Under the Indian Contract Act, compensation for a non-gratuitous act is allowed under Section 70. This section applies when a person lawfully does something for another person, or delivers goods to them, without intending to do so as a gift, but the other person benefits from it.
Section 70 states that in such cases, the person who provided the benefit is entitled to be compensated for the work or benefit conferred. This is applicable in situations where one party renders services or delivers goods to another, even if there was no formal agreement.
Let’s review the options:
- Option (1): Section 68 deals with compensation for goods or services rendered in the absence of a contract, but it is more related to situations where a person delivers goods or services under the circumstances of necessity.
- Option (2): Section 69 deals with compensation for work done without a contract in the absence of a formal agreement.
- Option (3): Section 72 pertains to the return of money or goods paid or delivered by mistake.
- Option (4): Section 70 explicitly covers the compensation for non-gratuitous acts where a person is entitled to payment for the benefit conferred.
Thus, the correct answer is Option (4).
Quasi contracts _________
Quasi contracts are legal obligations imposed by the court, not based on an agreement between the parties involved. These contracts arise when one party is unjustly enriched at the expense of another, and the court intervenes to prevent that enrichment.
Quasi contracts do not involve mutual consent or formal agreements. Instead, they are typically imposed by the court to ensure fairness and prevent unjust enrichment in the absence of a contract.
Let’s review the options:
- Option (1): "Are formed by verbal agreement" – Incorrect. Quasi contracts are not formed through verbal agreements, but through legal intervention to prevent unjust enrichment.
- Option (2): "Rely on offer and acceptance of the parties" – Incorrect. Quasi contracts do not rely on offer and acceptance; they are imposed by the court in the absence of such formal agreements.
- Option (3): "Arise from judicial intervention absent consent" – Correct. Quasi contracts arise when a court imposes an obligation on a party to prevent unjust enrichment, even though there was no formal agreement or consent.
- Option (4): "Develop from formal written agreement" – Incorrect. Quasi contracts do not develop from written agreements but from judicial intervention to ensure fairness.
Thus, the correct answer is Option (3).
Match List-I with List-II\[\begin{array}{|c|c|} \hline \textbf{List-1} & \textbf{List-II} \\ \hline \text{(A) Hadley v. Baxendale} & \text{(1) Undue Influence} \\ \hline \text{(B) Henkel v. Pape} & \text{(II) Coercion} \\ \hline \text{(C) Manu Singh v. Umadat Pandey} & \text{(III) Quantum of Damages} \\ \hline \text{(D) Chikkam Amiraju v. Seshamma} & \text{(IV) Mistake} \\ \hline \end{array}\]