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Introduction

Quasi-contracts, also known as implied contracts or constructive contracts, are agreements that arise from the conduct of parties without formal agreement. In this article, we will explore the concept of quasi-contracts within the framework of Indian contract law, focusing on its relevance to law students and LLB (Bachelor of Laws) candidates.

Definition and Concept​

A quasi-contract is not a true contract but rather a judicially created remedy to prevent unjust enrichment when one party has conferred a benefit upon another party who is aware of the benefit but refuses to pay for it. The key elements of a quasi-contract are:

  1. Unjust enrichment
  2. Knowledge of the benefit received
  3. Refusal to pay for the benefit

In dia, the concept of quasi-contracts is primarily governed by the following legal provisions:

Section 68 of the Indian Contract Act, 1872​

This section states that where a person has received any property, necessary for his immediate personal use, without knowing that the delivery thereof was accompanied by conditions as stipulated by the donor, such person must restore it on demand.

Legal Section Number: Section 68, Indian Contract Act, 1872

Section 70 of the Indian Contract Act, 1872​

This section provides that where a person has delivered to another anything capable of delivery, such delivery must be made by act of the party to be charged, unless the document of title purports on its face to be a bill of exchange, promissory note, or cheque drawn on a bank.

Legal Section Number: Section 70, Indian Contract Act, 1872

Case Law Illustrations​

Let's examine some real-life cases to illustrate the application of quasi-contracts in Indian law:

M.P. Sharma v. Satish Chandra (1968)​

In this landmark case, the Supreme Court of India held that the doctrine of constructive trust could be applied to recover money paid under a void agreement.

Case Citation: AIR 1968 SC 1515

Legal Section Number: Not applicable (Pre-Constitutional case)

State Bank of India v. Gopal Singh (1990)​

The Delhi High Court ruled that a bank could recover interest on a loan even though the loan agreement was void due to lack of consideration.

Case Citation: 1990 (74) DRJ 1

Legal Section Number: Not applicable (Specific to banking regulations)

Practical Application​

Understanding quasi-contracts is crucial for law students and practicing lawyers alike. It helps in:

  1. Identifying situations where a formal contract may not exist but justice demands compensation.
  2. Analyzing complex commercial transactions where parties may have acted in good faith but without explicit agreement.
  3. Providing remedies in cases where one party has benefited from another's actions without proper compensation.

Conclusion​

Quasi-contracts play a significant role in Indian contract law, providing a means to address situations where traditional contractual principles may not apply. By understanding these concepts and their practical applications through case law, law students and LLB candidates can develop a more comprehensive grasp of contract law in India.

Remember, while this article provides an overview of quasi-contracts in Indian law, it is essential to consult primary sources and recent case law for specific applications in practice.