value of the product/ service in question but has not made any efforts to return it/ pay for it or even made an effort to do something about it.
The complainant needs to prove that the defendant earned wrongful enrichment.

Principle on which quasi-contracts are based

The main principles on which these types of contracts work are justice, equity, and good conscience. This principle is based on a legal maxim ‘ Nemo Debet Locupletari Ex Aliena Jactura ’ which in literal terms means no man must grow rich out of another persons’ loss.

To support this statement, here is an illustration of this principle: In a situation, Pari and Isha enter into a contract where Pari agrees to pay 900 rupees for a bouquet of flowers when it would be delivered to her house by Isha herself. However, Pari mistakenly delivers the bouquet to Anisha’s house and she issues it as a birthday gift and she keeps it for herself. Even though there is no contract between Anisha and Pari, the court shall treat this situation as a quasi-contract and order Anisha to either pay for the flower bouquet or return it in the same condition. Law sees no contract between the parties, it is just that the law imposes contractual liabilities in order to not oversee certain peculiar situations.

There are 5 different types of situations where a quasi-contract can be formulated. All these situations are elaborately discussed under Section 68 to Section 72 of the Indian Contract Act, 1872.

Types of quasi-contracts

Listed below are the 5 types of quasi-contracts that are recognized by law :

“ Necessaries supplied to a person incapable of contracting ”

Necessities supplied to the person who is incapable of contracting is the first example of the situation under which a quasi-contract can be formulated and this situation is explained under Section 68 of the Indian Contract Act, 1872 .

To understand this easily, any person who is incapable of entering into a contract i.e. is a lunatic, minor, mentally incapable of understanding their surroundings, etc. If someone even supplies necessary supplies to such a person even is entitled to get a reimbursement from the property of the person who is incapable in this situation. This rule is applicable whether or not the person does help the incapable person because of an ulterior motive or purely out of humanity.

Illustration: Every month, Pari supplies necessary items to Lata as per her requirement as Lata is a lunatic and is not capable of helping herself out. Even though Lata is broke and does not have money to pay Pari, Pari is entitled to reimbursement from the property of Lata and this is termed as a quasi-contract. To make sure that Pari is reimbursed, she needs to prove that Lata is a lunatic and that the goods she supplied to Lata were necessary items only and that they were given to Lata on time as per her requirements.

“ Payment by an interested person ”

Payment by an interested person is the second situation under which a quasi-contract can be formulated and this situation is explained under Section 69 of the Indian Contract Act, 1872. To understand this type of quasi-contract, the main thing to keep in mind is that if a person pays the money on someone else’s behalf, the other person is bound to pay back the money and reimburse the person by law.

Illustration: Pari is the owner of the land and has leased the land to Lata for a period of three years. Within two months of leasing the land, it was revealed that Pari couldn’t pay the tax revenue to the government and even after sending in notices, she wasn’t able to pay her dues. Thus, the government put out an ad to sell the land. As per the revenue laws, once the land is sold, Lata’s lease shall be annulled. Lata is not interested in letting go of the land therefore she decides to pay the amount due to the government for Pari. in this situation, Pari is obligated to reimburse Lata.

“ Obligation of the person enjoying the benefits of a non-gratuitous act ”

When a person enjoys the benefits of a non-gratuitous act, that person is obligated to repay the person wronged. As per Section 70 of the Indian Contract Act, 1872 it is stated that if a person is legally giving out goods/ products/ services with no intentions behind it of performing a non-gratuitous act for anyone and the person in the wrong graciously uses the goods/ products or services is liable to pay the compensation to the former for the benefits they have been getting from the latter. They may be liable to give back monetary compensation or maybe simply asked to restore the goods used. To get reimbursed, the plaintiff must prove that the services/ goods they delivered were lawful, there was no intention to provide those products/ services graciously, and that the latter did enjoy the benefits of the products/ services.

Illustration: Pari is the owner of a fruit shop. She placed baskets of her fruits on a rack outside her store to keep them fresh. Lata, who was around the store, picked up an apple from the rack and bit into it. This is a situation where Lata is liable to pay monetary compensation to Pari as Pari did not put out her fruits as a gratuitous favor for people.

“Responsibility of finder of goods”

As per Section 71 of the Indian Contract Act, 1872 , if a person finds an item that belongs to someone else and decides to take them into their custody, the former person has to adhere to the responsibilities that include taking good care of the goods, not appropriating the goods and returning it back to the owner in the same condition they found it in.

Illustration: Pari is Lata’s neighbor. One day since Lata wasn’t home, she already paid and delivered the package lying on her doorsteps which was later on found by Pari. She knew that Lata was not going to be home for another 3 days so she picked it up and took it with her. In this situation, Pari is supposed to inform Lata why she picked her parcel and she is obligated as well as liable to return the parcel to Lata in the same condition and if she fails to do so, Pari is supposed to compensate late with either monetary compensation or a replacement of the goods/products that were in the parcel that belonged to Lata.

“ Money paid by mistake or under coercion ”

As per Section 72 of the Indian Contract Act, 1872 , if a person finds that they received money from someone by mistake or because of the fact that they were under coercion then the former is liable to repay or return the money they received in the due course.

Illustrations: Pari received a payment of 5,000/- in her bank account via her UPI ID through Gpay by Lata. In reality, Lata intended to pay that money to Paresh, her brother. After Pari realized that she received the money by mistake, she is liable for the money back to Lata. In similar terms, if money is paid via coercion, oppression, or extortion it is recoverable under this Section of the Indian Contract Act, 1872.

In the case of Hari Ram Sheth Khandsari v. Commissioner of Sales Tax (1958) , the applicant of this case deposited the tax as a major turnover of Khandsari and it was initially taxable at the rate of 2 percent. Because of a mistake, in the fourth quarter, the applicant deposited the tax at the rate of 4 percent which means a total of Rs. 10,198.22 of excess money was deposited. The concept of quasi-contract has been discussed even though the definite term was not used in this case law.

For the very first time, the concept of quasi-contracts was introduced and discussed in the case of Moses v. MacFarlane (2004) . This was an English case and in this case, the ruler of Mansfield stated that the commitment of such sorts or in simpler words the obligation underlying quasi contracts was based on the law as well as the justice with anticipation of not giving out undue advantage to one person that might cost another person.

In the case of Spolka Anonyme v. Fairbairn Lawson Combe Barbour Ltd. (1942) , The courts stated that the obligations which arose in this case and which shall arise in the future where an individual receives the benefits at the cost of another person, then that type of commitment cannot be categorized underneath the law of torts or contracts. They should be categorized under the concept of restitution or quasi-contracts which are also called pseudo contracts.

In the case of the State of Madhya Pradesh v. Bhailal bhai(1964) , as per Section 74 of the Indian Contract Act, 1872 which covers sales tax under mistake, the Supreme Court held that, “ the government to whom the payment has been made by mistake must in law repay it ” as the respondent paid the tax under a mistake of law.

Similarities and differences

Similarities between contracts and quasi-contracts

Differences between contracts and quasi-contracts

All the results of contracts and quasi-contracts are similar in nature.In the context of claiming the compensation of the damages caused to the wronged party, the quasi-contracts are very similar to the contracts. To support this statement, we can look at which states the remedies if any type of quasi-contract is breached in different areas of the Indian Contract Act, 1872.

A quasi-contract is a fictitious contract that has been pointed out by law. It is considered a valuable suggestion by law as it is a cure for the distress of the wronged party which isn’t the case in express contracts.While talking about quasi-contracts, the purpose of the parties is not taken under consideration but it is totally opposite when we talk about express contracts as discussing the purpose here is a vital process. Without understanding the intention of the parties, there would be no contract at all.In the case of a quasi-contract, the entire concept of the contract revolves around the obligation of the parties as they are used to identify and shape the terms and conditions of the contract. On the other hand, the obligations formed are characterized because of the formation of the contract.

To wrap everything up, we can say that, even though there are various types of contracts and some may say that quasi-contract is a type of contract, it is not as there are various differences highlighted in the article above.

