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  • Read the following passage and answer the questions. Chapter V of the Indian Contract Act avoids the term 'quasi-contract' but deals with the rights and liabiliti

Read the following passage and answer the questions.

Chapter V of the Indian Contract Act avoids the term 'quasi-contract' but deals with the rights and liabilities accruing from relations resembling those created by the contract. The principle of unjust enrichment finds recognition in the Indian Law by this Chapter V. Unjust enrichment has been defined as: “A benefit obtained from another, not intended as a gift and not legally justifiable, for which the beneficiary must make restitution or recompense.” A claim for unjust enrichment arises where there has been an “unjust retention of a benefit to the loss of another or the retention of money or property of another against the fundamental principles of justice or equity and good conscience.”

It is a general equitable principle that a person should not profit at another’s expense and therefore should make restitution for the reasonable value of any property, services, or other benefits that have been unfairly received and retained. The Law Commission of India considered that the provisions made in Sections 68-72 are inadequate. English law of quasi-contract or restitution is to be made applicable in India in respect of cases that fall outside Chapter V of the Indian Contract Act. 

Like contract and tort, there must be a law for the restoration of benefits on grounds of unjust enrichment. There are many circumstances in which a defendant may find himself in possession of a benefit which injustice, he should restore to the plaintiff. Obvious examples are where the plaintiff has himself conferred the benefit on the defendant through mistake or compulsion. To allow the defendant to retain such a benefit would result in his being unjustly enriched at the plaintiff's expense and this, subject to certain defined limits, the law will not allow. Unjust enrichment is simply the name that is commonly given to the principle of justice which the law recognizes and gives effect to in a wide variety of claims of this kind.

Question: The central idea of the quasi-contracts is based on the principle of which of the following?

 

Option: 1

Restitution

 


Option: 2

Seizing benefits


Option: 3

Prohibition of non-contractual transactions


Option: 4

Penalizing the unjust people


Answers (1)

best_answer

The principle of restitution is the central idea of the given paragraph. The courts seek to recover compensation for which the claimant is the rightful owner. Compensation can be in cash or some kind or form of service but generally, it is monetary relief. It is pertinent to prove that the good or service in question was received unjustly, unlawfully, fraudulently, or in a morally wrong.

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jitender.kumar

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