Chapter 8: Certain Relations Resembling Contracts-Theory

Question 1

What is meaning of quasi/constructive contract?

Answer 1

A quasi contract is not an actual contract between parties.
It is created by law on the basis of principle of equity i.e. “no one should get benefit at the expense of other”.

Question 2

Enlist types of Quasi Contracts. (5 Headings)

Answer 2

1. Necessaries supplied to minor or person of unsound mind.
2. Money paid for another person by interested person.
3. Non gratuitous act.
4. Finder of goods.
5. Money paid or goods delivered by mistake or under coercion.

Question 3

Under types of Quasi Contracts, describe,
1. Necessaries supplied to minor or person of unsound mind.

Answer 3

If a person supplies necessities of life (e.g. paying expenses for living, medicine, studies) to a minor or lunatic or to their dependents, he can recover the reasonable price from the property of such minor or person of unsound mind.
Note: (Amount can be recovered from property. Minor/unsound are not personally liable and cannot be declared insolvent).

Question 4

Under types of Quasi Contracts, describe,
3. Non gratuitous act. (Goods/Services given) (4)

Answer 4

If a person provides goods or services to other person (even without being asked), he can recover price for those goods or services, provided all following conditions are met:
- The act is done lawfully.
- The act is non-gratuitous.
- Other person has enjoyed the benefit of the act.

Question 4

Under types of Quasi Contracts, describe,
2. Money paid for another person by interested person. (3)

Answer 4

If an interested person pays the legal obligation of another person, he is entitled to recover the amount from that another person, if following conditions are satisfied:
- Payment must be such as the other party was bound by law to pay.
- Payment should be for the protection of interested party’s own interest.

Question 5

Under types of Quasi Contracts, describe,
4. Finder of goods (is responsible to)

Answer 5

Finder of the lost goods is responsible to:
- Take reasonable care of goods (as man would take care of his own goods) and
- Take reasonable steps to trace its true owner.

Question 6

Under types of Quasi Contracts, describe,
4. Finder of goods (has right to) .(2(2)

Answer 6

Finder of the lost goods has right to:
- Retain goods, until the true owner is found.
- Sell goods when:
* goods are of perishable nature, or
* lawful charges amount to 2/3rd or more of value of goods.

Question 7

Under types of Quasi Contracts, describe,
5. Money paid or goods delivered by mistake or under coercion.

Answer 7

A person to whom money has been paid or something delivered by mistake or under coercion must repay or return it.