Question:
Under Section 70 of the Indian Contract Act, 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. This principle is known as:
Under Section 70 of the Indian Contract Act, 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. This principle is known as:
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Quantum meruit allows compensation for work done or goods delivered, even in the absence of a formal contract.
Updated On: Oct 31, 2025
- A contract of Uberrimae fidei
- Implied Agency
- Quantum meruit
- De nova contract
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The Correct Option is C
Solution and Explanation
Step 1: Understanding Section 70 of the Indian Contract Act.
Section 70 of the Indian Contract Act refers to the principle of "Quantum meruit," where a person who provides a benefit or delivers something to another person (without a formal agreement) is entitled to compensation for the value of the benefit provided.
Step 2: Explanation of the options.
- (a) A contract of Uberrimae fidei: Refers to contracts of utmost good faith, like insurance contracts, but not relevant here.
- (b) Implied Agency: Refers to actions performed on behalf of another person without a formal contract of agency.
- (c) Quantum meruit: This is correct, as it applies when one party receives a benefit from another without a formal agreement and must compensate for it.
- (d) De nova contract: Refers to a completely new contract, not applicable here.
Step 3: Conclusion.
Thus, the correct answer is (c) Quantum meruit.
Section 70 of the Indian Contract Act refers to the principle of "Quantum meruit," where a person who provides a benefit or delivers something to another person (without a formal agreement) is entitled to compensation for the value of the benefit provided.
Step 2: Explanation of the options.
- (a) A contract of Uberrimae fidei: Refers to contracts of utmost good faith, like insurance contracts, but not relevant here.
- (b) Implied Agency: Refers to actions performed on behalf of another person without a formal contract of agency.
- (c) Quantum meruit: This is correct, as it applies when one party receives a benefit from another without a formal agreement and must compensate for it.
- (d) De nova contract: Refers to a completely new contract, not applicable here.
Step 3: Conclusion.
Thus, the correct answer is (c) Quantum meruit.
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