A quasi-contract is not a contract in its natural context and therefore it is also named an inverted contract. This is the reason why the term quasi-contract is not stated out there expressively. The most simple principle it follows is that a quasi-contract is a simple and basic contract that will not and cannot supersede the requirement of justice.

https://www.toppr.com/guides/business-laws/indian-contract-act-1872-part-i/types-of-contracts-based-on-validity/
https://blog.ipleaders.in/concept-quasi-contract/
https://www.google.com/search?q=Section+72+of+the+Indian+Contract+Act%2C+1872&oq=Section+72+of+the+Indian+Contract+Act%2C+1872&aqs=chrome..69i57j0i22i30l5.305j0j9&sourceid=chrome&ie=UTF-8

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Quasi Contract

Can there be a contract without offer, acceptance , consideration, etc? Well, yes there can be such a contract based on social responsibility. We call such contracts quasi contract. Let us take a look.

The word ‘Quasi’ means pseudo. Hence, a Quasi contract is a pseudo-contract. When we talk about a valid contact we expect it to have certain elements like offer and acceptance, consideration , the capacity to contract, and free will. But there are other types of contracts as well.

There are cases where the law implies a promise and imposes obligations on one party while conferring rights to the other even when the basic elements of a contract are not present. These promises are not legal contracts, but the Court recognizes them as relations resembling a contract and enforces them like a contract.

These promises/ relations are Quasi contracts. These obligations can also arise due to different social relationships which we will look at in this article .

The core principles behind a Quasi Contract are justice, equity and good conscience. It is based on the maxim: “No man must grow rich out of another persons’ loss.”

Let’s look at an example of a Quasi contract: Peter and Oliver enter a contract under which Peter agrees to deliver a basket of fruits at Oliver’s residence and Oliver promises to pay Rs 1,500 after consuming all the fruits. However, Peter erroneously delivers a basket of fruits at John’s residence instead of Oliver’s. When John gets home he assumes that the fruit basket is a birthday gift and consumes them.

Although there is no contract between Peter and John, the Court treats this as a Quasi-contract and orders John to either return the basket of fruits or pay Peter.

Features of a Quasi Contract

It is usually a right to money and is generally (not always) to a liquated sum of money
The right is not an outcome of an agreement but is imposed by law.
The right is not available against everyone in the world but only against a specific person(s). Hence it resembles a contractual right.

Sections 68 – 72 of the Indian Contract Act, 1872 detail five circumstances under which a Quasi contract comes to exist. Remember, there is no real contract between the parties and the law imposes the contractual liability due to the peculiar circumstances.

Source: Pixabay

Section 68 – Necessaries Supplied to Persons Incapable of Contracting

Imagine a person incapable of entering into a contract like a lunatic or a minor. If a person supplies necessaries suited to the condition in life of such a person, then he can get reimbursement from the property of the incapable person.

John is a lunatic. Peter supplies John with certain necessaries suited to his condition in life. However, John does not have the money or sanity and fails to pay Peter. This is termed as a Quasi contract and Peter is entitled to reimbursement from John’s property.

However, to establish his claim, Peter needs to prove two things:

John is a lunatic
The goods supplied were necessary for John at the time they were sold/ delivered.

Section 69 – Payment by an Interested Person

If a person pays the money on someone else’s behalf which the other person is bound by law to pay, then he is entitled to reimbursement by the other person.

Peter is a zamindar. He has leased his land to John, a farmer. However, Peter fails to pay the revenue due to the government. After sending notices and not receiving the payment, the government releases an advertisement for sale of the land (which is leased to John). According to the Revenue law, once the land is sold, John’s lease agreement is annulled.

John does not want to let go of the land since he has worked hard on the land and it has started yielding good produce. In order to prevent the sale, John pays the government the amount due from Peter. In this scenario, Peter is obligated to repay the said amount to John.

Section 70 – Obligation of Person enjoying the benefits of a Non-Gratuitous Act

Imagine a person lawfully doing something or delivering something to someone without the intention of doing so gratuitously and the other person enjoying the benefits of the act done or goods delivered. In such a case, the other person is liable to pay compensation to the former for the act, or goods received. This compensation can be in money or the other person can, if possible, restore the thing done or delivered.

However, the plaintiff must prove that:

The act that is done or thing delivered was lawful
He did not do so gratuitously
The other person enjoyed the benefits

Section 71 – Responsibility of Finder of Goods

If a person finds goods that belong to someone else and takes them into his custody, then he has to adhere to the following responsibilities:

Take care of the goods as a person of regular prudence
No right to appropriate the goods
Restore the goods to the owner (if found)

Peter owns a flower shop. Olivia visits him to buy a bouquet but forgets her purse in the shop. Unfortunately, there are no documents in the purse to help ascertain her identity. Peter leaves the purse on the checkout counter assuming that she would return to take it.

John, an assistant at Peter’s shop finds the purse lying on the counter and puts it in a drawer without informing Peter. He finished his shift and goes home. When Olivia returns looking for her purse, Peter can’t find it. He is liable for compensation since he did not take care of the purse which any prudent man would have done.

Section 72 – Money paid by Mistake or Under Coercion

If a person receives money or goods by mistake or under coercion, then he is liable to repay or return it.

Let us see an example. Peter misunderstands the terms of the lease and pays municipal tax erroneously. After he realizes his mistake, he approached the municipal authorities for reimbursement. He is entitled to be reimbursed since he had paid the money by mistake.

Similarly, money paid by coercion which includes oppression, extortion or any such means, is recoverable.

Solved Question on Quasi Contract

Q: Peter and Oliver enter a contract under which Peter agrees to deliver a basket of fruits at Oliver’s residence and Oliver promises to pay Rs 1,500 after consuming all the fruits. However, Peter erroneously delivers a basket of fruits at John’s residence instead of Oliver’s. When John gets home he assumes that the fruit basket is a birthday gift and consumes them. Does John have to pay for the goods?

Ans: Yes, John has to pay for the fruit basket. Although there is no contract between Peter and John, the Court treats this as a Quasi contract and orders John to either return the basket of fruits or pay Peter.

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Indian Contract Act 1872: Part II

Who Performs the Contract?
Expressly Void Agreements
Legality of Object and Consideration
Contingent Contracts
Liquidated Damages and Penalty
Performance of Reciprocal Promise
Suit for Damages
Anticipatory and Actual Breach of Contract
Discharge of a Contract

4 responses to “Discharge of a Contract”

K and A had entered into a contract where K was to supply 50,000 phones to A within 2 months from the date of signing of contract. K was to procure the phones from China and deliver the same to A. The rate of the phone was Rs. 5000/- a piece (inclusive of all taxes and duties). At the time of the execution of the contract, the duty was at 5% (five percent). Immediately after the execution of the Agreement, India had increased the duties to 1000% (one thousand percent). Therefore, K was finding it difficult to sell the phones at the price agreed earlier. In the circumstances, kindly advise:

a. How can K discharge such a contract?

b. How can A enforce such a contract?

K can “Discharge of Contract” Under Impossibility of performance, during post-contractual impossibility While the following conditions are satisfying The act should have become impossible after the formation of the contract. 2. The impossibility should have been caused by a reason of some event which was beyond the control of the promissory. 3. The impossibility must not be the result of some act or negligence of the promisor himself.

K can discharge the contract by imposibility or frustration due to unseen changes

In light of the case of registered trustees of the cashew nuts industry development fund V cashew nuts board of Tanzania,civil appeal no:18 of 2001 court of appeal of Tanzania at Dar es saalam (unreported) and the cashew nuts industry act no 18 of 2009. Explain the parties to an agency (name of parties) it provided case and the way in which it was created

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Business Jargons

A Business Encyclopedia

Quasi Contract

Definition : Quasi Contract is a retroactive agreement, determined by a judge with an aim of correcting a situation wherein one party obtains something at the cost of another party. It stops one party from getting an unfair advantage from the situation. It takes place when a dispute exists against the payment of goods and services.

Thus such arrangements rely on the court’s order when no prior agreement exists between the parties concerned. Also, it does not possess all the elements of a valid contract i.e. offer and acceptance, legal enforceability, capacity to contract, consideration , and free consent. In simple words, a quasi-contract is a contract that where one or more elements of a valid contract are absent.

It is based on the principle of equity, justice, and good conscience that says – No one is permitted to be unjustly wealthy when the other person is spending .

In a quasi-contract, the law assumes a promise that enforces obligations on one party and confers right in favor of the other. So, these are not actually contracts but the Court of law perceives them as relations similar to the contracts and effectuates them as if they are contracts .

