With reference to provisions of the Indian Contract Act, 1872 define the following terms: (i) Quasi-contracts and its salient features (ii)…

(i) Quasi- Contracts: A quasi -contract is not an actual contract, but it resembles a contract. It is created by law under certain circumstances. The law creates and enforces legal rights and obligations when no real contract exists. Such obligations are known as quasi -contracts . In other words, it is a contract in which there is no intention on part of either party to make a contract but law imposes a contract upon the parties. Salient features of quasi contracts: In the first place, such a right is always a right to money and generally, though not always, to a liquidated sum of money.Secondly, it does not arise from any agreement of the parties concerned, but is imposed by the law; andThirdly, it is a right which is available not against all the world, but against a particular person or persons only, so that in this respect it resembles a contractual right. (ii) Responsibility of finder of goods As per section 71 of the Indian Contract Act, 1872, ‘A person who finds goods belonging to another and takes them into his custody is subject to same responsibility as if he were a bailee’. Thus, a finder of lost goods has: to take proper care of the property as man of ordinary prudence would takeno right to appropriate the goods andto restore the goods if the owner is found. OR / Alternative Solution: (i) Pledge by mercantile agent: According to section 178 of the Indian Contract Act, 1872, a mercantile agent, who is in the possession of goods or document of title, with the consent of owner, can pledge them while acting in the ordinary course of business as a Mercantile Agent. Such Pledge shall be valid as if were made with the authority of the owner of goods. Provided, Pawnee acted in good faith and had no notice that Pawnor has no authority to pledge. (ii) Pledge by person in possession under voidable contract According to section 178A of the Indian Contract Act, 1872, When the pawnor has obtained possession of the goods pledged by him under a contract voidable under section 19 or section 19A (contracts where consent has been obtained by fraud, coercion, misrepresentation, undue influence), but the contract has not been rescinded at the time of the pledge, the pawnee acquires a good title to the goods, provided he acts in good faith and without notice of the pawnor’s defect of title.