Business law is a crucial component of law in general since, without it, the corporate, manufacturing, and retail sectors would all be under a dictator’s rule. Combining business and law seeks to create secure and efficient working environments for everyone associated with the business.
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CHAPTER IV
QUASI CONTRACT, DISCHARGE OF CONTRACT AND REMEDIES FOR BREACH
OF CONTRACT
QUASI CONTRACT:
The term 'quasi is a Latin word which means 'as if or similarly Quasi contract is not a real
contract entered into by parties intentionally. It resembles a contract in which law imposes
an obligation on a person to perform an obligation on the ground of equity
The term quasi contract may be defined as "a relation which resembles that which is created
by a contract Moreover, there is no intention of the parties to enter into contract,
Basics of quasi contract:
Quasi contract is based on the maxim "nemo debet locuplatari ex liena justua" which means
no man must grow rich out of another person's cost. These are based on the principle that a
person shall not be allowed to enrich himself at the expense of another.
Circumstances or kinds of quasi contract:
Section 68 to 72 of Indian Contract Act mentions the circumstances in which the quasi
contractual obligations arise. They are as follows.
1. Supply of necessaries to persons who are incompetent to contract (Sec 68)
Il Payment by an interested person (Sec 69)
III Non-gratuitous Acts (Sec 70)
IV. Finder of lost goods (Sec 71)
V. Payment of money or delivery of goods by mistake or under coercion(Sec 72)
1. Supply of necessaries to persons who are incompetent to contract (Sec 68):
Sometimes, a person supplies necessaries to a person who is not competent to
contract (i.e. a minor, person of unsound mind such as lunatics etc). In such cases, the
person supplying the necessaries is entitled to recover the cost of necessaries from
the property of such incompetent person. The term 'necessaries" means the necessary
items suitable to one's condition in life. A person who supplies the necessaries to an
incompetent person is entitled to be reimbursed from the property of such
incompetent person even if there is no contract between them. Eg A supplied to B. a
lunatic the necessaries suitable to his condition in life. In this case, A is entitled to be
reimbursed from B's property.
BUSINESS LAW CHAP TER -IV
ANJALI VIJAY
, P a g e |2
Eg A supplies the wife and children of B. a lunatic, with necessaries suitable their conditions
in life. A is entitled to be reimbursed from B's property
2. Payment by an interested person (Sec 67): Sometimes, a person makes the payment
which is the legal duty of another person. In such cases, the person who made the
payment can recover such money from the person who is legally bound to pay. Such
type of cases arise when a person does not pay the legal charges due on his property
and the payment is made by some interested person to protect the property from
going to the hands of the third party. Eg. A agreed to purchase certain mill from B.
certain amount of municipal tax were due on it. In order to save the mill from being
sold. A paid the municipal tax due It was held that A was entitled to recover the
amount of municipal tax from B.
Conditions for recovery of the payment made by an interested person:
i. The person making the payment must be interested in paying the amount:The
first requirement for the application of this provision is that the person making the
payment must have some interest in paying the amount. The interest such person
seeks to protect must be legally recognized
ii. The person making the payment must not be legally bound to pay the amount:
The person making the payment should be interested in making the payment in
order to protect his own interest. If he himself is bound to make the payment, he
cannot recover the same from another person.
iii. The other person must be legally bound to make the payment: The person from
whom the money is sought to be recovered must be legally bound to pay the
money.
iv. The payment must not be made to self: The person making the payment must pay
it to some other person and not to himself. Such cases may arise when the
government makes payment from one department to some other department.
3. Non-gratuitous Acts (Sec 70): The term non-gratuitous acts may be defined asthe acts
which are not done free. In other words, the acts done with the intention of being paid
are non-gratuitous acts. Sometimes, a person does some acts or delivers something
to another person with the intention of receiving payments for the same. In such
cases, the other person is bound to make the payments if he accepts such services or
goods.
Conditions for the recovery of compensation for non-gratuitous acts:
i. The person must lawfully do something to another person or deliver something
to him: The first requirement for the application of this condition is that the person
must lawfully do something to another person or deliver something to him. There
must be lawful relationship between the person claiming the compensation and
the person against whom it is claimed .
BUSINESS LAW CHAP TER -IV
ANJALI VIJAY
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