Sometimes, we benefit from someone’s action or effort, even if we didn’t ask for it. But does that mean we can enjoy it without any responsibility? Section 70 of the Indian Contract Act answers this question. It talks about situations where a person does something for someone else without intending to do it for free, and the other person enjoys or uses that benefit. In such cases, the person receiving the benefit must either pay for it or return the goods.
Understanding the provision
Section 70 states that if someone lawfully does something or delivers something to another person, not as a gift, and the other person benefits from it, then the receiver is obligated to compensate the person who provided the benefit. This section creates what is known as a quasi-contract, where there’s no formal agreement, but the law treats it like a contract to prevent unfairness.
You can also read the Judgement of Kesavananda Bharati v. State of Kerala Case.
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Doctrine of Quantum Meruit
This section is closely related to the idea of "quantum meruit", which means “as much as is deserved.” It allows a person to claim reasonable payment for services or goods provided if the other party accepted and benefited from them, even without a formal contract. Courts in India have applied this principle in several cases where one party started performing their part of a contract, but further performance was made impossible or unnecessary by the other party.
Key Conditions for Applying Section 70
For Section 70 to apply, the following conditions must be met:
- The goods or services must be delivered or done lawfully.
- The person doing the act must not intend to do it for free.
- The other person must have enjoyed the benefit.
Judicial overview of the provision
In Bemasena Rao vs. Narayanarao, the court held that if a person pays off someone else's debt thinking the property is his own, he can still recover the money from the real owner.
In Linga Venkanna Pantulu vs. Konaseema Cooperative Bank, the court ruled that an employee who continued working due to a court order even after retirement should not be denied payment for services actually rendered. It was held that Section 70 applies because the services were lawfully rendered and accepted.
Conclusion
Section 70 acts as a safeguard against unjust enrichment. It ensures that people who receive a benefit from someone else’s lawful, non-gratuitous act must compensate for it. Even without a formal contract, the law will step in to ensure fairness. This principle has practical importance in everyday dealings and continues to guide courts in disputes over benefits received without formal agreements.
