SPECIAL CONTRACTS

QUASI CONTRACTS
 quasi-contract is a fictional contract created by courts for equitable, not contractual, purposes. A
quasi-contract is not an actual contract, but is a legal substitute formed to impose equity between
two parties. The concept of a quasi-contract is that of a contract that should have been formed,
even though in actuality it was not. It is used when a court finds it appropriate to create an
obligation upon a non-contracting party to avoid injustice and to ensure fairness. It is invoked in
circumstances of and is connected with the concept of restitution.
Generally the existence of an actual or implied-in-fact contract is required for the defendant to be
liable for services rendered, and a person who provides a service uninvited is an officious
intermeddler who is not entitled to compensation. "Would-be plaintiffs cannot deliver unordered
goods or services and demand payment for the benefit....A corollary is that one who does have an
enforceable contract is bound by the contract's terms: subject to a few controversial exceptions,
she cannot sue for restitution of the value of benefits conferred..."  However, in many
jurisdictions under certain circumstances plaintiffs may be entitled to restitution under quasi-
contract . They are used as remedies for unjust enrichment, management of another's affairs, or
payment of a thing not due .
Quasi-contracts are defined to be "the lawful and purely voluntary acts of a man, from which
there results any obligation whatever to a third person, and sometime a reciprocal obligation
between the parties. Quasi-contracts are stipulated in the 3rd Book, Title IV, Chapter 1 of the
French Civil Code (articles 1371-1381). One authority defines a quasi-contract as "A licit and
voluntary act from which derives obligations subject to a regime close to the contractual one
imposing on the author of the act and a third party, not-bound by a contract".

The Salient features of Quasi Contractual right ,are as follows: :

The Salient features of Quasi Contractual right ,are as follows : Firstly, it does not arise form any
agreement of the parties concerned, but is imposed by the law; and Secondly, it is a right which
is available not against the entire world, but against a particular person or persons only.

Difference between contract and quasi contract:

Difference between contract and quasi contract Contract Results from the will of the parties
expressed with a view to create an obligation Is an agreement Has certain essential elements Is a
full fledged contract and is binding Quasi contract Is an obligation resembling that created by a
contract There is no agreement at all Essentials for formation of a contract are absent Resembles
a contract. not a full fledged contract. is an implied contract

Types of Quasi contracts: : 

Types of Quasi contracts: Supply of necessities (Sec.68) Payment by an interested person
(Sec.69) Obligation to pay for non gratuitous act (Sec.70) Responsibility of finder of goods
(Sec.71) Mistake or Coercion (Sec.72)

Section 68 “claim for supply of necessaries to person incapable of contracting” : 

Section 68 “claim for supply of necessaries to person incapable of contracting” Person incapable
of contracting includes: A minor Person of unsound mind Person disqualified by law to which
they are subject

 
Necessaries includes: Things suited to the conditions of incompetent parties Articles without
which a person cannot reasonably exist Articles required to maintain a particular person in the
state and degree in which he is Illustration: A supplies B, a lunatic, with necessaries suitable to
his condition in life. A is entitled to be reimbursed from B’s property. A minor studying at
Cambridge was supplied with clothing, including eleven waist- wats. He already had sufficient
clothing with him. It was held that the waist-wats were not necessary articles and so he was not
required to pay for them.

Section 69 “ Reimbursement of money paid, in which he is interested” : 

Section 69 “ Reimbursement of money paid, in which he is interested” Essentials: There must be
a person who is bound by law to make a certain payment. The person paying must himself not be
bound to pay. Where he is jointly liable to pay, he cannot recover the paid amount under this
section. There must be another person who must be interested in such payment being made.
Interest must exist at the time of payment The payment must be made bonafide for the protection
of one’s own interest. Case: Secretary of state v. G.T. Sarin & Co.

Section 70“Obligation of person to pay for enjoying benefit of non-gratuitous act” : 

Section 70“Obligation of person to pay for enjoying benefit of non-gratuitous act” Essentials: act
must be lawful person must have actually supplied goods and services Services should have been
received without any request act must have been done non-gratuitously person for whom the act
has been done should have enjoyed it

Illustration: A, a tradesman, leaves his goods at B’s place by mistake and B treats the goods as
his own. He is bound to pay A for them. A saves B’s property from fire. A is entitled to receive
compensation from B if it is proved that he did not intend to act gratuitously. Case: Damodara
mudaliar v. Secretary of state for India
Section 71:“ responsibility of finder of goods” : 
Section 71:“ responsibility of finder of goods” His rights: Entitled to retain the goods until he
receives the lawful charges or compensation for retaining the goods and taking care of them.
However, he cannot sue for such compensation unless a specified reward has been advertised by
the owner. Entitled to possess the goods until the true owner is found Can sell the goods when:
Commodity is perishable Owner cannot be found Owner refuses to pay compensation
Compensation amounts to 2/3rd of the value of the commodity

His liabilities: Responsible to take care of the goods as if they were his own Must with
reasonable diligence trace the true owner Case: Hollins v. Fowler

Section 72:“Liabilities of a person to whom money is paid or thing delivered by mistake or

under coercion” : 
Section 72:“Liabilities of a person to whom money is paid or thing delivered by mistake or under
coercion” A person to whom money has been paid, or anything delivered by mistake or under
coercion, must repay or return it. Illustration: A and B jointly owe Rs.100 to C. A alone pays the
amount. B not knowing it also pays to C. C is bound to repay the amount to B. A railway co.
refuses to deliver certain goods to the consignee, except upon the payment of illegal charge for
carriage. The consignee pays the sum charged in order to obtain the goods. He is entitled to
receive athe excessive amount as paid by him.