Introduction

Section 70 of the Indian Contract Act, 1872 (ICA) deals with the liability to pay for non-gratuitous act. This Section is one of the five obligations which are known as quasi contracts. Quasi Contracts are contained in Sections 68 to 72 of ICA and these obligations are based on the principle that law as well as justice should try to prevent unjust enrichment.

Section 70 of ICA

• This Section deals with the obligation of a person enjoying the benefit of non-gratuitous act.
• It states that 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.
• Illustration:
  • A, a tradesman, leaves goods at B’s house by mistake. B treats the goods as his own. He is bound to pay A for them.

Application of Section 70 of ICA

• The following three conditions must be satisfied for the application of Section 70 of ICA:
  • A person should lawfully do something for another person or deliver something to him.
  • In doing the said thing or delivering the said thing he must not intend to act gratuitously.
  • The other person for whom something is done or to whom something is delivered must enjoy the benefit thereof.

Purpose of Section 70 of ICA

• The purpose of this Section is to assure the payment to a person who has done something for another voluntarily and yet with the thought of being paid.
• It does not encourage officious interference in the affairs of others.

Essential Elements of Section 70 of ICA

• Under this Section, the person doing something for another cannot sue for specific performance, nor ask for damages for breach as there is no contract.
• The liability under this Section arises where a person voluntarily accepts the things or enjoys the work done.
• The Court will not compel a person to pay for services which have been thrust upon him against his will.
• It is necessary that services should have been rendered without any request.
• The services should have been rendered lawfully.
• The defendant must have derived a direct benefit from the payment or services.

Case Law

• In the case of W.B v. B.K Mondal & Sons (1962), it was held that Section 70 of ICA applies even if there is a non-compliance of constitutional requirement of contracting with the State.