Under the Indian Contract Act, 1872, certain legal obligations exist even without a formal agreement. These obligations are called quasi contracts. They are not real contracts formed by mutual consent but are treated as valid contracts by law. The purpose is to prevent unjust enrichment, when one person unfairly benefits at another’s expense.
Quasi contracts create a duty for a person to repay or compensate another, even in the absence of a traditional contract.
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What Is A Quasi Contract
A quasi contract arises when a person supplies necessaries to someone who cannot enter into a contract, like a minor or a person of unsound mind. The law says the supplier is entitled to be reimbursed from the incapable person’s property.
Example: A provides essential items to B, a lunatic. Since B cannot contract, A can recover the cost from B’s property.
Does It Include Payment by an Interested Person
If a person, to protect their own interest, pays money that another is legally bound to pay, the law treats it as a quasi contract. The person who made the payment can claim reimbursement.
Example: B pays overdue revenue on A’s land to protect his lease. A must repay B the full amount.
Obligation to Pay for Non-Gratuitous Acts
When a person lawfully does something or delivers goods without intending it as a gift, and the other person accepts or uses the benefit, a quasi contract is created. The receiver must compensate the provider.
Example: A mistakenly delivers goods to B’s house. B uses them. B must pay A for those goods.
Responsibility of Finder of Goods
If someone finds goods belonging to another and takes custody, they must take care of them like a bailee under a quasi contract. They have a legal duty to protect and return the goods.
Return of Money or Goods Paid by Mistake or Coercion
If someone receives money or property by mistake or through coercion, the law imposes a quasi-contractual obligation to return it. Keeping such money is illegal.
Example: A and B jointly owe money to C. A pays it. B, unaware, also pays. C must return B’s extra payment.
Conclusion
Quasi contracts fill the gap where no formal agreement exists but fairness demands compensation. The Indian Contract Act, 1872, enforces such obligations to prevent unjust enrichment. Whether it’s supplying necessaries, making payments, or returning mistaken transfers, quasi contracts ensure justice and equity in daily life.
