What is Section 71 of the contract Act 1950?

Asked by: Dexter Dietrich  |  Last update: February 1, 2026
Score: 4.1/5 (8 votes)

Section 71 of Malaysia's Contracts Act 1950 deals with the obligation of a person enjoying the benefit of a non-gratuitous act, stating that if someone lawfully does something or delivers something for another person, not intending it to be free, and the other person benefits, the recipient must compensate the doer or return the thing. It essentially creates a quasi-contractual duty to prevent unjust enrichment, similar to finding goods and treating them as your own, requiring payment to the rightful owner.

What is Section 71 of the contract Act?

71. Where a person lawfully does anything for another person, or delivers anything to him, not intending to do so gratuitously, and such other person enjoys the benefit thereof, the latter is bound to make compensation to the former in respect of, or to restore, the thing so done or delivered.”

What is Section 71 of the Restatement of contracts?

​ Restatement (Second) of Contracts §71: (1) To constitute consideration, a performance or a return promise must be bargained for. (2) A performance or return promise is bargained for if it is sought by the promisor in exchange for his promise and is given by the promisee in exchange for that promise.

Can you claim quantum meruit in court?

A plaintiff bringing a breach of contract claim may plead quantum meruit in the alternative, along with other equitable claims. Court Opinions. That way, if the court finds no valid contract existed, a plaintiff can still recover under quantum meruit.

What are the 7 requirements of a valid contract?

The seven essential elements for a valid contract are Offer, Acceptance, Consideration, Capacity, Legality, Mutual Assent (Meeting of the Minds), and Certainty (Clear Terms), ensuring all parties understand the agreement, have the legal ability to enter it, and the purpose is lawful, with a clear exchange of value for enforceable promises.
 

Quasi Contract | Of certain relations resembling those created by contract | Sec-71 (Contract Act)

21 related questions found

What voids a contract?

The contract can also be considered void if an unlawful object or consideration is involved in the agreement. This can include the promise of sex, an illicit substance, or anything else causing one or both parties to break the law.

What are the 6 essential elements of a legally binding contract?

Generally, where it is proven that an agreement was made, the agreement will be deemed as a legally binding contract if the six elements to a contract are present. The six elements are Offer, Acceptance, Consideration, Intention, Capacity, and Legality.

What are the 5 remedies for breach of contract?

In short, the potential remedies for a breach of contract claim can include compensatory damages, specific performance, injunction, rescission, liquidated damages, and nominal damages. If someone breaches a contract with you or your company, you deserve justice.

How to prove unjust enrichment?

Filing an Unjust Enrichment Claim

The plaintiff must demonstrate that the defendant received a benefit, that this benefit came at the plaintiff's expense, and that the circumstances around this benefit are unjust.

What is the reasonable value of services?

Reasonable value of services is often determined by looking at the standard rates for similar services in the relevant market. In cases where no contract exists, courts may use reasonable value as a basis to prevent unjust enrichment and ensure fair compensation.

What is the Section 71 Act?

Where anything which is an offence is made up of parts, any of which parts is itself an offence, the offender shall not be punished with the punishment of more than one of such his offences, unless it be so expressly provided.

What is Section 71 of the quasi contract?

71). 'A person who finds goods belonging to another and takes them into his custody, is subject to the same responsibility as a bailee. ' Thus an agreement is also implied by law between the owner and finder of the goods and the latter is deemed to be a bailee.

What is the 71 requirement of exchange?

• § 71: Requirement of Exchange; Types of Exchange

o (1) To constitute consideration, a performance or a return promise must be bargained for. o (2) A performance or return promise is bargained for if it is sought by the promisor in exchange for his promise and is given by the promisee in exchange for that promise.

What is a Section 71 charge?

71Creation of a charge over an interest in land

(b)has a legal or beneficial interest in land in Wales or England, the local authority may create a charge in its favour over the person's interest in the land to secure payment of that amount.

What is the remedy for restitution?

For the claimant to bring a claim for restitution, the defendant must have been unjustly enriched at the expense of the claimant. A restitutionary remedy seeks to reverse that unjust enrichment, by restoring the relevant benefit or enrichment to the claimant.

What are the 4 rules of contract law?

The four fundamental principles of contract law for a legally binding agreement are Offer, Acceptance, Consideration, and the Intention to Create Legal Relations, requiring a clear proposal, agreement to terms, an exchange of value, and a genuine purpose to be legally bound, respectively, for enforceability.
 

What evidence is needed to prove undue influence?

The Most Important Evidence in an Undue Influence Claim. Under California financial elder abuse law, you must prove four elements to establish undue influence: (1) vulnerability of the victim, (2) apparent authority of the wrongdoer, (3) actions and tactics of the wrongdoer, and (4) an inequitable result.

How hard is it to win a breach of contract lawsuit?

Winning a breach of contract lawsuit is challenging, requiring you to prove four key elements (valid contract, your performance, the other party's breach, and resulting damages) against potential defenses like lack of clarity or capacity, while also proving the defendant has money to pay and managing the stress, time, and cost of litigation, with most cases settling before trial anyway. 

What are some examples of unjust enrichment?

Unjust Enrichment occurs when one party unfairly benefits at another's expense, typically through a mistake, undue influence, or breach of contract. Examples include situations where services are partially completed but paid in full or where property is transferred in error.

Can you get punitive damages for breach of contract?

The majority of American jurisdictions do not allow punitive dam- ages for breach of contract unless the breach constitutes an independ- ent tort.

Can you claim damages for breach of contract without termination?

That way, the innocent party obtains a substituted performance of the contract - primarily and most often with a payment of damages. But then if the contract has not been terminated, the remedies of specific performance or an injunction may be available to the innocent party to prevent future breach of contract.

What is an injunction in a breach of contract?

This remedy is typically used when the subject matter of the contract is unique and cannot be easily replaced. In some cases, injunctive relief may be awarded as a legal remedy for breach of contract. This involves a court order that requires the breaching party to stop doing something or to perform a specific action.

What are the 3 C's of a contract?

The "3 Cs of a contract" usually refer to Character, Capacity, and Capital, used by surety bond underwriters to assess contractor risk, but can also mean Certainty, Commitment, and Consideration in basic contract formation, or even Contracts, Communication, and Client Documentation for A&E firms. The most common interpretation, especially in construction, focuses on the surety's evaluation of a contractor's integrity (Character), ability to perform (Capacity), and financial strength (Capital). 

What are common contract mistakes?

Common mistakes when drafting contractual terms include: Using vague or ambiguous language that can create multiple interpretations; Failing to specify important details such as payment terms, delivery schedules, or performance standards; or. Including contradictory or confusing provisions that create uncertainty.

What makes a contract unconscionable?

Unconscionability is a defense against the enforcement of a contract or portion of a contract. If a contract is unfair or oppressive to one party in a way that suggests abuses during its formation, a court may find it unconscionable and refuse to enforce it.