We know that a contract is the result of an agreement enforceable by law. But in some cases there is no offer, no acceptance, no consensus ad idem and in fact no intention on the part of parties to enter into a contract and still the law, from the conduct and relationship of the parties, implies a promise imposing obligation on the one party and conferring a right in favour of the other.
In other words under certain special circumstances obligations resembling those created by a contract are imposed by law although the parties have never entered into a contract. Such obligations imposed by law are referred to as ‘Quasi-Contracts’ or ‘Constructive Con-tracts’ under the English law, and “certain relations resembling those created by contracts” under the Indian law. The term’ quasi-contract’ has been used because such a contract resembles with a contract so far as result or effect is concerned but it has little or no affinity with a contract in respect of mode of creation.
A quasi-contract rests upon the equitable “doctrine of unjust enrichment” which declares that a person shall not be allowed to enrich himself unjustly at the expense of another. Duty, and not a promise or agreement, is the basis of such contracts. It may be noted that a suit for damages for the breach of the contract can be filed in the case of a quasi-contract in the same way as in the case of a completed contract (Sec. 73).
The Contract Act deals with ‘quasi-contractual obligations’ under Sections 68 to 72, which are discussed below:
I. Claim for necessaries supplied to a person incapable of contracting or on his account (Sec. 68). “If a person, incapable of entering into a contract, or anyone 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.”
This provision has already been considered in connection with minor’s agreements in “Capacity of Parties.” With a view to recapitulate it may be stated here that although agreements by minors, idiots, lunatics, etc., are void ab-initio, but Section 68 makes an exception to this rule by providing that their estates are liable to reimburse the supplier who supplies them or to some one whom they are legally bound to support with ‘necessaries’ of life. The following points need to be emphasized:
(i) The Section does not create any personal liability but only the estates are liable.
(ii) The things supplied must come within the category of ‘necessaries’. The word ‘necessaries’ here covers not only bare necessities of existence, e.g.. food and clothes, but all things which are reasonably necessary to the incompetent person, having regard to his status in society, e.g., a watch, a radio, a bicycle may be included therein.
(iii) Necessaries should be supplied only to such incompetent person or to some one
whom he is legally bound to support such as his wife and children.
(iv) Incompetent person’s property is liable to pay only
reasonable price for the goods or services supplied and not the price which the incompetent person might have agreed to pay(legally speaking an incompetent person cannot agree to anything).
In other words under certain special circumstances obligations resembling those created by a contract are imposed by law although the parties have never entered into a contract. Such obligations imposed by law are referred to as ‘Quasi-Contracts’ or ‘Constructive Con-tracts’ under the English law, and “certain relations resembling those created by contracts” under the Indian law. The term’ quasi-contract’ has been used because such a contract resembles with a contract so far as result or effect is concerned but it has little or no affinity with a contract in respect of mode of creation.
A quasi-contract rests upon the equitable “doctrine of unjust enrichment” which declares that a person shall not be allowed to enrich himself unjustly at the expense of another. Duty, and not a promise or agreement, is the basis of such contracts. It may be noted that a suit for damages for the breach of the contract can be filed in the case of a quasi-contract in the same way as in the case of a completed contract (Sec. 73).
The Contract Act deals with ‘quasi-contractual obligations’ under Sections 68 to 72, which are discussed below:
I. Claim for necessaries supplied to a person incapable of contracting or on his account (Sec. 68). “If a person, incapable of entering into a contract, or anyone 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.”
This provision has already been considered in connection with minor’s agreements in “Capacity of Parties.” With a view to recapitulate it may be stated here that although agreements by minors, idiots, lunatics, etc., are void ab-initio, but Section 68 makes an exception to this rule by providing that their estates are liable to reimburse the supplier who supplies them or to some one whom they are legally bound to support with ‘necessaries’ of life. The following points need to be emphasized:
(i) The Section does not create any personal liability but only the estates are liable.
(ii) The things supplied must come within the category of ‘necessaries’. The word ‘necessaries’ here covers not only bare necessities of existence, e.g.. food and clothes, but all things which are reasonably necessary to the incompetent person, having regard to his status in society, e.g., a watch, a radio, a bicycle may be included therein.
(iii) Necessaries should be supplied only to such incompetent person or to some one
whom he is legally bound to support such as his wife and children.
(iv) Incompetent person’s property is liable to pay only
reasonable price for the goods or services supplied and not the price which the incompetent person might have agreed to pay(legally speaking an incompetent person cannot agree to anything).
Essence of Quasi Contracts
![Essence of Quasi Contracts]()
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