1.

CONTRACT LAW
QUASI CONTARCT

What Is a Quasi Contract?

Quasi contract is another name for a contract implied in law, which acts as
a remedy for a dispute between two parties that don't have a contract. A
quasi contract is a legal obligation—not a traditional contract—which is
decided by a judge for one party to compensate the other. Thus, a quasi
contract is a retroactive judgment to correct a circumstance in which one
party acquires something at the expense of the other.

These arrangements may be imposed when goods or services are

accepted by a party even though they might not have been requested. The
acceptance then creates an expectation of payment for the providing party.

KEY TAKEAWAYS

 A quasi contract is a retroactive remedy between two parties who

have no contract with one another.
 It is created by a judge to correct a circumstance in which one party
acquires something at the expense of the other.
 The plaintiff must have furnished an asset, item, benefit, or service
to another party such that the defendant should have known to pay
for it.
 The defendant must have accepted, or acknowledged receipt of, the
item but made no effort or offer to pay for it even when they know
they should.

Understanding Quasi Contracts

Under common-law jurisdictions, quasi contracts originated in the Middle
Ages under a form of action known in Latin as indebitatus
assumpsit, which translates to being indebted or to have undertaken a
debt.

This legal principle was the courts' way of making one party pay the other
as if a contract or agreement already existed between them. So the
defendant’s obligation to be bound by the an exchange is viewed to be
implied by law. From its earliest uses, the quasi contract was typically
imposed to enforce restitution obligations.

It would be handed down ordering the defendant to pay restitution to the

plaintiff. The restitution, known in Latin as quantum meruit, or the amount
deserved, is calculated according to the amount or extent to which the
defendant was unjustly enriched.

This remedy is also referred to as a constructive contract as it is

constructed by a judge when there is no existing contract between two
parties. If there is an agreement or contract already in place, a judge will
not create a quasi contract because there is no need to do so.

Implied-in-law contract is an alternate name for a quasi contract.

Purpose

Quasi contracts outline the obligation of one party to a second when the
first receives a benefit or property from the second. A person might
knowingly or unknowingly give something of value to another without an
agreement being made. It is assumed that a reasonable person would pay
for it, give it back, or otherwise compensate the giver upon receiving the
item or service.

Quasi contracts are awarded as a remedy to a giver to keep them from

being taken advantage of and keep others from being unjustly enriched.

Legality

Because the agreement is constructed in a court of law, it is legally

enforceable, so neither party has to agree to it. The purpose of the quasi
contract is to render a fair outcome in a situation where one party has an
advantage over another. The defendant—the party who acquired the
property—must pay restitution to the plaintiff—the wronged party—to cover
the value of the item.

Requirements

Certain aspects must be in place for a judge to issue a quasi contract:

 One party, the plaintiff, must have experienced a loss as a result of a

transfer.
 The defendant must have or acknowledged receipt of and retained
the item of value, but made no effort or offer to pay for it.
 The plaintiff must then demonstrate through burden of proof why the
defendant receive an unjust enrichment.
 The item or service cannot have been given as a gift.
 The defendant must have been given a choice to accept or deny the
benefit.
Quasi Contract vs. Contract
 Quasi Contract  Contract
 Only Implied in Law  Can Be Express or Implied
 Ordered by a Judge  Initiated by Party Agreement
 No Contract Exists  A Legal Contract Exists

Quasi Contract

 Only Implied in Law: Implied in law means that a payment

obligation is created by law, in this case a judge who renders a
remedy.
 Ordered by a Judge: Quasi contracts are ordered by a judge
because contracts implied in law are not covered under contract law.
 No Contract Exists: Quasi contracts are not contracts, they are
remedies for disputes between parties that are the result of one
party receiving an unjust enrichment.

