Q) Discuss the contribution of the Supreme Court of India on `Quasi

Contracts'. Is the Indian Contract Act 1872, on the subject exhaustive ?

Discuss.
Ans. Quasi Contract : Sections 68 to 72 deal with what is called in English
Law as quasi contract. Quasi contracts are exceptional kind of contracts by
which one party is bound to pay money in consideration of something done or
suffered by the other party. They are not founded on actual promises, but one
person has done something or paid money for another and the court comes
forward on the ground of equity saying that the person receiving benefit must
make compensation to the other. In other words, they are certain types of
transactions in which, in fact, there being no contract between the parties the
law, by special rule creates rights and obligations between them which are
analogous to those created by a contract. Quasi contracts are not contracts
because the obligation does not arise from volition of the parties. There is no
agreement at all. In the case of quasi contacts certain obligations are imposed by
law on the parties concerned. They do not result from:
(i) Any express agreement.
(ii) Any agreement which can as a matter of fact, be implied.
This type of relation is commonly known as quasicontract.
The quasi contracts are the following:
(i) a minor's or lunatic's liability to pay for necessaries supplied to him (Section
68);
(ii) Payment of money due to another (Section 69);
(iii) Doing a non-gratuitous act for another (Section 70);
(iv) The case of a finder of goods (Section 71), and
(v) Case of money paid by mistake or coercion (Section 72).
Now we will deal with each head alongwith its relative Section of the Indian
Contract Act.
Section 68. Claim for necessaries supplied to a person incapable of
contracting or on his account: If a person, incapable of entering into a
contract, or any one whom he is legally bound to support, is supplied by another
person 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.
Section 69. Reimbursement of person paying money due by another, in
payment of which he is interested: A person who is interested in the payment
of money which another is bound by law to pay, and who therefore pays it is
entitled to be reimbursed by the other.
Obligation of person enjoying benefit of non-gratuitous act. Section 70 of
the Indian Contract Act, provides that 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.
The following three conditions must be established before a right of action
under this Section can arise:
(1) the goods are to be delivered lawfully or anything has to be done for another
person lawfully;
(2) the thing done or the goods delivered is so done or delivered not intending to
act gratuitously; and
(3) the person for whom the act is done or to whom the goods are delivered
must enjoy the benefit thereof. (Union of India v. Sita Ram Jaiswal, AIR 1977
SC 329).
So what Section 70 prevents is "unjust enrichment" and it applies as much to
individuals as to corporations and Government. (Panna Lal v. Deputy
Commissioner, Bhandara, AIR 1973 SC 1174). But in all such cases not only
the two conditions but also the third condition must be fulfilled that the other
party has accepted the thing delivered and has enjoyed the benefit thereof.
(State of West Bengal v. M/s B.K. Mandal and Sons, AIR 1962 SC 779).
Section 71 says about Responsibility of finder of goods "A person who finds
goods belonging to another, and takes them into his custody, is subject to the
same responsibility as a bailee."
Section 72 provides about 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."