Understanding Quasi-Contracts: Supply of Necessaries, Payments, Non-Gratuitous Acts & More 

 

Section for reference : 68, 69,70,71,72 of Indian Contract Act 

SUPPLY OF NECESSARIES TO PERSONS INCOMPETENT                                                                               (Sec. 68)

TO CONTRACT

Who is made liable under Sec. 68?A person who is incompetent to contract (such as a minor or a person of unsound mind).

 

Condition of Sec. 68

     The liability arises when necessaries are supplied to:

  • The incompetent person himself, or
  • Any person whom the incompetent person is legally bound to support (e.g., dependents)

 Liability of Incompetent Person

The supplier is entitled to be reimbursed from the property of the incompetent person.

However, the incompetent person is not personally liable.

 Meaning of Necessities

Necessities means necessaries suitable to the conditions in life of the person to whom such necessities are supplied.

 

PAYMENT BY A PERSON WHO IS INTERESTED IN A TRANSACTION                                                        (Sec.69)

 

Conditions of Sec. 69

  • One person is legally bound to make a payment.
  • Another person, who is interested in the payment, makes it.
  • The person making such payment is not himself legally bound to pay.

Legal effect of Sec. 69If all the conditions of Sec. are satisfied, the person who interest paying such amount shall be entitled to recover the payment made by him

 

OBLIGATION OF PERSON ENJOYING BENEFIT OF NON-GRATUITOUS ACT                                              (Sec. 70)

Conditions of Sec. 70

  • A person lawfully does something for another person, or delivers something to another person.
  • The act must be voluntary and non-gratuitous.
  • The other person enjoys the benefit of the act or the thing delivered.

Legal effect of sec 70

if the condition of sec 70 are satisfied there will be quasi contract with the parties
consequently the party who has done something or delivered a thing shall be entitled by recover the value from the person obtained the benefit of the same

 

Finder of Good                                                                                                                                                                 (Sec 71)

A finder of Goods has same rights and duties as that of a bailee

MONEY PAID UNDER THE  A MISTAKE OR CORRECTION

Conditions of Sec. 72

  • A person has paid a money to another person or
  • Delivered something to another person
  • such person must have acted under a mistake or under correction
Legal effect of sec 72

If the above conditions are satisfied, a quasi-contract will arise between the parties. Consequently, the party who has paid money or delivered a thing is entitled to recover it from the person who has obtained the benefit

 

 

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