Principle: Quasi-contracts under Section 70 of the Indian Contract Act require that a person lawfully do something for another, not intending to do so gratuitously, and the other enjoys the benefit.
Facts: A tradesman leaves goods at B house by mistake. B treats the goods as his own and consumes them. Can A recover compensation from B?

Answer and explanation

Correct answer: D. Yes, B is bound to pay compensation under Section 70 as he enjoyed the benefit

  1. Step 1: Refer to Section 70 of the Indian Contract Act 1872 regarding non-gratuitous acts.
  2. Step 2: Where a person lawfully delivers goods to another, not intending to do so gratuitously, and the other person enjoys the benefit, the latter is bound to make compensation.
  3. Step 3: B consumed the goods and must compensate A under quasi-contract.
Answer
Yes, B is bound to pay compensation under Section 70 as he enjoyed the benefit.

Practise more Contract Law: Specific Performance, Quasi-Contracts and Damages.

Free questions with an explanation for every one, and full timed CLAT UG mock tests.