Introduction:- There are many situations in which law, as well as justice, require that a person be required to conform to an obligation, although he has neither broken any contract nor committed any tort. Chapter V of the Indian Contract Act deals with the situations under the heading “Of certain relations resembling those created by Contract”. The chapter avoids the word “Quasi-contract” and given the clear statutory authorization, the courts in India are not hindered in allowing relief under the different sections of the Act by the theoretical considerations concerning quasi-contracts.

Conditions of quasi- contract:-

(1) A legal agreement created by the courts between two parties who did not a previous obligation to each other.

(2) A normal contract requires two parties to consent to mutually agreeable terms under a quasi-contract neither party is originally intended to create an agreement. Instead, an agreement is imposed by a judge to rectify an occurrence of unjust enrichment.

(3) Courts create quasi-contracts to protect the unjust enrichment of the parties in dispute over payments of goods and services.

Salient Features of quasi-contractual rights:-

(a) Firstly, it does not arise from any agreement of the parties concerned but is imposed by the law, and

(b) Secondly, it is a right that is available not against the entire world but a particular person or persons only.

Kinds of quasi-contractual Obligations:- Section 68 to 72 provide for 5 kinds of quasi-contractual obligations are as follows:

(1) Supply of necessaries

S.68. Claim for necessaries supplied to a person incapable of contracting, or on his account.

Persons incapable of contracting includes:

• a minor

• person of unsound mind

• person disqualified by law to which they are subjected

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

(2) Payment by interested person

S.69. Reimbursement of person paying money due to another, in payment of which he is interested.

Essential requirements of section 69:

• payer must be interested in making payment

• but should not be bound to pay

• defendant should be under legal compulsion to pay

• payment should be by one to another

(3) Liability to pay for non-gratuitous acts

S.70. Obligation of person enjoying the benefit of non-gratuitous act.


• a person should lawfully do something for another person or deliver something to him;

• in doing the said thing or delivered the said thing he must not intend to act gratuitously;

• the other person for whom something is done or to whom something is delivered must enjoy the benefit thereof.

(4) Finder of goods

S.71. Responsibility of finder of goods.

Entitled to retain the goods until he receives the lawful charges or consequences 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 was found.

(5) Mistake or coercion

S.72. Liability of 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 100 rupees to C. A alone pays the amount to C, and B, not knowing this fact, pats 100 rupees over again to C. C is bound to repay the amount to B.

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