Quasi Contract | Meaning, Definition, and Circumstances with Examples?

QUASI CONTRACT 

Meaning and Definition 

Quasi contract is not a contract. It arises under special circumstances. It is an obligation imposed by law upon a person for the benefit of another. It is based on the principle of equity and justice. Sometimes, the law requires that a person must perform some obligation. Such obligations is called quasi contract or Constructive Contract. 

Kinds/Circumstances of Quasi Contract

The following are different circumstances in which a quasi contract arises: 

1. Liability for Necessaries 

If a person supplies necessaries to a person who is incompetent to contract or to any person whom he is bound to support, the supplier can recover reasonable price of such necessaries from the property of such person. If such person owns no property, the supplier cannot recover the price of such necessaries. [Sec. 68] 

Example 

C supplies necessaries to B, a minor. C can recover the price from B's property 

2. Payment by interested person 

A person who is interested in payment of money which another is bound by law to pay, and who therefore pays it, is entitled to be reimbursed by the other. [Sec. 69] 

It means a person who is interested in payment which another person is bound to pay, makes the payment on his behalf, can recover from that person. 

Example

A pays arrears of rent of B to avoid dispute between B and his landlord. A cannot recover from B as he has no interest in payment. 

3. Compensation for Non Gratuitous Act 

Where a person lawfully does anything for another person or delivers anything to him, not intending to do so gratuitously, and such other person enjoys the benefits thereof, the latter is bound to make compensation to the former in respect of, or to restore, the thing so done or delivered. [Sec. 70] 

A non gratuitous act means an act which is performed by one person to get compensation from another person. The person who performs such act for the benefit of another person can recover the compensation for such acts. 

Examples 

A voluntarily saves B's property from fire. A cannot claim compensation from B. 

4. 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. [Sec. 71] 

It means the finder must try to find out the owner and return the goods to him. He must take care of those goods

Example 

X, a guest, found a diamond ring at the birth party of Y. X told Y and other guest about it. X could not find the owner. X can retain the ring. 

5. Mistake or Coercion

A person to whom money is paid or anything delivered by mistake or under coercion, must repay to return it. [Sec. 72] 

It means if a person by mistake or under coercion pays money or delivers goods to another person, the person making the payment or delivering the goods can recover.

Example 

A paid some money to B by mistake. A can recover his money from B.