Tuesday, 20 September 2016

Quasi Contracts

QUASI CONTRACTS
Quasi contract is a transaction in which there is no contract between the parties , the law creates certain rights and obligations between them which are similar to those created by a contract. For eg. A gas company sends a gas cylinder to A but by mistake it is delivered to B who takes it and uses it. In this case the company reserves the right to receive the payment for the cylinder from B .These relationships are known as quasi or constructive contracts.
Features of Quasi contract:
1.  Such contracts are not made by the desire of the parties but are created by law.
2.  The duty of a party and not a promise of any party is the basis of such contract.
3.  The right under it is available against specific person and not against the world.

TYPES OF QUASI CONTRACTS
1.)      Supply of necessities to persons incompetent to contract(sec 68): If a person is incapable of entering into an contract, or anyone whom he is legally bound to support is supplied by other person with necessities then such person is entitled to get the amt of such necessities from the property of such person. For eg. Ajay is a minor. He buys rice for food from vijay. Vijay can receive the cost of rice from Ajay’s property.
In this connection, the following conditions need to be met:
a)        The goods provided to the incapable person must only be the necessaries of life.
b)       Such necessaries must only be provided to the incapable person or those who are dependent upon him.
c)        Such necessaries must not be a gift or a charity.
d)       It is only the property of the incapable person which is liable for meeting the liability.
e)        Only a reasonable price for these necessities can be realised from the property.
2) Right to recover money paid for another person(sec 69): A person who is interested in payment of money which another is bound by law to pay or who therefore pays it, is entitled to be reimbursed by the other. In the case, Hazari lal vs. Narang Lal, where H is the lease holder of land that belongs to N who had not paid any land revenue for many years. The state had served a notice to N that unless the arrears of the revenue were paid by a certain date ,the land would be auctioned to realise the arrears. Acc to the law, H lease would be terminated with the sale of land. H therefore paid the revenue arears and later claimed the same from N .
3) Voluntary but non-gratuitous acts(sec 70): when a person lawfully does anything for another person or delivers anything to him, not intending to do so gratuitously  and such person enjoys the benefit thereof, then the later is bound to make compensation to former. For eg. A by mistake delivers some goods to C instead of B and C uses it then he is bound to pay for the goods to A.
4) Responsibility of finder of goods (sec 71): A person who finds goods belonging to another and takes them into his custody and spends some amt on them as a maintenance then that person has a right to reimbursed the money from the owner of the goods. And if the owner refuses to reimburse the expenses that was incurred by the finder then finder has full right to keep the goods with him and not to return to the owner of such goods . In that case the finder cannot sue against the owner of the goods but considered those goods as his own.
5) Payment of money or delivery of goods by mistake or under coercion(sec 72): A person to whom money has been paid or anything delivered by mistake or under coercion, must repay or return it to a person who paid it by mistake or under coercion. For eg. A and B jointly owe Rs 10000 to C. A alone pays the amt to C without the knowledge of B. Later B also pays Rs 10000 to C to clear the loan. Here, C is lawfully bound to return the amt paid by B.