Contract

 Can Be Express or Implied: There are generally two types of

contracts, express and implied. An express contract is one where
terms are laid out and both parties agree to abide by the terms. An
implied contract is one where mutual assent is given for an
exchange, but there are no explicit terms.
 Initiated by Party Agreement: The parties involved in an exchange
agree to the exchange.
 A Legal Contract Exists: Express and implied contracts are legally
recognizable and enforceable.

Types of Quasi Contract

The types of quasi contract are outlined in sections 68 thru 72 of the
Contract Act of 1872, as follows:

 Section 68: A person who is incapable of making contracts is

provided with the supplies by a third party on behalf of the incapable
person or anyone he is legally obligated to support. Third parties can
recover the price of the supplier from the property of the unable
person.
 Section 69: A person who makes a payment on behalf of another
party is obligated to pay the money according to law. Therefore, the
person who made the payment is entitled to reimbursement from the
other party.
  Section 70: When a person does something lawfully for another
person, or delivers something without intending to do the same
gratuitously, the receiving party is obliged to compensate the former
party.
 Section 71: A person who finds goods that belong to another party
and takes ownership of them has the same responsibility as a
bailee.
 Section 72: Someone who has been paid or delivered under
coercion or mistakenly must repay or return the money.

Unjust enrichment is what happens when an individual benefits from a

situation inappropriately, either because of luck or because of another
person's bad fortune.4

Advantages and Disadvantages of Quasi Contracts

Advantages of using a quasi contract include the fact that these legal
instruments are typically based on the unjust enrichment principle. This
prevents one party from gaining an undue advantage over another. Thus,
it is a safeguard for innocent victims of wrongful acts and a legal
alternative to compensation for damages, ensuring that the one who
provides services or goods gets compensated for the same.  In order to
comply with quasi contracts, all parties involved are obliged to follow them,
as they are created by court order. 

There are also some drawbacks or limitations. Those who received

benefits negligently, unnecessarily, and by miscount will not be held liable.
Although a person can be liable under a quasi contract, he cannot be
charged more than the amount he has received under the contract. Thus,
there is no provision available for the recovery of more amount than that
which has been received by the plaintiff - if the plaintiff obtains only part of
the services/goods that he contracted for originally, he cannot claim a
compensation as the whole amount is not recovered. 

 If there's an express agreement between the parties, plaintiffs have to

give up all profits. Though a quasi contract is a legal remedy that provides
protection from unjust enrichment of the beneficiaries of the services or
goods, a plaintiff can get relief only if he can prove that he has suffered
losses due to the breach of the contractual obligations of the defendant. 

Quasi Contract Pros and Cons

Pros
 Prevents one party from unfairly benefitting at the expense of
another
  Court order is legally binding

Cons
 Not suitable in all cases
 Amount cannot include additional damages

What Are Quasi Contracts?

A quasi contract is also known as an "implied contract," in which a
defendant is ordered to pay restitution to the plaintiff, or a constructive
contract, meaning a contract that is put into existence when no such
contract between the parties exists.

What Is a Quasi Contract in Simple Words?

A quasi contract is an obligation between two parties created by a court
order rather than an agreement between the parties to prevent enrichment.

What Is a Quasi Contract Example?

An example might be if Person A offers to pay Person B to help them
move to a new apartment, and agrees to pay the $100 for the help. The
agreement is verbal and not a formal contract. Person B commits to the
job, turns down a different job, and shows up on the required day to help
with the move. But when Person B shows up, Person A tells them that they
are not needed after all and that the job is canceled. Person B files a civil
suit to have the missing money paid and a quasi contract might be
instituted, if the judge agrees that money is owed.

The Bottom Line

With a quasi contract, a defendant is required to behave as if there was a
legal contract with the plaintiff. It is designed so that one party is not
unjustly enriched at the expense of the other. Unjust enrichment is when
someone benefits unfairly, either due to circumstance or the other party's
misfortune. A quasi contract is rendered by a judge, as a settlement, after
the fact, when a formal contract otherwise did not exist.
Quasi Contract
A quasi-contract is a fictional contract acknowledged by the court. The concept of a
quasi-contract is mentioned in chapter-V, section 68 to section 72 of the Indian
Contract Act, 1872.

