Quasi-Contract

Quasi means almost or apparently but not really or as if it were. Quasi contract is not a contract at all
because one or the other essentials for the formation of a contract are absent. It is an obligation imposed by
law upon a person for the benefit of another even in the absence of a contract. The relationship of the
parties by which one party is bound to pay money in consideration of an act done or suffered by the other
party even in the absence of contract is quasi contract. It is based on latin maxim, ‘nemo debet locuplatari
ex liena justua’, which means no man must grow rich out of another person’s cost; which means no person
shall be allowed to unjustly enrich himself at the expense of another.

Features of Quasi contract

 It is imposed by law and does not arise from any agreement
 The duty of a party and not the promise of any party is the basis of such contract
 The right under it is always a right to money
 The right under it is available against specific person
 A suit for its breach may be filed in the same way as in case of a complete contract

Kinds of Quasi Contract/ Rules regarding Quasi contract

a) Right to recover the price of necessaries supplied

The person who has supplied the necessaries to a person who is incapable of contracting or anyone whom
such incapable person is legally bound to support, is entitled to claim their price from the property of such
in capable person. Example; necessaries supplied to minors, lunatic etc
Following points should be satisfied:
i) The supplies are or real necessities
ii) The necessities are supplied at the time when actually needed
iii) The price is reasonable
iv) Supplies are not of gratuitous nature
v) Necessities supplied are payable only when the incapable person has property for them

b) Right to recover money paid for another person

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. E.g., B holds land in Bengal on a lease granted
by A. A’s land is advertised for sale due to non payment of revenues. B to prevent the sale and cancellation
of lease pays government sum due from A. A is liable to B for the sum paid.
Condition:
i) Person making the payment must necessarily be concerned with the payment of amount
 ii) Payment must not be of voluntary nature
iii) Payment of money must be one which another was legally bound to pay

c) Right to recover for non gratuitous act

Non gratuitous means ‘not done free’. The act which are done with the intention of being paid are called
non gratuitous act.

Right to recover arises if the following three conditions are satisfied:

i) the thing must have been done or delivered lawfully;
ii) the person who has done or delivered the thing, must not have intended to do so gratuitously;
and
iii) the person for whom the act is done must have enjoyed the benefit of the act
Example: A, a tradesman, leaves goods at B’s house by mistake. B treats the goods as his own. He is bound
to pay A for them.

d) 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. Example: X guest found a diamond ring at a party of Y. X told Y and other guests
about it. He has performed his duty to find the owner. If he is not able to find the owner he can retain the
ring as bailee.
A found a diamond on the floor of B’s shop and handed it over to B to keep it till the true owner is found.
Best efforts were made to trace the true owner and advertisement was given in newspaper. True owner
couldnot be traced. After sometime A tendered to B the expenses incurred by him for tracing true owner
and requested him to return the diamond. B refused to return the diamond to A. it was held that b must
return the diamond to A as he alone was entitled to retain it against everyone except true owner. ( Hollins v
Fowler 1957 )
e) Right to recover from a person to whom money is paid or thing is 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. Example: A and B jointly owe Rs 100 to C. A alone pays the amount C, and B, not knowing this
fact, pays Rs 100 over again to C. C is bound to repay the amount to B.