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A quasi-contract is based on the principle that

Question and options

A quasi-contract is based on the principle that
  1. No one shall be allowed to retain unjust benefit at the expense of another
  2. No one shall be allowed to breach a contract without compensating the other party
  3. Words given shall always be honoured
  4. Gentlemen should honor their obligations

Answer and explanation

Correct answer: A - No one shall be allowed to retain unjust benefit at the expense of another
Quasi-contracts (sections 68-72 of the Indian Contract Act, 1872) rest on the principle of unjust enrichment: no one may retain an unjust benefit at the expense of another, even though no contract exists. Compensation for breaching a contract is the rule of damages under section 73, which presupposes a contract, so it is not the basis of a quasi-contract.

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