QUASI CONTRACTS OR CONSTRUCTIVE CONTRACTS- MEANING, FEATURES, DIFFERENCE,TYPES OF QUASI CONTRACTS

 INTRODUCTION

·        Quasi means ‘almost’ or ‘apparently but not really’ or ‘as if it was’. Obligation between parties is not contractual but one which is treated as contractual by law.

·        Courts create quasi contracts to protect the unjust enrichment of the parties in dispute over payment of goods or service the word ‘Quasi’ means pseudo.

·        Hence, a quasi contract is a pseudo-contract.

·         When we talk about a valid contact we expect it to have certain elements like offer and acceptance, consideration, the capacity to contract, and free will. But there are other types of contracts as well.

·        There are cases where the law implies a promise and imposes obligations on one party while conferring rights to the other even when the basic elements of a contract are not present.

·        These promises are not legal contracts, but the Court recognizes them as relations resembling a contract and enforces them like a contract.

FEATURES OF A QUASI CONTRACT

·        It is usually a right to money and is generally (not always) to a liquated sum of money  

·        The right is not an outcome of an agreement but is imposed by law.  

·        The right is not available against everyone in the world but only against a specific person(s). Hence it resembles a contractual right.

DIFFERENCE BETWEEN QUASI AND SIMPLE CONTRACT

TYPES OF QUASI CONTRACTS: PERSON

1. Supply of necessities (Sec.68)

2. Payment by an interested (Sec.69)

3. Obligation to pay for non gratuitous act (Sec.70)

4. Responsibility of finder of goods (Sec.71)

5. Mistake or Coercion (Sec.72)

SECTION 68 “CLAIM FOR SUPPLY OF NECESSARIES TO PERSON INCAPABLE OF CONTRACTING” NECESSARIES:

·        Things suited to the conditions of incompetent parties Includes articles required to maintain a particular person in the state and degree in the life in which he is.

·         Such necessaries must not be a gift or a charity. Such necessaries must only be provided to the incapable person or those who are dependent upon him

Example: A supplies B, lunatic with necessaries suitable to his condition of life. Is entitled to be reimbursed from B’s property

SECTION 69 “REIMBURSEMENT OF MONEY PAID, IN WHICH HE IS INTERESTED”

·        There must be a person who is bound to make a payment by law. The person paying must himself not be bound to pay.

·        When he is jointly liable to pay, payment by him would not give him the right to recover under this section There must be another person interested, not bound by law, in such payment being made and interest should exist at the time of payment. The payment must be made bonafide for the protection of one’s own.

 Example: A and B has been fined jointly Rs500 for selling adulterated ghee. An alone pays the amount of fine in good faith; A cannot later claim contribution from B under Section 69. Notice that although B was bound by law to pay and A has paid B’s share in good faith, yet A cannot recover as he himself was bound to make the payment, being jointly liable with B and was not simply interested in making the payment.

SECTION 70 “OBLIGATION OF A PERSON ENJOYING BENEFITS OF NON-GRATUITOUS ACT”

·        Person lawfully does anything for another person.

·        Delivers anything to him non-gratuitously.

·        Latter is bound to make compensation or restore the thing so done or delivered.

·        The thing must be done lawfully.

·        The person for whom the act is done must enjoy the benefit of it.

Example: A, a tradesman, leaves goods at B’s house by mistake. B treats the goods his own. He is bound to pay for them A saves B’s property from fire. A is not entitled to compensation from B, if the circumstances show that he intended to act gratuitously

SECTION 71: “RESPONSIBILITY OF FINDER OF GOODS”

·        His rights: •Entitled to retain the goods until he receives the lawful charges or compensation 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 is found:

·        Can sell the goods when:

·        Commodity is perishable

·        Owner cannot be found

·        Owner refuses to pay compensation

·        Compensation amounts to 2/3rd of the value of the commodity

SECTION 72: “LIABILITIES OF A 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.

Examples:

·        A and B jointly owe Rs.100 to C. A alone pays the amount. B not knowing it also pays to C. C is bound to repay the amount to B.

·        •A railway co. refuses to deliver certain goods to the consignee, except upon the payment of illegal charge for carriage. The consignee pays the sum charged in order to obtain the goods. He is entitled to receive the excessive amount as paid by him.