Ch. 12 Quasi-Contracts

Multiple Choice Questions:

1. A quasi-contract —

(a) is a contract. (b) is an agreement.

(c) creates only a legal obligation. (d) is none of these.

Ans: (c) creates only a legal obligation.

2. When an agreement is discovered to be void, any person who has received any advantage under such agreement —

(a) is bound to restore it. (b) is not bound to restore it.

(c) is not bound to return it. (d) may retain it.

Ans: (a) is bound to restore it.

3. A minor has been supplied necessaries on credit —

(a) He is not liable. (b) He is personally liable. (c) His estate is liable. (d) He is not personally liable.

Ans: (c) His estate is liable.

4. A person who finds good belonging to another and takes them into his custody, is subject to the same responsibility as a —

(a) bailee. (b) true owner. (c) bailor. (d) pledgee.

Ans: (a) bailee.

5. A finder of lost goods is a —

(a) bailor. (b) bailee. (c) true owner. (d) thief.

Ans: (b) bailee.

6. Quantum meruit means —

(a) a non-gratuitous promise. (b) an implied promise.

(c) as much as is earned. (d) as much as is paid.

Ans: (c) as much as is earned.

[“Quantum meruit” literally means “as much as earned” or “as much as is merited”. When a person has done some work under a contract, and the other party repudiates the contract, or some event happens which makes the further performance of the contract impossible, then the party who has performed the work can claim remuneration for the work he has already done.]

True or False Questions:

1. Strictly speaking, a quasi-contract is not a contract at all. It is a creation of law. [True]

2. If a minor is supplied by another with necessaries, he is personally liable to pay. [False]

3. In an indivisible contract, the party not in default has enjoyed the benefit of the part performance. The party in default may sue on quantum meruit. [True]

4. A finder of lost goods can hold the goods against the whole world except the true owner. [True]

5. Any person who voluntarily makes a payment on behalf of another, can recover it. [False]

6. A person delivers some goods to another, not intending to do so gratuitously, and such other person enjoys the benefit thereof. The latter is not bound to make compensation to the former in respect of goods delivered. [False]

7. A person to whom money has been paid by mistake or under coercion must repay or return it to the person who paid it by mistake. [True]