TABLE OF CONTENT
 Meaning of Quasi-Contract
 Salient Facets of Quasi Contractual Rights
 The Doctrine of Quasi Contracts
Chapter-V, section 68 to section 72 of the Indian Contract Act, 1872, speaks about a “quasi-
contract” or certain family members resembling those created by way of contracts. These family
members resembling a contract are recognised as contracts implied in law or a quasi-contract. It
is, however, not an actual contract, as it is called, a consensual contract-based totally on the
parties’ agreement.

These tasks come into existence with the aid of fiction of law. The concept of quasi is derived
from the Roman law “obligation quasi ex contractu”. A quasi-contract is not an actual contract
entered into by way of parties intentionally. In fact, it is not a contract at all because the essential
factors for the formation of a contract are absent. It is a statutory requirement.

Meaning of Quasi-Contract
A quasi contract means something with quasi ability, or something that appears to be something,
however, it is not truly so. A contract is a potential agreement, oral or written, enforceable by
using the law. A quasi-contract is a retroactive association between two events with no previous
obligations to one another. It is a contract created by means of a court’s order in the absence of
any agreement between the parties.

Salient Facets of Quasi Contractual

Rights
1. A quasi-contract is not longer than an actual contract.

2. It is no longer based upon the offer and acceptance rule.

3. It does not occur from any formal agreement but is imposed by means of law.

4. It is a right that is reachable no longer against the whole world but against a specific man
or woman.

5. It is based on the idea of equity, appropriate conscience, justice, and ideas of herbal
justice.
The Doctrine of Quasi Contracts
Unjust enrichment means that an individual shall not be allowed to enrich himself at the expense
of unknown parties. Quantum meruit or “the actual value of services operate” determines the
amount to be paid for services when no contract exists or when there is doubt as to the amount
due for the work carried out but achieved under instances when charges ought to be expected.

Types of Quasi Contract

1. Supply of Necessities to Incapable Persons (Section 68):

If a man or woman is incapable of entering into a contract, or all people whom he is legally sure
to support is supplied by means of any other person with necessaries, applicable to his condition
in life, the man or woman who has furnished such resources is entitled to be reimbursed from the
property of such an incapable person.

2. Payment by Way of a Fascinated Character (Section 69):

According to section 69, an individual who is willing in a monetary fee that anyone else is bound
to pay, and who, as a result, may pay it, is entitled to compensation from the other. 

3. Obligation to Pay Gratuitous Non-Acts (section 70):

According to section 70, when a person lawfully does or gives you something for the other, no
longer intending to do so gratuitously, and the person derives any gain from it, he is responsible
for compensating or fixing the factor so done or delivered.

4. Responsibility of Finder of Goods (section 71):

According to section 71, a man or woman who finds goods of someone else and takes them into
his custody is a concern to identical accountability as the bailee is sure to take a lot care of the
items as a man of everyday prudence would.

In addition to that, he ought to make efforts to trace the owner. If not, he will be responsible for
one-sided conversation. Until the proprietor is observed, the property will vest with the finder; he
can sell in case items are perishable, the owner cannot be found, the proprietor refuses to pay
for the legal fees etc.

5. Payment of Delivery via Mistake or Coercion (section 72):

“Liability of individuals to whom cash is paid, or issue delivered by way of mistake or coercion.” It
is the capacity of the liability of the person to whom cash is paid or matters delivered by using
mistakes or beneath coercion, to repay the money or return the goods to the proper owner.
Conclusion

A quasi-contract concludes that the principle of a quasi-contract is frequently overlooked.

However, it still holds an important place when you consider that the precept is grounded on
ideas of justice and equity. It can be concluded that quasi contracts are no longer contracts as
per the Indian Contract Act 1872. However, several tasks are imposed with the aid of law and
only in favourable situations. Quasi-contracts only create duty so that there is no unjust
enrichment on one party.