Examples of Quasi Contract

Mr. Shah ordered a dress online for his wife, as a birthday present. The delivery boy mistakenly delivered the dress to the lady in their neighborhood, and the neighbor used the dress thinking that it was ordered by her brother. In this case, the lady is bound to return the parcel to Mr. Shah or pay the price for that dress.
Sameer went to his friend’s home for group studies and forgot his mobile there, which is found out by his friend’s brother. So, it is the duty of his friend’s brother to return the phone to Sameer.

Salient Features of Quasi Contract

It is an obligation enforced by law upon the party for the benefit of another party, even when there is no contract between the two.
Outcome of such obligations is similar to those resulted out of a regular contract.
Such contracts do not arise from an agreement , rather they are imposed by law.
The foundation of a quasi-contract is the duty of a party and not the promise of the party.
Right under such contract at all times is the right to the money and in most cases, but not every time, to a liquidated sum of money.
Right is entitled to the party against the specific person only and not against the entire world.
The party may file a suit for breach using the same process as in the case of an ordinary contract.

Cases Deemed as Quasi Contract

Claims for necessaries supplied to an incompetent person

When a person lacks the capacity to contract, i.e. person of unsound mind or a minor or anyone who is dependent on that incompetent person, the person who has supplied necessaries to that person is entitled to recover the same from the property of such person and if the incapable person does not own any property nothing is payable.

Payment by an interested person

In case payment of money is made by an interested person on behalf of another person, who is legally bound to pay, then the interested person is entitled to reimburse the amount paid from the person, who was originally liable for the payment.

Duty of a party enjoying the benefit of a non-gratuitous act

Any act is non-gratuitous, which is not performed free of charge. If a person lawfully performs an act for another person or delivers anything, having no intention to do it gratuitously, i.e. free of charge and the other party gets the benefit of it, then the latter is obligated to compensate for the same or restore what is performed or delivered. And so, the plaintiff is required to prove:

That there is the lawful performance of the act or delivery of the thing in question.
That the plaintiff has not done or delivered anything gratuitously, i.e. free of charge.
That the defendant has enjoyed the benefits arising out of the act or thing.

Finder of goods

When a person finds goods that are someone else’s property and keeps the same in his custody, has the same responsibility, as that of a bailee, in a contract of bailment . So, it is the duty of the finder of the goods to find the actual owner and return the goods.

Responsibilities of the finder of goods :

He has to take good care of the property, as the normal person would take.
He is not allowed to appropriate the goods and
He must restore the goods whenever the owner is found.

The finder of the goods can recover the expenses incurred on storing and maintaining the goods belonging to the owner.

Money paid by mistake or coercion

When money is paid by any party either by mistake or under coercion , the party who has received the money must return or restore it. Here, the word coercion is not covered under section 15, however, it means and includes money obtained by way of extortion or oppression.

A Word from Business Jargons

The term ‘Quasi Contract’ means the ones that resemble a contract and they give rise to legal obligations as a regular contract does. However, they are entered into without any enforceable agreement. Also, there is no intention of the parties, to enter into a contract.

Related terms:

Voidable Contract
Void Contract
Contract of Agency
Contract of Indemnity

Reader Interactions

Harshada says

June 15, 2022 at 8:18 pm

Very nice answer

5 Circumstances of Quasi Contracts as Per the Indian Contract Act

The word quasi means pseudo. The term pseudo means resembling or imitating or supposed or purporting to be but not really so. In simpler terms, it means false or not genuine. Thus we can also say that quasi contract is a pseudo-contract.

Sections 68 to 72 of the Indian Contract Act deal with certain relations resembling those created by contract. These obligations are known as quasi contracts .

Quasi contract is not a full-fledged contract because there is no offer and acceptance by the parties. But there are some circumstances where the contractual obligation arises. These five circumstances of quasi contracts are:

Claim for Necessaries Supplied to Person Incapable of Contracting, or on His Account
Interested Person
Obligation of Person Enjoying Benefits of Non-Gratuitous Act
Responsibility of Finder of Goods
Liability of Person to Whom Money Is Paid, or Thing Delivered, by Mistake or Under Coercion

Let us read more about these.

1. Claim for Necessaries Supplied to Person Incapable of Contracting, or on His Account

Section 68 of the Contract Act

Where one person supplies necessaries suited to the condition in life of a person who is incompetent to contract (minor or lunatic) or to anyone whom such incompetent person is legally bound to support.

For example, to a lunatic’s wife or children.

The person who is supplying is entitled to recover from the property of such an incompetent person.

Note : Such an incompetent person is not personally liable.

2. Interested Person

Section 69 of the Contract Act

For the application of this section following two essentials are there: I. One person is interested in the payment of money, which is why he pays for it. II. Another person is bound by law to pay the same, but he fails to pay.

The person, so making the payment is entitled to recover the amount by the person who was bound to pay.

3. Obligation of Person Enjoying Benefits of Non-Gratuitous Act

Section 70 of the Contract Act

For the application of this section following conditions are to be satisfied: I. A person should lawfully do something for another person or should deliver something to him. II. If the person making the payment or delivering the thing must not do so gratuitously, which means he should expect payment for the same. III. The other person should enjoy the benefits of this payment or the delivery of the thing.

When all the above conditions are satisfied, the person receiving the benefit becomes bound to pay the compensation to the person conferring the benefit.

Enjoyment of benefit by the defendant is necessary.

4. Responsibility of Finder of Goods

Section 71 of the Contract Act

Section 71 is another situation of quasi contract when a person is the finder of goods.

Finder of goods is a person who finds goods belonging to another and takes the goods into his custody. Although, as between the finder and the owner of the goods, there is no contract, yet the following responsibility has been fixed by section 71 on the finder of goods.

The position of the finder of goods is similar to the bailee .

The finder of goods is bound to take as much care of goods as a man of ordinary prudence would do.

It may be noted that the position of the finder of goods is that of a bailee only against the true owner of the goods, and he is bound to return the goods to the owner. Finder’s title is better than everybody except the true owner.

When a finder of goods returns the property to the true owner, then he is entitled to get the expenses from the true owner, which he has expended regarding the goods.

5. Liability of Person to Whom Money Is Paid, or Thing Delivered, by Mistake or Under Coercion

Section 72 of Contract Act

Section 72 covers a situation where money has been paid or anything delivered by one person to another, either by mistake or under coercion. According to this section, the person to whom the money has been paid or anything delivered by mistake or under coercion must repay or return it.

Read Next: 1. Essential Elements of a Valid Contract. 2. Important Doctrines Under the Indian Contract Act

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Trends in Litigation, Part 3: Oral Contracts and Quasi-Contracts

Adrienne Koch's third in her a four-part series that examines how litigation can shape the evolution of best practices in the real estate industry. This article focuses on circumstances in which contractual or contract-like liability can arise even in the absence of a written contract, and the importance of a drafting approach to avoid surprises.

July 09, 2024 at 10:00 AM

6 minute read

Contractual Disputes

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This article is the third in a four-part series that examines how litigation—and, more specifically, its results—can shape the evolution of best practices in the real estate industry. The first article discussed some of the hazards of statutes of limitations; the second counseled caution in drafting “good guy guaranties” in light of certain developments in the case law.

This third article will focus on circumstances in which contractual or contract-like liability can arise even in the absence of a written contract, and the corresponding importance of a comprehensive drafting approach in order to avoid surprises.

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quasi contract assignment pdf

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What Is a Quasi Contract?

How It Works

Quasi Contract vs. Contract

Types of quasi contract.

Advantages and Disadvantages
Quasi Contract FAQs

The Bottom Line

Business Essentials
Quasi Contract

Investopedia / Mira Norian

Key Takeaways

A quasi contract is a retroactive remedy between two parties who have no contract with one another.
It is created by a judge to correct a circumstance in which one party acquires something at the expense of the other.
The plaintiff must have furnished an asset, item, benefit, or service to another party such that the defendant should have known to pay for it.
The defendant must have accepted, or acknowledged receipt of, the item but made no effort or offer to pay for it even when they know they should.

Understanding Quasi Contracts

Implied-in-law contract is an alternate name for a quasi contract.

Quasi contracts are awarded as a remedy to a giver to keep them from being taken advantage of and keep others from being unjustly enriched.

