Study Notes on Contract

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Here we are providing you updated and most relevant Study notes on Contract of Quasi Contracts for Law Entrance Exam. These study notes are highly recommendable for all those who aspire to crack  CLAT, DULLB, AILET and other Law Entrance Exam.

Quasi Contracts:

1)     The term “Quasi” means similarity or “bears resemblance to”.
2)     Quasi Contract is similar to contracts, in respect of the contractual obligation. However, it is different from a contract, in the respect that there is no formal agreement entered into by the parties.
Contract = Agreement + Legal Obligation Quasi Contract = Legal Obligation
3)     In case of quasi-contracts, there is no offer, no acceptance, no consensus-ad-idem and absolutely no intention on the part of the parties to strike a contract. Still, the law, from the conduct and relationship of the parties, imposes an obligation on one party and confers rights on the other party. This obligation is called quasi-contractual obligation.
4)     Thus, quasi-contract is based on the doctrine of unjust enrichment, which declares that a person should not be allowed to enrich himself unjustly at the expense of another.

Quasi-Contractual Obligations:
1) Claim for necessaries supplied to a person incapable of contracting or on his account.
Anand supplies necessities to Yamini, a mentally unsound person, which are suitable to her condition. Anand is entitled to be reimbursed from Yamini’s property.
Conditions, which need to be satisfied:
a)     The minor or the person incapable of contracting is not personally liable.
b)     Only property is liable.
c)     The goods supplied or services rendered must qualify as necessaries.
d)     The only reasonable amount can be claimed for the supply of necessaries.
e)     Such necessaries should be supplied only to person incapable of contracting or his dependents.
2) Reimbursement of persons paying money due by another, in payment of which he is interested:-
The Contract Act lays down that if one person who is interested in the payment of money which another is bound to pay by law, and the former pays it, he is entitled to be reimbursed by the latter.
Example: A sub-tenant pays the arrears of rent due by the tenant to the landlord, in order to save the tenancy from forfeiture.
3) Obligation of Person Enjoying Benefit of Non-Gratuitous Act:-
When a person does something lawfully to another or delivers something to him, not intending to do so gratuitously, the other person enjoys the benefits thereof, he is bound to compensate the latter for the thing done or delivered.
Example: SM & Sons delivers a basket containing any fruits to Mr Kishore, by mistake. Mr Kishore and his family consume it, despite knowing that the goods are not intended for them. Now, the family must compensate SM & sons.
4) Responsibility of Finder of Lost Goods:-
When a person comes across things belonging to another and takes them into his custody, he must restore it to the true owner.
Example: A finds a purse left behind by a passenger on a bus. If he takes custody of it, he is under an obligation to restore it to its owner.
5) Liability of Person to Whom Money is Paid or thing Delivered by Mistake / under coercion
Example: A and B jointly owe Rs 5000/- to C, A alone pay the amount to C, and B, not knowing this fact, pay Rs 5000/- over again to C. C is bound to repay the amount to B.

Study Notes on Contract for Law Entrance Exam - Free Consent

You can also try the following Practise question.


1.  The basis of quasi-contracts is
A. Existence of voidable contracts between the parties
B.  Existence of valid contracts between the parties
C. Consent
D. Prevent unjust enrichment at the expense of others
Ans: D
 2. A person enjoying the lawful non- gratuitous acts of another
A. Liable to compensate
B. Has to perform the same act on the other
 C. Has no liability
D. None of the above
Ans: A
 3.  Anand supplies necessities to Yamini, a mentally unsound person, which are suitable to her condition. Anand is
A. Entitled to be reimbursed from Yamini’s property
B. Not entitled to anything
C. Yamini has to perform the same act for Anand
D. None of the above    
Ans: A 
4. If A agrees to pay rent for B for the month of June. Is be liable to compensate A
A. Yes
B. No
C. Maybe
D. None of the above
Ans: A
 5.  A delivery from Amazon has been wrongly sent to Raju. Raju in spite of knowing that he is not the true owner of the goods uses them. Is Raju liable to compensate?
A. Yes
B. No
C. Maybe
D. None of the above
Ans: A
 6. Maya finds a bag on the seat next to her. She takes the bag with her. She
A. Is under a liability to return the bag to the owner
B. Is under no liability
C. Likes the bag so she can keep it
D. None of the above
Ans: A
 7.  If Ted finds a yellow umbrella at a club and decides to take it. He
A. has must restore it to the true owner     
B. finders, keepers
C. Both (a) and (b)
D. None of the above
Ans: A
 8.  Supply of necessities has been dealt with under which Sec. of The Indian Contract Act?
A. 13          
B. 63
C. 68
D. 16
Ans: C
 9. Reimbursement of payment of money due by another has been dealt with in
A. Sec.68
B. Sec. 69
C. Sec. 70
D. None of the above
Ans: B
 10. Obligation of person enjoying non-gratuitous act has been dealt with in
A. Sec. 69
B. Sec. 70
C. Sec. 71
D. None of the above
Ans: B
 11. The responsibility of finder of goods falls under which Sec of The Indian Contract Act?
A. 68
B. 70
C. 71
D. 73
Ans: C
 12. Liability of person to whom money is paid or goods are delivered by mistake falls under which Sec. of The Indian Contract Act
A. 73          
B. 74
C. 72
D. 76
Ans: C
 13. A mistook B to be C and paid his debt of Rs. 5000 to him. C is liable to either repay or return the money
A. Yes
B. No
C. Maybe
D. None of the above
Ans: A
 14. A and B jointly owe Rs 5000/- to C, A alone pays the amount to C, and B, not knowing this fact, pays Rs 5000/- over again to C. C is
A. Not liable          
B. Bound to repay the money to B
C. Rich
D. None of the above
Ans: B
 15. A leaves goods at B’s house by mistake. B starts using them as his own. Is B bound to pay A for them?
A. Yes
B. No
C. Maybe
D. None of the above
Ans: A


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Study Notes on Contract for Law Entrance Exam - Quasi Contracts
Get the updated and most relevant study notes on Contract of Quasi Contracts for upcoming CLAT and other Law Entrance Examination.
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