A quasi-contract exists in the absence of a written contract. It may additionally be a court docket
ordered to keep away from one party gaining at the fee of another party’s actions. However, the
simple nature and essence of the principle remain identical besides any drastic change.

Quasi Contract
The word ‘Quasi’ means pseudo. Hence, a Quasi contract is a
pseudo-contract. When we talk about a valid contact we expect it to
have certain elements like offer and acceptance, consideration, the
capacity to contract, and free will. But there are other types of
contracts as well.

There are cases where the law implies a promise and imposes
obligations on one party while conferring rights to the other even
when the basic elements of a contract are not present. These promises
are not legal contracts, but the Court recognizes them as relations
resembling a contract and enforces them like a contract.

These promises/ relations are Quasi contracts. These obligations can

also arise due to different social relationships which we will look at
in this article.

The core principles behind a Quasi Contract are justice, equity and
good conscience. It is based on the maxim: “No man must grow rich
out of another persons’ loss.”

Let’s look at an example of a Quasi contract: Peter and Oliver enter a

contract under which Peter agrees to deliver a basket of fruits at
Oliver’s residence and Oliver promises to pay Rs 1,500 after
consuming all the fruits. However, Peter erroneously delivers a
basket of fruits at John’s residence instead of Oliver’s. When John
gets home he assumes that the fruit basket is a birthday gift and
consumes them.

Although there is no contract between Peter and John, the Court

treats this as a Quasi-contract and orders John to either return the
basket of fruits or pay Peter.

Features of a Quasi Contract

1. It is usually a right to money and is generally (not always) to

a liquated sum of money
2. The right is not an outcome of an agreement but is imposed
by law.
3. The right is not available against everyone in the world but
only against a specific person(s). Hence it resembles a
contractual right.
Sections 68 – 72 of the Indian Contract Act, 1872 detail five
circumstances under which a Quasi contract comes to exist.
Remember, there is no real contract between the parties and the law
imposes the contractual liability due to the peculiar circumstances.
 Source: Pixabay

Section 68 – Necessaries Supplied to Persons Incapable of Contracting

Imagine a person incapable of entering into a contract like a lunatic

or a minor. If a person supplies necessaries suited to the condition in
life of such a person, then he can get reimbursement from the
property of the incapable person.

John is a lunatic. Peter supplies John with certain necessaries suited

to his condition in life. However, John does not have the money or
sanity and fails to pay Peter. This is termed as a Quasi contract and
Peter is entitled to reimbursement from John’s property.

However, to establish his claim, Peter needs to prove two things:

1. John is a lunatic
2. The goods supplied were necessary for John at the time they
were sold/ delivered.
Section 69 – Payment by an Interested Person

If a person pays the money on someone else’s behalf which the other
person is bound by law to pay, then he is entitled to reimbursement
by the other person.

Peter is a zamindar. He has leased his land to John, a farmer.

However, Peter fails to pay the revenue due to the government. After
sending notices and not receiving the payment, the government
releases an advertisement for sale of the land (which is leased to
John). According to the Revenue law, once the land is sold, John’s
lease agreement is annulled.

John does not want to let go of the land since he has worked hard on
the land and it has started yielding good produce. In order to prevent
the sale, John pays the government the amount due from Peter. In this
scenario, Peter is obligated to repay the said amount to John.
Section 70 – Obligation of Person enjoying the benefits of a Non-Gratuitous
Act

Imagine a person lawfully doing something or delivering something

to someone without the intention of doing so gratuitously and the
other person enjoying the benefits of the act done or goods delivered.
In such a case, the other person is liable to pay compensation to the
former for the act, or goods received. This compensation can be in
money or the other person can, if possible, restore the thing done or
delivered.