Requirements

Certain aspects must be in place for a judge to issue a quasi contract:

One party, the plaintiff , must have experienced a loss as a result of a transfer.
The defendant must have or acknowledged receipt of and retained the item of value, but made no effort or offer to pay for it.
The plaintiff must then demonstrate through burden of proof why the defendant receive an unjust enrichment.
The item or service cannot have been given as a gift.
The defendant must have been given a choice to accept or deny the benefit.

Quasi Contract	Contract
Only Implied in Law	Can Be Express or Implied
Ordered by a Judge	Initiated by Party Agreement
No Contract Exists	A Legal Contract Exists

Only Implied in Law : Implied in law means that a payment obligation is created by law, in this case, a judge who renders a remedy.
Ordered by a Judge : Quasi contracts are ordered by a judge because contracts implied in law are not covered under contract law.
No Contract Exists : Quasi contracts are not contracts, they are remedies for disputes between parties that are the result of one party receiving an unjust enrichment.
Can Be Express or Implied : There are generally two types of contracts, express and implied. An express contract is one where terms are laid out and both parties agree to abide by the terms. An implied contract is one where mutual assent is given for an exchange, but there are no explicit terms.
Initiated by Party Agreement : The parties involved in an exchange agree to the exchange.
A Legal Contract Exists : Express and implied contracts are legally recognizable and enforceable.

The types of quasi contract are outlined in sections 68 thru 72 of the Contract Act of 1872, as follows:

Section 68: A person who is incapable of making contracts is provided with the supplies by a third party on behalf of the incapable person or anyone he is legally obligated to support. Third parties can recover the price of the supplier from the property of the unable person.
Section 69: A person who makes a payment on behalf of another party is obligated to pay the money according to law. Therefore, the person who made the payment is entitled to reimbursement from the other party.
Section 70: When a person does something lawfully for another person, or delivers something without intending to do the same gratuitously, the receiving party is obliged to compensate the former party.
Section 71: A person who finds goods that belong to another party and takes ownership of them has the same responsibility as a bailee.
Section 72: Someone who has been paid or delivered under coercion or mistakenly must repay or return the money.

Unjust enrichment is what happens when an individual benefits from a situation inappropriately, either because of luck or because of another person's bad fortune.

Advantages and Disadvantages of Quasi Contracts

Quasi Contract Pros and Cons

Prevents one party from unfairly benefitting at the expense of another

Court order is legally binding

Not suitable in all cases

Amount cannot include additional damages

What Are Quasi Contracts?

What Is a Quasi Contract in Simple Words?

A quasi contract is an obligation between two parties created by a court order rather than an agreement between the parties to prevent enrichment.

What Is a Quasi Contract Example?

College of William & Mary Law School, William & Mary Law School Scholarship Repository. " The Concept of Benefit in the Law of Quasi-Contract ," Page 3.

Cornell Law School, Legal Information Institute. " Quantum Meruit ."

Cornell Law School, Legal Information Institute. " Quasi Contract (or Quasi-Contract) ."

India Code. " The Indian Contract Act, 1872 ." Pages 28-29.

Cornell Law School, Legal Information Institute. " Unjust Enrichment ."

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Definition of quasi contract, what is a quasi contract.

Teresa’s brother, Eric, tries to talk her into building a greenhouse in her large back yard. She declines, but Eric is convinced that, if she were surprised by a lovely greenhouse, she would love it. Knowing that Teresa makes good money, and could easily afford the greenhouse, Eric contacts greenhouse builder John, and arranges to have him erect the structure while his sister is at work one day.

A quasi contract will only afford as much recovery as necessary to prevent one party from being unjustly enriched. In the example above, it would be unfair for Teresa to benefit from the new greenhouse at John’s expense, even though she never intended to enter into a contract with him.

History of Quasi Contract

Unjust enrichment, requirements for quasi contract, quasi contract example involving the construction of houses on two properties.

The court found that no promise had existed on Terra’s part to pay Salamon for the value of the partially completed houses. However, the court found that Terra had been unjustly enriched, as he then had partially-built structures on his properties. The court imposed a quasi contract, awarding Salamon $15,000 – the value of the benefits Terra had received – to compensate Salamon for his labor and materials.

“Where services are rendered by one party and voluntarily accepted by another, the presumption that there is an expectation of payment therefor, as well as an implied promise of payment for the reasonable worth of those services, may be rebutted by a showing of strong self-interest in the outcome of the transaction by the party furnishing those services. Compensation on a quasi contract theory is not mandated where the services were rendered simply to gain a business advantage or where the plaintiff did not contemplate a personal fee.”

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Featured Student Assignments (LawSikho)

Contracts and doctrine of quasi-contracts in India

This article has been written by Vimala Devi pursuing a Diploma in International Contract Negotiation, Drafting and Enforcement course from LawSikho and edited by Shashwat Kaushik .

This article has been published by Shashwat Kaushik .

Table of Contents

Introduction

A contract is the term that is defined under subsection (h) of Section 2 of the Indian Contract Act of 1872 , that “an agreement should be enforceable by law.” There is no definition for quasi contracts under the Indian Contract Act, but we can see the provisions that covered quasi-contracts under the statute of the Act 1872, from sections 68 to 72 . The term quasi-contracts is the combination of two words, “quasi” and “contract.” Quasi means nothing but “Pseudo,” which is not a real contract. For a valid contract, there must be an offer, acceptance, consideration and the capacity to contract. A contract that is formed without any offer or acceptance but is still enforceable by law is a quasi-contract. Quasi-contracts are based on the principle of the Latin term “Quantum Meruit,” which denotes “as much as he deserved.” It purely depends on the doctrines of equity and justice.

For example: A and B made a contract where A agreed to deliver the dress to B’s residence and B promised to pay Rs. 3000 for it after delivering it to him. Here, A mistakenly delivers the dress to C’s residence instead of B. When C got home, he assumed that the dress was an anniversary gift and got it. Here, there was no contract between A and C but the court considered this a quasi-contract and ordered C to either pay for the dress or return the dress to A.

We have to note one important thing that quasi contracts differ from the other contracts actually made by the parties. Quasi -contracts are considered a legal tool to prevent one party from benefiting unjustly from the other party without incurring any expenses or contractual relationship.

Essentials of contracts and quasi-contracts

The essentials of the contract are explained under the provisions of Section 10 of the Indian Contract Act:

There should be an agreement between the parties that is enforceable by law.
Both parties should give their consent to act upon the same thing, and the consent should not be based on any force or coercion.
The contract must be made by the competent parties.
The consideration and the object should not be unlawful, i.e., against law.
It must be registered when the law in force requires it.

The following are the essentials in the quasi contracts:

It is created by the promise or relationship, not by the actual contract.
Right in personam.
It is based on the principle of “prevention of unjust enrichment of one person at the cost of another.”
There is no agreement between the parties.
A valid contract is not required under this contract.

Doctrine of quasi-contracts

Fairness and equity.

It would be unfair when one party is getting benefits and the other party is suffering. To ensure that no party is unjustly enriched and each party is treated fairly, it depends on the principles of fairness and equity. Fairness means that each party is treated equally and has the same opportunities. Equity means that each party’s needs are taken into account and that those who are most in need are given the most help.

There are a number of ways to ensure fairness and equity in a situation where one party is getting benefits and the other party is suffering. One way is to require the party that is benefiting to pay compensation to the party that is suffering. For example, the company that is polluting the environment could be required to pay for the clean-up of the pollution or to provide financial assistance to the people who are living near the factory. Another way to ensure fairness and equity is to regulate the activities of the party that is benefiting. For example, the government could pass laws that require companies to reduce their pollution or provide safe working conditions for their employees.

Ensuring fairness and equity is important for a number of reasons. First, it helps to create a more just and equitable society. Second, it can help to prevent conflict and social unrest. Third, it can help to promote economic growth and development.

Restitution

The compensation should be provided by the party who received the benefit to the conferred party to rectify any profit obtained by one party at the expense of another. This is necessary to ensure that both parties are treated fairly and that no one party is unfairly enriched at the expense of another.

There are a number of ways to calculate compensation. One common method is to use the difference between the value of the benefit received by the party who received the benefit and the value of the benefit that would have been received by the conferred party if the benefit had not been conferred. Another method is to use the reasonable cost of providing the benefit.

In some cases, it may be difficult to calculate compensation. For example, if the benefit is intangible, such as a good reputation, it may be difficult to determine its value. In these cases, it may be necessary to use a more subjective approach, such as determining the amount of compensation that would be fair and reasonable in the circumstances.

