What is a Quasi Contract?

Quasi contract

A Quasi contract is a contract that is created by court’s order in absence of any agreement between the parties.A Quasi contract does not involve any essentials of a valid contract as defined under Indian Contract  Act 1872.

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Though Indian Contract Act 1872 has not defined Quasi contracts,Sec 68-72 deals with ‘certain relations resembling those created by contracts’. Quasi contract can be defined  ‘as an obligation enforced by the law on one party to avoid unjust enrichment of that party’. There is no prior agreement,offer and acceptance in a Quasi contract. Quasi contract is enforced when any person enjoys the benefit of something but does not pay for it or the other person might have to bear the burden of it.

For eg-A contracts with B to deliver goods to A’s residence.B accidentally delivers it to C who consumes these goods and refuses to pay for it.

Now in the above case C has enjoyed the benefit of goods but does not pay for it and B has to bear all the burden of it.In such cases courts order C to pay back to B as he has enjoyed the benefit of the goods.The intention of the courts on enforcing such obligations on the person who enjoys the benefit of goods or any sum of amount is to hold the same person to also compensate the other person who is the provider of goods.It is to be noted that The Indian Contract,1872 has not used the words ‘Quasi Contracts’ rather used certain relations resembling as contracts’ as per Sex 68 of the Act. This indicates that these are not contracts but are deemed to be contracts when the law puts certain obligations.

The Indian Contract Act 1872 has mentioned 5 situations which are deemed to be Quasi contracts or quasi contracts are imposed.

Sec 68-Necessaries supplied to a person who is incapable of contracting.

When any necessary goods which are important for one’s survival are supplied to a person who is not capable of contract,then the person who is supplying such goods has the right to recover the amount from such person’s property. For example Jay sends goods to Ajay who is a lunatic and for the welfare of Ajay’s young son and daughter.Jay is entitled to receive the money from Ajay’s property.

Sec 69-Reimbursement by an interested party.

When one person who is interested in certain property/goods pays the amount on the behalf of the owner of the person who is liable in the first place,then the one paying shall claim.it later from the one who is liable to pay in the first place,i.e.the owner of the goods.

Sec 70-Obligation of a person who enjoys the benefit of any non gratuitous act

When one person enjoys the benefit of any act done by other person lawfully and intending to do it non gratuitously then the former person who has benefited from it is liable to compensate the later for his act.For eg A delivered goods to C at his residence accidentally and C assuming that goods belong to him used such goods.Now C is liable to compensate A for using the goods.[1]

Sec 71 -Finder of the goods

When any person who finds the goods and knows that such goods belong to another person then he is responsible for the safety of the goods and to return it back to the owner of such goods. For eg A came to A shop owned by B and while purchasing forgot his Mobile in the shop.B came to know that A has forgotten his mobile.B is now responsible to keep the mobile safely with him and return it to A.

Sec 72-Liability of a person to whom payment is made,by mistake or under coercion

Where any person receives payment under some misunderstanding or coercion then he is liable to return such payment made to him by the other person.For eg Z and Y owe money to D ,jointly and Z pays the money to D owed by both of them.Y unaware of the transaction pays the amount to D again.Now D is liable to return the money to Y.


It can be said that Quasi contracts are not contracts as per Indian Contract 1872 but obligations imposed by law and only in certain situations.Quasi contracts only creates obligation so that there is no unjust enrichment on one party.

“The views of the authors are personal


[1] (http://bdlaws.minlaw.gov.bd/act-26/section-256.html, n.d.)

Tanmay P Bidkar
I have done my graduation in Bcom and currently, I am pursuing my keen interest in the field of Law. I am very curious and excited to learn, explore and pass on the knowledge. I am also interested in other activities and sports. I wish to contribute to this society in the best possible ways.