However, the plaintiff must prove that:

 The act that is done or thing delivered was lawful

 He did not do so gratuitously
 The other person enjoyed the benefits
Section 71 – Responsibility of Finder of Goods

If a person finds goods that belong to someone else and takes them
into his custody, then he has to adhere to the following
responsibilities:

 Take care of the goods as a person of regular prudence

 No right to appropriate the goods
 Restore the goods to the owner (if found)
Peter owns a flower shop. Olivia visits him to buy a bouquet but
forgets her purse in the shop. Unfortunately, there are no documents
in the purse to help ascertain her identity. Peter leaves the purse on
the checkout counter assuming that she would return to take it.

John, an assistant at Peter’s shop finds the purse lying on the counter
and puts it in a drawer without informing Peter. He finished his shift
and goes home. When Olivia returns looking for her purse, Peter
can’t find it. He is liable for compensation since he did not take care
of the purse which any prudent man would have done.

Section 72 – Money paid by Mistake or Under Coercion

If a person receives money or goods by mistake or under coercion,

then he is liable to repay or return it.

Let us see an example. Peter misunderstands the terms of the lease

and pays municipal tax erroneously. After he realizes his mistake, he
approached the municipal authorities for reimbursement. He is
entitled to be reimbursed since he had paid the money by mistake.

Similarly, money paid by coercion which includes oppression,

extortion or any such means, is recoverable.

Solved Question on Quasi Contract

Q: Peter and Oliver enter a contract under which Peter agrees to
deliver a basket of fruits at Oliver’s residence and Oliver promises to
pay Rs 1,500 after consuming all the fruits. However, Peter
erroneously delivers a basket of fruits at John’s residence instead of
Oliver’s. When John gets home he assumes that the fruit basket is a
birthday gift and consumes them. Does John have to pay for the
goods?

Ans: Yes, John has to pay for the fruit basket. Although there is no
contract between Peter and John, the Court treats this as a Quasi
contract and orders John to either return the basket of fruits or pay
Peter.
2. LABOUR LAW

Worksmen Standing Order

3. Legal Lang.

Vishakha v/s State of Rajasthan case

Vishakha Case
Case Summary – Vishakha v State of Rajasthan

The growth of a society is often determined by the way it treats its most vulnerable sections;
women and children are among the most vulnerable in a society like ours and to safeguard their
rights is of paramount importance. Sexual harassment of women in general and such
harassment at workplaces is a phenomenon that puts women at higher levels of risk. A robust
mechanism against the same goes a long way in safeguarding their interests. The decision of
the Supreme Court in Vishakha v State of Rajasthan was a landmark one as it laid down
elaborate guidelines to deal with the menace of sexual harassment against women at
workplaces. The ruling was delivered by a three-judge bench comprising of Chief Justice Verma,
Justice Sujata V. Manohar and Justice B.N. Kripal.

Vishakha Case Background

It all started when Banwari Devi, a social worker in a programme to stop child marriages, stopped
a chid marriage that was taking place in an influential Gujjar family. While Banwari Devi did a
commendable job despite protests against her, the Gujjars were hell-bent on taking revenge. One
Ramakant Gujjar along with five of his men gang-raped her in a brutal manner in front of her
husband. Her subsequent attempt to file a police case was met with apathy for a long time and
once she succeeded in doing so, she faced further stigma and cruelty. The trial court acquitted
the accused citing lack of evidence but Banwari Devi, along with a sympathizer, approached the
Supreme Court by way of a writ petition which eventually led to an immensely important
judgement.