The amount of compensation that is awarded will depend on the specific facts of the case. However, the goal of compensation is to ensure that both parties are treated fairly and that no one party is unfairly enriched at the expense of another.

Prevention of unjust enrichment

The important principle of a quasi contract is to prevent unjust enrichment and to treat the parties fairly when one party gains a benefit from the other party without any proper justification. A quasi contract is a legal fiction created by the courts to prevent unjust enrichment. It is not a real contract, but it is treated as if it were a contract for the purposes of enforcing the obligation to pay for a benefit received.

Quasi contracts are created when one party receives a benefit from another party, but there is no valid contract between the parties. This can happen in a variety of situations, such as when:

A person provides services to another person without being asked.
A person pays for goods or services that are never delivered.
A person is injured or suffers damages as a result of another person’s negligence.

In these cases, the courts will step in to prevent unjust enrichment by requiring the person who received the benefit to pay for it. The amount of the payment will be based on the reasonable value of the benefit received.

Quasi contracts are designed to ensure that parties are treated fairly when one party gains a benefit from the other party without any proper justification. By preventing unjust enrichment, quasi contracts help to promote justice and fairness in the law.

Nature of remedy

Quasi-contracts are not actual contracts but rather legal obligations that arise out of a person’s actions or omissions. They are created by the law to prevent unjust enrichment, which occurs when one person benefits at the expense of another.

There are two main types of quasi-contracts:

Constructive trusts: These arise when a person has been unjustly enriched by another’s mistake or wrongdoing. For example, if someone receives money that was mistakenly sent to them, they have a duty to return it.
Equitable estoppel: These arise when a person has led another to believe that they will perform a certain act, and the other person relies on that belief to their detriment. For example, if someone promises to sell you a house and you take steps to prepare to move in, they cannot later back out of the deal.

Quasi-contracts provide a legal remedy for the parties to restore the affected party to their rightful position. For example, if someone is unjustly enriched by another’s mistake, the court may order them to return the money. If someone is led to believe that they will perform a certain act, and they rely on that belief to their detriment, the court may order the other person to perform the act.

Quasi-contracts are an important part of the law because they help to prevent unjust enrichment and to protect people from being taken advantage of. They provide a way for the courts to ensure that people are held accountable for their actions and that everyone is treated fairly.

Basis of contracts

Contracts are based on the basis of formation and performance.

Express – The contracts are either in oral or written form.
Implied – Gestures or actions are used in implied contracts.

Performance:

Executed- It is a fully executed contract signed by both parties, even though the requirements were not met.
Executory- An executed contract is one where the contract has already been executed but has not been fully executed, i.e., to fulfil the remaining obligations as stated in the agreement.
Unilateral- It is like one side of the coin on which only one party has to perform its obligations.
Bilateral- Each party agrees to perform their obligations from each side.

Types of contracts and quasi-contracts

Valid contract- Valid contracts are contracts that are legally binding to the parties. Provision 10 of the Act defines the essentials of a valid contract.
Void contract- Contracts that are valid when they were originally made by the parties but, in due course, become void due to some circumstances.
Voidable contract- When contracts are executed by force, undue influence, mistake, misrepresentation or coercion, they should not be legally enforceable. It becomes void.
Contingent contract- A “contingent contract” is a contract to do or not to do something if some event, collateral to such a contract, does or does not happen.
Unenforceable contract- A contract that cannot be enforced by the court due to issues like technical defects in the contract, lapse of time and so on.
Illegal contract- An agreement that has been created against law or public policy is considered an illegal contract. For example: selling marijuana drugs to the public.

Quasi-contracts

Necessaries supplied to incapable person: (section 68).

When the necessities are supplied by the person to whom he is legally bound to support and incapable of entering into the contract, the supplied furnished person is entitled to reimbursement from the property of such incapable person.

Illustrations: A supplies B, a lunatic, with necessaries suitable to his condition in life. A is entitled to be reimbursed from B’s property.

Reimbursement of person which he is interested (Section 69)

A person who is willing to pay when another is bound by law to pay, and therefore who pays it, is entitled to reimbursement by the other.

Illustration: “D” is a landlord. Y holds one of D’s lands on a lease in Chennai. The revenue from D’s land is in arrears, payable to the government. The land ends up being advertised for sale by the government. Under the revenue law, if the land is sold, it will result in the annulment of Y’s lease. To stop the sale, Y pays D’s dues. In such a situation, D is bound to pay back Y.

Obligation to pay for non-gratuitous acts: (Section 70)

When an individual lawfully works on something or delivers for another person, not intending to do it so gratuitously and another person enjoys the benefit, the latter is bound to pay the compensation for the former in respect of the things done or delivered.

Illustration: A, a salesman leaves some grocery items at B’s door by mistake and B treats the goods as his own. B is bound to pay A for them.

Responsibility of finder of goods: (Section 71)

Any person who finds the goods and takes them into his custody that do not belong to him possesses the same responsibility as the bailee.

Liability of person when something is delivered by mistake or under coercion (Section 72)

When money has been paid or delivered by a person by mistake or under coercion, he must repay or return it.

Illustration: A and B jointly owe 100 rupees to C, A alone pays the amount to C, and B, not knowing this fact, pays 100 rupees over again to C. C is bound to repay the amount to B.

Advantages and disadvantages of quasi-contracts

The main advantages of a quasi contract involve the concept that these legal tools depend upon the principle of unjust enrichment and prevent one party from getting unjust benefits from the other party without incurring any expenses or contractual relationship. Therefore, it protects the aggrieved party and provides legal remedy to him by compensating for the damages incurred by him.

However, there are also some cons involved in quasi contracts. There is no provision for recovery of a higher amount than that which has been received by the plaintiff. Thus, no person is charged more than the amount he originally received under the contract; he cannot demand compensation as the whole amount has not been recovered. Even though a quasi-contract is considered a legal remedy, a plaintiff can get relief only after he proves his losses due to the breach of contractual obligations by the defendant.

The recovery of quasi contracts

Under quasi -contracts, there are three situations for the recovery:

There should be an absence of a contract that allows the plaintiff to be compensated.
The existence of the contract is not enforceable.
The plaintiff’s receipt of some type of benefit while breaching an existing contract.

Role of quasi contract and the court

Generally, disputes between the parties will arise when there is overpayment for the services or goods rendered by one party to the other based on the actual contracts. When there is no agreement between parties, the court will create a quasi-contract as a substitute for a contract to prevent unfair enrichment and promote fair treatment or equity between the parties involved in the dispute.

Differences between contracts and quasi-contracts


There should be an offer, an acceptance and an agreement.	It is a Pseudo-contract and there is no agreement.
The liability of the contract involved between the parties.	It wholly depends on equity, justice, and a good conscience.
It is a right, both personal and legal.	It is strictly available against one person only and not against the entire world. i.e., right in personam only.
It is created by contract.	It is created by law.

State of Haryana vs. Raja Ram (2017)

According to the Supreme Court of India, the existence of a legal contract is not necessary for the creation of quasi-contracts. In this instance, the court emphasised the importance of the unjust enrichment principle and the avoidance of unfair benefits in figuring out the obligation resulting from a quasi-contractual connection.

State of Rajasthan vs. Basant Nahata (2019)

The Rajasthan High Court ruled that a quasi-contract can arise when a party makes payments on behalf of another party, and such payments are not voluntary or without any obligation. The Court held that the party making the payments is entitled to reimbursement or compensation based on quasi-contractual principles.

State of Madhya Pradesh vs. Sahi Infracon India Pvt. Ltd. (2021)

The Madhya Pradesh High Court held that the principle of unjust enrichment is a crucial factor in determining the liability arising from a quasi-contractual relationship. The Court ruled that if one party has received a benefit or advantage at the expense of another, the principle of restitution should be applied to restore the aggrieved party to their original position.

Quasi-contracts act as an important legal remedy that fills the gaps in contractual relationships and wholly depends upon the principles of restitution, the prevention of unjust enrichment and the promotion of equitable outcomes. When quasi contracts are not formed by express agreement, it is imposed by law to prevent the loss of one party from unjustly benefiting at the expense of another.

