Quasi Contract
Quasi Contract Definition
Quasi Contract is a type of contract that deals with the rights or liabilities accruing from relations resembling those created by Contract. It is not a real contract and thus called a consensual contract based on the agreement of the parties.
These contracts are based on the principal of Equity and Justice that prevent enrichment of one person at the cost of another. It is created by a judge 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, though not requested, by a party. The acceptance then creates an expectation of payment.
There are certain dealings which are not contracts strictly, though the parties act as if there is a contract. The contract Act specifies the various situations which come within what is called quasi contract.
Quasi contract Example
For example, John ordered Burger to be delivered to his house. If that Burger is delivered to Nick’s House , and someone he enjoys your burger, a quasi contract could be initiated.
Ram ordered a Tshirt online for his wife, as a birthday present. The delivery boy mistakenly delivered the dress to the lady in their neighborhood, and the neighbor used the Tshirt thinking that it was ordered by her husband In this case, the lady is bound to return the parcel to Ram or pay the price for that Tshirt.
Kinds of Quasi Contract
- SUPPLY OF NECESSITIES (Sec.68)
- PAYMENT BY AN INTERSTED PERSON (sec. 69)
- OBLIGATION TO PAY FOR NON-GRATUITOUS ACTS (Sec. 70)
- RESPONSIBILITIES OF FINDER OF GOODS (Sec. 71)
- MISTAKE OR COERSION (Sec. 72)
Promissory Estoppel Vs Quasi Contract
Basis of Differences | Promissory Estoppel | Quasi Contract |
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Definition | A promise made without a contract that must be kept. | A contract created by the court to stop unfair gain. |
Agreement | Involves a promise, but no official contract. | No agreement between the people; created by the court. |
Reason for Creation | To stop someone from breaking a promise that another person relied on. | To prevent one person from getting something without paying for it. |
Requirement | One person must rely on the promise and suffer a loss. | One person must receive a benefit unfairly. |
Court’s Role | Court enforces the promise to prevent harm. | Court imposes the contract to correct an unfair situation. |
Example | If someone promises to give you something, and you do something based on that promise, they must keep it. | If you accidentally pay someone for something they didn’t give you, the court may make them return the money. |
Quasi Contract MCQ with Answers |
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Which of the following is a measure of recovery when a quasi-contract is involved?A. The amount set forth in the contract. E. Damages will be computed the same as they are computed for any other contract. |
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Which of the following is required in order to recover in quasi contract?A. An implied or express promise |
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The term ‘quasi-contracts’ is:A. Defined by section 68 of the Indian Contract Act |
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Quasi-contracts or implied contracts are exceptional kinds of contracts by which:A. One party is bound to pay money in consideration of something done or suffered by the other party |
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Which of the following statements regarding Quasi-contracts is incorrectA. It resembles a contract |
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Which of the following transactions cannot be described as Quasi-contractsA. Claims of necessaries supplied to incompetent person |
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The juridical basis of quasi-contractual obligation can be explained through the theory of:A. Indebitatus assumpsit |
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Quasi-contracts are:A. not contracts in the real sense of the word |
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Which of the following statement is true in connection with Quasi-contract.
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