What is Section 72 of the quasi contract?
Asked by: Dr. Rodolfo Abbott V | Last update: February 4, 2026Score: 4.4/5 (52 votes)
Section 72 of the Indian Contract Act, 1872, is a quasi-contract provision that mandates a person who receives money or goods by mistake or under coercion must repay or return them, preventing unjust enrichment and ensuring fairness where no formal contract exists, focusing on restoring the rightful owner's property.
What is Section 72 of the contract?
72. Liability of person to whom money is paid, or thing delivered, by mistake or under coercion. 73. Compensation for loss or damage caused by breach of contract.
What is a quasi-contract in simple terms?
The easiest quasi contract definition is “a legally binding substitute for an initial contract, which outlines exactly how one party is going to pay the other back for obtaining unjust enrichment”. (Don't worry, we'll define “unjust enrichment” shortly). Not every situation calls for or requires one of these contracts.
What is quasi-contract under section 68 to 72?
Quasi contracts are contracts created by courts to avoid unjust enrichment where no agreement exists between parties. The document discusses: 1) Quasi contracts exist where a court orders payment for goods/services to prevent unjust enrichment, unlike normal contracts which require agreement.
Is a quasi-contract legally binding?
The quasi-contract is designed to prevent either party from being unjustly enriched. This is not a legally binding document, but a legal method to impose equity in a dispute used when a contract should have been formed.
Quasi Contract | Section 68-72 | Indian Contract Act | Examples | Hindi Explanation
Who benefits from quasi-contracts?
While recognizing the doctrine of quasi contract, the Court held that “the essential elements of a quasi-contract are a benefit conferred upon defendant by plaintiff, appreciation by defendant of such benefit, and acceptance and retention by defendant of such benefit under such circumstances that it would be ...
What are the two keys to a quasi contract?
Legal Basis and Key Elements of a Quasi Contract
Knowledge of Benefit: The defendant must have knowledge or awareness of the benefit. Acceptance and Retention: The defendant must accept or retain the benefit under circumstances making it unjust not to pay for it.
What are the two kinds of quasi contracts?
What are the kinds of quasi-contracts? Quasi-contracts may be classified as nominate quasi-contracts and innominate quasi-contracts. Nominate quasi-contracts refer to Negotiorum Gestio and Solutio Indebitii, while innominate contracts refer to those that are covered by definition of quasi-contract.
How to prove a quasi-contract?
Acceptance and benefit by the Receiver: A quasi contract is a valid contract only if one party benefits from the other's services or actions. The receiver must have accepted and derived a benefit from the goods or services, even without an initial agreement.
What are the limitations of quasi contracts?
Quasi-contracts are limited in scope and are only applicable in specific situations where unjust enrichment has occurred without a formal agreement. They cannot be used to remedy every situation where one party benefits at another's expense, particularly if a formal contract exists that governs the relationship.
What are the four types of contracts?
While many types exist, four common contract classifications include Bilateral (mutual promises), Unilateral (promise for an act), Express (explicit terms), and Implied (inferred from actions), often categorized by the exchange, formation, or performance status of the agreement, with others focusing on payment (Fixed-Price) or enforceability (Voidable).
What does quasi mean in law?
The word quasi is Latin for “as if” meaning, almost alike but not perfectly alike. In law, it is used as a prefix or an adjective to inform some measure of similarity with a critical difference. A quasi-item is not an accurate example of the item, but it is close to the item minus some critical elements of the item.
What is a quasi-contract claim?
The United States itself generally is immune from so-called "quasi-contract" claims. Quasi-contracts, also known as contracts "implied in law," "impose duties that are deemed to arise by operation of law, in order to prevent an injustice." Lumbermens Mut. Cas.
What makes a contract legally binding?
To make a contract legally binding, it needs to include several key elements: Offer and acceptance — One party needs to offer something (money, services, rights, etc.), and the other party needs to accept the offer. Consideration — The benefit that both parties receive.
What is Section 72 of the company law?
(1) Every holder of securities of a company may, at any time, nominate, in the prescribed manner, any person to whom his securities shall vest in the event of his death.
What is quasi contract and bailment?
Key Takeaways. A quasi contract is a court-imposed legal obligation to prevent one party from being unjustly enriched at the expense of another. Judges create quasi contracts to correct situations where one party benefits unfairly without an existing contract.
Are quasi contracts legally binding?
The answer is yes, quasi-contracts are generally considered legally enforceable. Courts will enforce quasi-contracts to prevent unjust enrichment and ensure fairness between parties.
What are the rules of a quasi-contract?
A quasi-contract requires that unjust enrichment occurred and that the recipient was aware that it occurred, it requires proof of unjust enrichment, and the person in question providing the service or good must have been expecting payment.
What are the three things a plaintiff must prove to win a quasi-contract lawsuit?
What must a plaintiff show to be awarded a quasi-contract in a lawsuit? The defendant expected to be paid. The plaintiff received some benefit. The defendant agreed to compensate the plaintiff for the benefit received.
What is Section 68 to 72 of the quasi-contract?
Sections 68-72 provide a vital framework for addressing obligations resembling contracts in the absence of explicit agreements. Based on the doctrine of unjust enrichment, these provisions ensure fairness and prevent undue benefit.
Is a written agreement needed for quasi-contract?
While both involve obligations without a formal agreement, quasi contracts are specifically imposed by courts to prevent injustice. Some believe that a quasi contract requires a written agreement. In reality, it arises solely from the circumstances of the case.
What is the landmark case of quasi-contract?
Moses v. Macferlan (1760) is a landmark English case that laid the foundation for the concept of quasi-contracts, also known as implied contracts or contracts implied in law.
What is the remedy for promissory estoppel?
The remedy for promissory estoppel is whatever is necessary to prevent the detriment to the offeree. If it is possible for the parties to resume their positions before the offeree acted in reliance on the offeror's promise, then they may be able to resume that position.
What does quasi mean in legal terms?
In law, quasi (from Latin for "as if") means "almost," "resembling," or "partially," used as a prefix for legal concepts that aren't exactly what they seem but are treated "as if" they were for practical or legal purposes, like a quasi-contract (an obligation created by law, not agreement) or a quasi-judicial body (an entity with judicial-like functions). It signifies a close similarity but with a critical difference or lack of full legal status, often arising from operation of law rather than intent.
Is a quasi-contract a void contract?
Void agreements are unenforceable while quasi contracts prevent unjust enrichment through court-imposed remedies. Understanding these concepts and their judicial interpretations is crucial for legal practitioners and those entering contracts.