Individuals, businesses, and legal practitioners can navigate contractual relationships more effectively and ensure equitable outcomes by comprehending the principles and legal framework surrounding quasi-contracts. Quasi-contracts play an important role in promoting fairness, upholding restitution, and preventing unjust enrichment within the legal landscape. Understanding and applying these principles contributes to a more just and equitable society in the realm of contractual obligations.

https://lawbhoomi.com/law-of-contracts-meaning-nature-and-important-definitions/
https://www.toppr.com/guides/business-laws/indian-contract-act-1872-part-ii/quasi-contract/
https://legalstudymaterial.com/wp-content/uploads/2021/10/Quasi-contract-under-Indian-contract-act.pdf
https://www.lawctopus.com/academike/contracts-and-quasi-contracts/
https://lawtrend.in/what-are-the-types-of-contract-under-the-indian-contract-act-1872/
https://www.writinglaw.com/quasi-contracts-in-india/
https://unacademy.com/content/upsc/study-material/law/quasi-contract/
https://www.northeastlawjournal.com/post/quasi-contracts-the-indian-contract-act-1872
https://lawnotes.co/quasi-contracts-2/
https://enterslice.com/learning/quasi-contractual-obligations/

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quasi contract (or quasi-contract)

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A quasi contract is a legal obligation imposed by law to prevent unjust enrichment . This is also called a contract implied in law or a constructive contract . A quasi contract may be presumed by a court in the absence of a true contract , but not where a contract—either express or implied in fact —covering the same subject matter already exists.

Because a quasi contract is not a true contract, mutual assent is not necessary, and a court may impose an obligation without regard to the intent of the parties. When a party sues for damages under a quasi-contract, the remedy is typically restitution or recovery under a theory of quantum meruit . Liability is determined on a case-by-case basis.

The concept of a quasi contract in Bailey v. West, 249 A.2d 414 . While recognizing the doctrine of quasi contract, the Court held that “the essential elements of a quasi-contract are a benefit conferred upon defendant by plaintiff , appreciation by defendant of such benefit, and acceptance and retention by defendant of such benefit under such circumstances that it would be inequitable to retain the benefit without payment of the value thereof”.

[Last updated in March of 2022 by the Wex Definitions Team ]

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ICAI Notes 1.5 - Contingent and Quasi Contract - CA Foundation PDF Download

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Learning objectives

Have clarity about the basic characteristics of ‘Contingent contract’ and ‘quasi-contract’ so that you are able to distinguish between a contract of any of these types and a simple contract.
Be familiar with the rules relating to enforcement of these in order to gain an understanding of rights and obligations of the parties to the contract.

In this unit we shall briefly examine what is called a ‘contingent contract’, its essentials and the rules regarding enforcement of this type of contracts. Again, the Contract Act recognises certain cases in which an obligation is created without a contract. Such obligations arise out of certain relations which cannot be called as contracts in the strict sense. There is no offer, no acceptance, no consensus ad idem and in fact neither agreement nor promise and yet the law imposes an obligation on one party and confers a right in favour of the other. We shall have a look on these cases of ‘Quasi-contracts’.

1.43 WHAT IS A CONTINGENT CONTRACT ? According to Section 31 of the Act, contingent contract is a contract to do or not to do something, if some event collateral to such contract, does or does not happen. Contracts of insurance are of this class. Example : A contracts to pay B Rs. 1,00,000 if B’s house is destroyed by fire. This is a contingent contract.

1.44 ESSENTIALS OF A CONTINGENT CONTRACT (1) The performance of a contingent contract is made dependent upon the happening or non-happening of some event. A contract may be subject to a condition precedent or subsequent. (2)The event on which the performance is made to depend, is an event collateral to the contract, i.e., it does not form part of the reciprocal promises which constitute the contract. Thus the event should neither be a performance promised, nor the consideration for a promise. Thus (i) where A agrees to deliver 100 bags of wheat and B agrees to pay the price only afterwards, the contract is a conditional contract and not contingent; because the event on which B’s obligation is made to depend is part of the promise itself and not a collateral event. (ii) Similarly, where A promises to pay B Rs. 1,00,000 if he marries C, it is not a contingent contract. (3) The contingent event should not be the mere will of the promisor. For instance, if A promises to pay B Rs. 10,000, if he so chose, it is not a contingent contract. (In fact, it is not a contract at all). However, where the event is within the promisor’s will but not merely his will, it may be contingent contract. For example, if A promises to pay B Rs. 10,000 if A left Delhi for Bombay on a particular day, it is a contingent contract, because going to Bombay is an event no doubt within A’s will, but is not merely his will.

1.45 RULES RELATING TO ENFORCEMENT Enforcement of contracts contingent on an event ‘happening’ : Where a contingent contract is made to do or not to do anything if an uncertain future event happens, it cannot be enforced by law unless and until that event has happened. If the event becomes impossible, such contracts become void. To illustrate this concept, let us take an example. X entered into a contract with Y to purchase Y’s buffalo, if X survives Z. In view of the said principle of law, the contract, in the instant case, could not be enforced by law unless and until Z died during the life-time of X. Enforcement of contracts contingent on an event ‘not-happening’ : Where a contingent contract is made to do or not to do anything if an uncertain future event does not happen it can be enforced only when the happening of that event becomes impossible and not before. For example, P agreed to pay Q a sum of money, if a certain ship does not return. The ship was sunk. The contract could be enforced as the ship would never return in the circumstances. When shall an event on which contract is contingent be deemed impossible, if it is the future conduct of a living person : Suppose, the future event on which a contract is contingent is the way in which a person will act at an unspecified time. In such a case, the event shall be considered to have become impossible when such person does anything which renders it impossible that he should so act within any definite time or otherwise than under further contingencies. For instance, A agrees to pay B a sum of money if A marries C; C marries D. The marriage, of A to C is now to be considered impossible, although it is possible that D may die and that C may afterwards marry A. Agreement contingent on impossible event (Section 36) : A contingent agreement to do or not to do anything, if an impossible event happens, is void. The impossibility of the event may be or may not be known to the parties to the agreement at the time when they entered into it. For example X agrees to pay Y 1,000 rupees if two straight lines should enclose a space. The agreement is void.

1.46 WHAT IS A QUASI-CONTRACT ?

ICAI Notes 1.5 - Contingent and Quasi Contract - CA Foundation

1.47 TYPES OF QUASI-CONTRACTS

Under the provisions of the Indian Contract Act, the relationship of quasi contract is deemed to have come to exist in five different circumstances which we shall presently dilate upon. But you will notice that in none of these cases there comes into existence any contract between the parties in the real sense. Due to peculiar circumstances in which they are placed, the law imposes in each of these cases of contractual liability. (a) Claim for necessaries supplied to persons incapable of contracting (Section 68): If necessaries are supplied to a person who is incapable of contracting, e.g. minor or a person of unsound mind, the supplier is entitled to claim their price from the property of such a person. Accordingly, if A supplies to B, a lunatic, necessaries suited to B’s status in life, A would be entitled to recover their price from B’s property. He would also be able to recover the price for necessaries supplied by him to his (B’s) wife or minor child since B is legally bound to support them. However, if B has no property, nothing would be realisable. You should, however, note that in such circumstances, the price only of necessaries and not of articles of luxury, can be recovered. To establish his claim, the supplier must prove not only that the goods were supplied to the person who was minor or a lunatic but also that they were suitable to his actual requirements at the time of the sale and delivery. Similarly, if money has been advanced in like circumstances for the purchase of necessaries, its reimbursement can be claimed. (b) Right to recover money paid for another person : A person who has paid a sum of money which another is obliged to pay, is entitled to be reimbursed by that other person provided the payment has been made by him to protect his own interest. (c) Obligation of a person enjoying benefits of non-gratuitous act (Section 70): Such an obligation arises under the provision of Section 70 reproduced below: “Where 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 benefit thereof, the latter is bound to make compensation to the former in respect of, or to restore, the thing so done or delivered.” It thus follows that for a suit to succeed, the plaintiff must prove: (i) that he had done the act or had delivered the thing lawfully; (ii) that he did not do so gratuitously; and

(iii) that the other person enjoyed the benefit. (d) Responsibility of a finder of goods: Such a responsibility arises under Section 71 which is reproduced below: “A person who finds goods belonging to another and takes them into his custody is subject to the same responsibility as a bailee”. He is, therefore, required to take proper care of things found, not to appropriate it to his own use and, when the owner is traced, to restore it to the owner. Further, he must take as much care of the goods found as a man of ordinary prudence would, under similar circumstances, take care of his own goods of the same bulk, quantity and value as those of the goods found. Let us exemplify this rule by means of an illustration. P, a customer in D’s shop, puts down a broach with her coat and forgets to pick it up. One of D’s assistants found it and it was placed in a drawer over the weekend. On Monday, it was discovered as missing. D was liable to P in view of the absence of that ordinary care which in the circumstances, a prudent man would have taken. (e) Liability for money paid or thing delivered by mistake or under coercion: Such liability arises under Section 72 of the Contract Act which is reproduced below: “A person to whom money has been paid, or anything delivered, by mistake or under coercion must repay or return it.” In each of the above cases, contractual liability is the creation of law and does not depend upon any mutual agreement between the parties.

