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What is the basis of the obligations that Chapter V of the Indian Contract Act, 1872 treats as "certain relations resembling those created by contract"?

Question and options

What is the basis of the obligations that Chapter V of the Indian Contract Act, 1872 treats as "certain relations resembling those created by contract"?

  1. They are imposed by law, without any agreement between the parties

  2. They rest on an agreement implied from the parties' conduct

  3. They are civil wrongs, enforced as torts

  4. They arise from a promise that fails for want of consideration

Answer and explanation

Correct answer: A - They are imposed by law, without any agreement between the parties

Chapter V (sections 68 to 72) of the Indian Contract Act, 1872 deals with quasi-contracts: obligations the law imposes, on the principle of unjust enrichment, though the parties made no agreement, such as the duty to repay money paid by mistake under section 72. They differ from contracts implied from conduct, which rest on actual agreement, and they are not remedies for torts.

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