List of top Legal Studies Questions on Laws of Contract asked in Telangana State Law Common Entrance Test

In classical common law jurisprudence, quasi contracts emerge not from *consensus ad idem*, but as legal fictions to prevent unjust enrichment. Rooted in the doctrine of *quantum meruit* and codified in Sections 68 to 72 of the Indian Contract Act, 1872, quasi contracts exemplify the principle of restitution. These are *sui generis* obligations, distinct from tort and contract. Unlike express or implied contracts, quasi contracts do not stem from actual agreement but are enforced on the basis of constructive obligations. Courts invoke this doctrine when one party, without any contractual intent, is conferred a benefit that it would be inequitable to retain. The maxim *nemo debet locupletari ex aliena jactura*, serves as the jurisprudential bedrock of this doctrine. For instance, under Section 70, a person who lawfully does something for another without intending it as a gift, and the other person enjoys the benefit, is entitled to compensation. Similarly, Section 72 contemplates restitution for payments made under mistake or coercion. Importantly, these provisions are *sui generis*, standing apart from traditional contractual frameworks.
While quasi contractual liability is strict and non-volitional, it is not punitive. The underlying aim is to achieve equitable realignment of benefits where conventional legal remedies may falter. These principles underscore the idea that law must not merely follow rigid formalism but must reflect evolving moral imperatives. In this light, quasi contracts act as instruments for ensuring that fairness prevails where technical legal constructs fall short. The Indian legal system, in particular, has robustly incorporated these equitable principles, affirming that legal rights are not solely derivative of formal assent, but also from ethical imperatives.

Directions: Read the following passage and answer the questions given below:

A contract is an agreement enforceable at law, made between two or more persons, by which rights are acquired by one or more to acts or forbearances on the part of the other or others. A contract is an agreement creating and defining obligations between the parties. The Indian Contract Act, 1872 lays down general principles relating to formation and enforceability of contracts; rules governing the provisions of an agreement and offer; the various types of contracts including those of indemnity and guarantee, bailment and pledge and agency. It also contains provisions pertaining to breach of a contract. The Indian Contract Act has defined ”Contract” in Section 2(h) as ”an agreement enforceable by law”. This definition indicates that a contract essentially consists of two distinct parts. First, there must be an agreement. Secondly, such an agreement must be enforceable by law. An agreement gives birth to a contract. As per Section 2(e) of the Indian Contract Act, every promise and every set of promises, forming the consideration for each other, is an agreement. Agreements relating to social matters in which the idea of bargain is absentand there is no intention to create legal relations are not contracts. To form a valid contract there must be: an agreement based on the
genuine consent of the parties, supported by a lawful consideration made for a lawful object, and between the competent parties. One
of the early steps in the formation of a contract lies in arriving at an agreement between the contracting parties by means of an offer and acceptance. When one party (the offeror) makes a definite proposal to another party (the offeree) and the offeree accepts it in its entirety and without any qualification, there is a meeting of the minds of the parties and a contract comes into being, assuming that all other elements are also present.

What are the various types of contracts in the Indian Contract Act?

A contract is an agreement enforceable at law, made between two or more persons, by which rights are acquired by one or more to acts or forbearances on the part of the other or others. A contract is an agreement creating and defining obligations between the parties. The Indian Contract Act, 1872 lays down general principles relat- ing to formation and enforceability of contracts; rules governing the provisions of an agreement and offer; the various types of contracts including those of indemnity and guarantee, bailment and pledge and agency. It also contains provisions pertaining to breach of a contract. The Indian Contract Act has defined ”Contract” in Section 2(h) as ”an agreement enforceable by law”. This definition indicates that a contract essentially consists of two distinct parts. First, there must be an agreement. Secondly, such an agreement must be enforceable by law. An agreement gives birth to a contract. As per Section 2(e) of the Indian Contract Act, every promise and every set of promises, forming the consideration for each other, is an agreement. Agree- ments relating to social matters in which the idea of bargain is absent and there is no intention to create legal relations are not contracts. To form a valid contract there must be: an agreement based on the genuine consent of the parties, supported by a lawful consideration made for a lawful object, and between the competent parties. One of the early steps in the formation of a contract lies in arriving at an agreement between the contracting parties by means of an offer and acceptance. When one party (the offeror) makes a definite proposal to another party (the offeree) and the offeree accepts it in its entirety and without any qualification, there is a meeting of the minds of the parties and a contract comes into being, assuming that all other ele- ments are also present.