1.48 WAGERING AGREEMENT AND CONTINGENT CONTRACT The points of distinction between the two may be noted as follows : 1. A wagering agreement is a promise to give money or money’s worth upon the determination or ascertainment of an uncertain event. A contingent contract, on the other hand, is a contract to do or not to do something if some event, collateral to such contract does or does not happen. 2. In a wagering agreement the uncertain event is the sole determining factor, while in a contingent contract the event is only collateral. 3. A wagering agreement is essentially of a contingent nature whereas a contingent contract may not be of a wagering nature. 4. A wagering agreement is void whereas a contingent contract is valid. 5. In a wagering agreement, the parties have no other interest in the subject matter of the agreement except the winning or losing of the amount of the wager. In other words, a wagering agreement is a game of chance. This is not so in case of a contingent contract.

1.49 SUMMARY Contingent Contracts are the contracts, which are conditional on some future event happening or not happening and are enforceable when the future event or loss occurs. (Section 31) Rules for enforcement (a) If it is contingent on the happening of a future event, it is enforceable when the event happens. The contract becomes void if the event becomes impossible, or the event does not happen till the expiry of time fixed for happening of the event. (b) If it is contingent on a future event not happening. It can be enforced when happening of that event becomes impossible or it does not happen at the expiry of time fixed for non-happening of the event. (c) If the future event is the act of a living person, any conduct of that person which prevents the event happening within a definite time renders the event impossible. (d) If the future event is impossible at the time of the contract is made, the contract is void ab initio. Quasi Contracts arise where obligations are created without a contract. The obligations which they give rise to are expressly enacted: (a) If necessaries are supplied to a person who is incapable of contracting, the supplier is entitled to claim their price from the property of such a person. (b) A person who is interested in the payment of money which another is bound to pay, and who therefore pays it, is entitled to be reimbursed by the other. (c) A person who enjoys the benefit of a non-gratuitous act is bound to make compensation. (d) A person who finds lost property may retain it subject to the responsibility of a bailee. (e) If money is paid or goods delivered by mistake or under coercion, the recipient must repay or make restoration.

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Quasi Contracts

The quasi contract[1]:.

Section 68 states that Claim for necessaries supplied to person incapable of contracting , or on his account.
Section 69 states that Reimbursement of person paying money due by another , in payment of which he is interested
Section 70 states that Obligation of person enjoying benefits of non-gratuitous act
Section 71 states that Responsibility of finder of goods
Section 72 states that Liabilities of person to whom money is paid , or thing delivered , by mistake or under coercion

Evolution Of Quasi Contract

Elements of quasi contracts.

The plaintiff must show evidence of the goods or services they should have been compensated for.
The defendant must have accepted those goods or services and receive some type of benefit from them.
Finally, the defendant must have accepted said goods or services under unfair circumstances where the plaintiff didn't receive any compensation.
Section 68states that Claim for necessaries supplied to person incapable of contracting , or on his account.[6] 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.
Necessaries are being supplied
Necessaries so supplied must be suited to the condition of life of that person to whom they are supplied
Necessaries are supplied to a person who is incapable of entering into a contract or anyone whom he is legally bound to support
The reimbursement is to be claimed from the property of that incapable person
The first condition to be followed is that plaintiff should be interested in making the payment.
The second essential condition is that it is necessary that the plaintiff himself should not be bound to pay . He should only be interested in making the payment only for the purpose of protecting his own interest . Where a person is jointly liable with others to pay , a payment by him of the others' share would not give him a right of recovery
Thirdly the defendant should have been bound by law to pay money . the word bound by law have been held after some hesitation , to mean bound by law or by contract. It is not necessary that the liability should only be statutory
The fourth and the last condition is that the plaintiff should have made payment and not to himself
The thing must have been done lawfully.
the person doing the act should not have intended to do it gratuitously.
The person for whom the act is done must have enjoyed the benefit of the act

The Recovery Of Quasi Contracts

The absence of a contract that would allow the plaintiff to be justly compensated.
The existence of an unenforceable contract.
The plaintiff's receipt of some type of benefit while breaching an existing contract.

Role Of Quasi Contract And The Court

Difference between contracts and quasi contract.

The Indian Contract Act, 1872
Avtar Singh Law of contracts
William Albert KeenerA Treatise on the Law of Quasi-Contract
legaldictionaryQUASI CONTRACThttps://legaldictionary.net/quasi-contract/
Quasi-ContractsTypes of Quasi Contractfile:///C:/Users/ravee/Downloads/5_QUASI_CONTRACT_.pdf
AIR 1950 Mad 274
lawyersclubindiaQUASI-CONTRACT-A-COMPREHENSIVE-STUDY-OF-SITUATIONS-https://www.lawyersclubindia.com/articles/QUASI-CONTRACT-A-COMPREHENSIVE-STUDY-OF-SITUATIONS--3079.asp
AIR 1953 Pat 145
Quasi-Contracts Types of Quasi Contract file:///C:/Users/ravee/Downloads/5_QUASI_CONTRACT_.pdf
AIR 1968 All 392, 1968 CriLJ 1461
1960 AIR 233, 1960 SCR (2) 75
lawyersclubindia QUASI-CONTRACT-A-COMPREHENSIVE-STUDY-OF-SITUATIONS- https://www.lawyersclubindia.com/articles/QUASI-CONTRACT-A-COMPREHENSIVE-STUDY-OF-SITUATIONS--3079.asp
(1950) 52 BOMLR 17
1959 AIR 135, 1959 SCR Supl. (1)1350
(1913) 15 BOMLR 472
AIR 1954 Bom 427, (1954) 56 BOMLR 264, ILR 1954 Bom 727
upcounselQuasi Contract Elements: Everything You Need to Knowhttps://www.upcounsel.com/quasi-contract-elements
lawyeredContracts And Quasi-Contractshttps://www.lawyered.in/legal-disrupt/articles/contracts-and-quasi-contracts/

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These promises/ relations are Quasi contracts. These obligations can also arise due to different social relationships which we will look at in this article .

The core principles behind a Quasi Contract are justice, equity and good conscience. It is based on the maxim: “No man must grow rich out of another persons’ loss.”

Although there is no contract between Peter and John, the Court treats this as a Quasi-contract and orders John to either return the basket of fruits or pay Peter.

Features of a Quasi Contract

It is usually a right to money and is generally (not always) to a liquated sum of money
The right is not an outcome of an agreement but is imposed by law.
The right is not available against everyone in the world but only against a specific person(s). Hence it resembles a contractual right.

Source: Pixabay

Section 68 – Necessaries Supplied to Persons Incapable of Contracting

However, to establish his claim, Peter needs to prove two things:

John is a lunatic
The goods supplied were necessary for John at the time they were sold/ delivered.

Section 69 – Payment by an Interested Person

If a person pays the money on someone else’s behalf which the other person is bound by law to pay, then he is entitled to reimbursement by the other person.

Section 70 – Obligation of Person enjoying the benefits of a Non-Gratuitous Act

However, the plaintiff must prove that:

The act that is done or thing delivered was lawful
He did not do so gratuitously
The other person enjoyed the benefits

Section 71 – Responsibility of Finder of Goods

If a person finds goods that belong to someone else and takes them into his custody, then he has to adhere to the following responsibilities:

Take care of the goods as a person of regular prudence
No right to appropriate the goods
Restore the goods to the owner (if found)

Section 72 – Money paid by Mistake or Under Coercion

If a person receives money or goods by mistake or under coercion, then he is liable to repay or return it.

Similarly, money paid by coercion which includes oppression, extortion or any such means, is recoverable.

