lecture-11 - Learning Outcomes LESSON 11: QUASI CONTRACTS...

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Learning Outcomes After today’s class you should be able to answer the following questions: · The meaning of quasi contract · The different types of quasi contract · The meaning of contingent contract · The nature and effect of contingent contract · The differences between wagering and contingent contracts. The first of all we will start with the Quasi Contracts Quasi Contracts Introduction We have seen that a contract is the result of an agreement enforceable by law. But in some cases there is no offer, no acceptance, no consensus ad idem and in fact no intention on the part of parties to enter into a contract and still the law, from the conduct and relationship of the parties, implies a promise imposing obligation on the one party and conferring a right in favour of the other. In other words under certain special circumstances obligations resembling those created by a contract are imposed by law although the parties have never entered into a contract. Such obligations imposed by law are referred to as ‘Quasi-Contracts’ or ‘Constructive Con-tracts’ under the English law, and “certain relations resembling those cre-ated by contracts” under the Indian law. The term’ quasi-contract’ has been used because such a contract resembles with a contract so far as result or effect is concerned but it has little or no affinity with a contract in respect of mode of creation. A quasi-contract rests upon the equitable “doctrine of unjust enrich-ment” which declares that a person shall not be allowed to enrich himself unjustly at the expense of another. Duty, and not a promise or agreement, is the basis of such contracts. It may be noted that a suit for damages for the breach of the contract can be filed in the case of a quasi-contract in the same way as in the case of a completed contract (Sec. 73). The Contract Act deals with ‘quasi-contractual obligations’ under Sections 68 to 72, which are discussed below: I. Claim for necessaries supplied to a person incapable of contract-ing or on his account (Sec. 68). “If a person, incapable of entering into a contract, or anyone whom he is legally bound to support, is supplied by another person with necessaries suited to his condition in life, the person. who has furnished such supplies is entitled to be reimbursed from the property of such incapable person.” This provision has already been considered in connection with minor’s agreements in the chapter of “Capacity of Parties.” With a view to recapitu-late it may be stated here that although agreements by minors, idiots, luna-tics, etc., are void ab-initio, but Section 68 makes an exception to this rule by providing that their estates are liable to reimburse the supplier who supplies them or to some one whom they are legally bound to support with ‘necessaries’ of life. The following points need to be emphasized: (i) The Section does not create any personal liability but only the estates are liable. (ii)
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This note was uploaded on 09/27/2011 for the course BUS 100 taught by Professor Sherry during the Spring '11 term at Faculty of English Commerce Ain Shams University.

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lecture-11 - Learning Outcomes LESSON 11: QUASI CONTRACTS...

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