Vishakha Case Details

The Supreme Court was to delve into the deep-rooted gender inequality in Indian society which
manifests itself in the form of violence against women (in the form of sexual harassment at
workplaces and rape). The Supreme Court while looking into the issue also had to decide
whether it was willing to lay down elaborate guidelines to deal with the same. The Court rose to
the occasion and did come up with several guidelines to stop sexual harassment at workplaces
and these guidelines are popularly known as Vishakha Guidelines.
  The Court ruled that sexual harassment leads to depravity among the victims and was a
gross violation of their fundamental rights as provided under Articles 14, 19 and 21.
 The Court declared that in order to meaningfully dispose of the case, a set of guidelines
are necessary. The Union of India also gave its consent for the guidelines through the
Solicitor General, in addition to making a commitment to devise a women’s policy that
would make sure that women’s rights are protected to provide them with a safe
atmosphere to flourish in various fields of life.
The Court defined sexual harassment as any physical touch or conduct, any unpleasant taunt or
misbehaviour, showing of pornography and asking for any kind of sexual favours.

 It was held that sexual harassment at the workplace should be informed, produced and
circulated. Every act of harassment shall be dealt with in an appropriate manner which
shall include criminal proceedings and disciplinary action.
 For the time-bound and effective redressal of complaints, a robust mechanism should be
in place at workplaces.
 A complaints committee should be put in place which should be headed by a woman and
more than half of its members should also be women.
 In order to prevent any pressure from the higher-ups at the workplace, a third party like an
NGO should be involved.
 Moreover, concrete steps must be taken to create awareness at the workplace as to
what sexual harassment is and how to approach appropriate people if someone is
harassed at the workplace.
Sexual Harassment at Workplace (Prevention, Prohibition and Redressal) Act, 2013

Seventeen years after the Vishakha Guidelines were pronounced, the Parliament woke up from
its deep slumber and passed the Sexual Harassment at Workplace (Prevention, Prohibition and
Redressal) Act, 2013.

 The Act is much wider in application than the guidelines but a cursory look tells us that
the basic framework has been borrowed from the Vishakha Guidelines.
 The “aggrieved women” covers a wide range of women irrespective of age and
employment status while “workplace” includes corporate and private places as well as
both the organised and unorganised sector.
 Specific time limits have been provided for inquiry and redressal of complaints. Penalties
including fines up to Rs 50,000 have been prescribed for non-compliance with the
provisions of the Act.
 The most important feature of the Act is the establishment of the Internal Complaints
Committee (ICC) in establishments with 10 or more employees by an order given in
writing by the employer.
 This Committee shall constitute a presiding officer who should be a senior female
employee, an external member to guard against undue influence from the employer or
any other higher-ups, and two other members.
 A Local Complaints Committee (LCC) is a committee to receive complaints of sexual
harassment at the workplace from establishments that do not have an Internal
Complaints Committee because they have less than 10 workers, or when the complaint is
against the employer himself.
 o This Committee is important for women who work in the unorganised sector or
for domestic workers.

o The LCC is mandated under Section 6 of the Act.

o The committees have the same powers as that of a civil court under the Civil
Procedure Code. However, strict procedural laws shall not be followed during the
complaint redressal.

 The Committees may take steps towards conciliation (informal settlement between
parties) at the request of the woman.
 Otherwise, it shall initiate an enquiry into such allegations. If a prima facie case of sexual
harassment exists, the Committee shall submit its finding to the police station.
 On the completion of the report, it shall be submitted to the employer or the district
officer.
Conclusion

The merits and demerits of judicial activism are always debated in legal circles; there are pros
and cons to it but the Vishakha judgment enforces the good side of the activism of judges.
Before the pronouncement of Vishakha, India was lacking a law on sexual harassment even after
five decades of independence and numerous instances of gender discrimination and sexual
violence against women.  The judgement brought to fore the evil of sexual harassment even
though it was brushed under the carpet for a very long time till then. The act of sexual
harassment against women takes away from them dignity, which is an inherent right of every
human being and a single act of harassment creates a lifetime of sorrow. There is no doubt that
the Vishakha Guidelines and the enactment of 2013 are welcome steps but the eradication of the
culture of sexual harassment at workplaces is still a long way away and it, among other things,
requires removing the stigma that is associated with the victims of such brazen actions.

4. Law of Tort

Defences in Tort