Solved Question on Quasi Contract

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Indian Contract Act 1872: Part II

Who Performs the Contract?
Expressly Void Agreements
Legality of Object and Consideration
Contingent Contracts
Liquidated Damages and Penalty
Performance of Reciprocal Promise
Suit for Damages
Anticipatory and Actual Breach of Contract
Discharge of a Contract

4 responses to “Discharge of a Contract”

a. How can K discharge such a contract?

b. How can A enforce such a contract?

K can discharge the contract by imposibility or frustration due to unseen changes

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Worksheet 11.3: Quasi Contracts and Interpretation
Study with Quizlet and memorize flashcards containing terms like 1. Implied contracts and quasi contracts are the same. a. True b. False, 2. Quasi contracts are actual contracts. a. True b. False, 3. Because courts impose quasi-contract obligations as if the parties had entered into an actual contract, these are ______ rather than legal contracts. and more.
All about quasi-contracts and its types
Know about: quasi-contracts and its types; Consensus ad idem; Principle on which quasi-contracts are based; Elements of a quasi-contract
Quasi-Contract
Guide to Quasi-Contract and its meaning. Here, we discuss the advantages and disadvantages of types, features, and quasi-contract examples.
Quasi Contract Assignment
Quasi Contract Assignment implied contract: applying precedent learning objective: this assignment has two purposes. the first is to learn the law of contract.
fin 240 kaplowitz worksheet 11.3: quasi contracts and ...
Study with Quizlet and memorize flashcards containing terms like Implied contracts and quasi contracts are the same., Quasi contracts are actual contracts., Because courts impose quasi-contract obligations as if the parties had entered into an actual contract, these are _____ rather than legal contracts. and more.
M3A1 BUS230 Internet Assignment Quasi Contract .docx
View M3A1_BUS230_Internet Assignment (Quasi Contract).docx from BUS 230 at Excelsior University. Justin M. Davis 29 September 2019 Module 3, Assignment 1 BUS230 Quasi contract is one person supplies
Quasi Contract: Meaning, Legal Provisions with Examples
Can there be a contact without offer, acceptance, consideration etc? Well, yes there can be such a contract based on social responsibility. We call such contracts quasi contract. Let us take a look.
Quasi Contract.docx
View Quasi Contract.docx from HUMANITIES BLAW001 at Beirut Arab University. Quasi Contract This assignment has two purposes. The first is to demonstrate how Precedent is used to resolve cases.
Quasi Contract under Section 68 to 72 of the Contract Act
Chapter V of the Indian Contract Act, 1872 deals with quasi contract under the heading "Of certain relations resembling those created by contract". Section 68 to 72 provide for five kinds of quasi contractual obligation which are as follows: Section 68: Supply of necessaries. Where necessaries are supplied to a person who in incompetent to ...
Quasi Contract Assignment.pdf
View Quasi Contract Assignment.pdf from MGT 230 at Henry Ford College. IMPLIED CONTRACT: APPLYING PRECEDENT Learning Objective: This Assignment has two purposes. The first is to learn the law
Worksheet 11.2: Types of Contracts & Quasi Contracts ...
Study with Quizlet and memorize flashcards containing terms like 1. Express, 1. Formal, 1. Bilateral and more.
Quasi Contract
Quasi Contract. Definition: Quasi Contract is a retroactive agreement, determined by a judge with an aim of correcting a situation wherein one party obtains something at the cost of another party. It stops one party from getting an unfair advantage from the situation. It takes place when a dispute exists against the payment of goods and services.
Contracts assignment -discharge of contract ( contingent and quasi
Quasi contract deals with rights or liabilities arise from relations resembling those created by contract. It is not a real contract and thus called a non-consensual contract based on an agreement of parties.
5 Circumstances of Quasi Contracts (Indian Contract Act)
Quasi contract is not a full-fledged contract because there is no offer and acceptance by the parties. But there are some circumstances where the contractual obligation arises. These five circumstances of quasi contracts are: Claim for Necessaries Supplied to Person Incapable of Contracting, or on His Account. Interested Person.
fin 240 kaplowitz worksheet 19.3: quasi contract, waiver of ...
Study with Quizlet and memorize flashcards containing terms like Legal obligations arise under the doctrine of quasi contract because the law considers that the party accepting the benefits has made an implied promise to pay for them., A court will use the doctrine of quasi contract in all of the following except:, To recover under quasi contract, the party seeking recovery must show that the ...
Understanding Quasi Contracts: Obligations and Requisites
Quasi contracts are a legal remedy to prevent one party from unfairly benefiting at the expense of another when no formal contract exists. b. There are different sources of obligations, namely, law, contract, quasi contract, delict and quasi delict. Choose two (2) sources and give an example for each. Identify the requisites for each of the ...
Trends in Litigation, Part 3: Oral Contracts and Quasi-Contracts
Trends in Litigation, Part 3: Oral Contracts and Quasi-Contracts. Adrienne Koch's third in her a four-part series that examines how litigation can shape the evolution of best practices in the real ...
Quasi Contracts
A quasi contract, also known as an implied-in-law contract, is a legal agreement created by the courts in order to prevent one party from being unjustly enriched at the expense of the other party.
quasi contract assignment pdf
Search Search Please fill out this field. What Is a Quasi Contract? How It Works; Quasi Contract vs. Contract. Types of quasi contract. Advantages and Disadvantages; Quasi Contrac
10.2: Types of Contracts & Quasi Contracts & Interpretation of
Study with Quizlet and memorize flashcards containing terms like Bilateral, Express, Formal and more.
Mariners Ink Intriguing Foreign Prospect to Contract
There was no information available as of Tuesday of Shen's assignment or his contract details. ... Mariners Ink Intriguing Foreign Prospect to Contract ...
M3A1.docx
M3A1: Internet Assignment A quasi-contract is an obligation imposed by law to prevent unjust enrichment (Cornell Law School, n.d.). The case that I chose from my New York, which is where I live, is Marra v Nazzaro. In this case Johanna is demanding that the defendant, her ex-boyfriend Eric, pay her money that she spent on him during their romantic relationship. Under the theory of quasi ...
Quasi Contract
AN quasi contract is court-created legal agreement between two fetes who have not will a previous obligation to each other.
Worksheet 19.2: Equitable Remedies and Recovery Based on Quasi Contract
To recover under quasi contract, the party seeking recovery must show that they have - a benefit with the - expectation of being paid, not acting as a -, and the other party would be - if no award is granted. Many contracts have provisions that limit remedies for breach to replacement, repair, or refund.

assignment on quasi contract

IMAGES

VIDEO

COMMENTS

What Is a Quasi Contract?

Quasi Contract vs. Contract

The Bottom Line

Quasi Contract

Key Takeaways

Understanding Quasi Contracts

Requirements

Advantages and Disadvantages of Quasi Contracts

Quasi Contract Pros and Cons

What Are Quasi Contracts?

What Is a Quasi Contract in Simple Words?

What Is a Quasi Contract Example?

Consensus ad idem

All about quasi-contracts and its types

What is a contract

Essential elements of a valid contract

Types of contracts

Valid contracts

Void contracts

Voidable contract

Illegal contract

Unenforceable contract

Contingent contract

Quasi-contracts

Elements of a quasi-contract

Principle on which quasi-contracts are based

Types of quasi-contracts

Similarities and differences

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Features of a Quasi Contract

Section 68 – Necessaries Supplied to Persons Incapable of Contracting

Section 69 – Payment by an Interested Person

Section 70 – Obligation of Person enjoying the benefits of a Non-Gratuitous Act

Section 71 – Responsibility of Finder of Goods

Section 72 – Money paid by Mistake or Under Coercion

Solved Question on Quasi Contract

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Indian Contract Act 1872: Part II

4 responses to “Discharge of a Contract”

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Quasi Contract

Examples of Quasi Contract

Salient Features of Quasi Contract

Cases Deemed as Quasi Contract

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5 Circumstances of Quasi Contracts as Per the Indian Contract Act

1. Claim for Necessaries Supplied to Person Incapable of Contracting, or on His Account

2. Interested Person

3. Obligation of Person Enjoying Benefits of Non-Gratuitous Act

4. Responsibility of Finder of Goods

5. Liability of Person to Whom Money Is Paid, or Thing Delivered, by Mistake or Under Coercion

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quasi contract assignment pdf

What Is a Quasi Contract?

Quasi Contract vs. Contract

The Bottom Line