Section 70 of Indian Contract Act
1. Text of Section 70
Section 70:
“Where a person lawfully does something for another person, or delivers something to him, not intending to do so gratuitously, and the other person enjoys the benefit, the latter is bound to compensate the former.”
2. Meaning
Section 70 deals with obligation to make restitution when a person receives a benefit without a contract.
It ensures that no one is unjustly enriched at the expense of another.
Even in the absence of a contract, the law imposes a legal obligation to pay.
3. Essential Features of Section 70
Lawful Act:
The act or delivery of goods/services must be lawful.
Illegal acts do not give rise to compensation.
Done for Another Person:
The service or benefit must be provided for someone else, not for personal use.
Expectation of Payment:
The person performing the act does not intend it to be gratuitous (i.e., done without expectation of compensation).
Benefit Received:
The person receiving the benefit actually enjoys it.
Obligation to Compensate:
The person enjoying the benefit must compensate the provider, failing which it would be unjust enrichment.
4. Examples
Delivery by Mistake:
A delivers goods to B by mistake. B enjoys them. B must pay A for their value.
Work Done Without Contract:
A builds a wall on B’s land, thinking it is for his benefit. If B accepts the wall, he must compensate A.
Services Rendered:
A provides legal services to B at B’s request, without a formal contract. B must pay reasonable fees.
5. Case Laws Related to Section 70
Chinnaya vs Ramayya (1882) 7 Mad 98
Partial performance of a contract led to payment on quantum meruit under Section 70.
P. N. Bhagwati vs Union of India
Services rendered without formal contract can be compensated to prevent unjust enrichment.
Hind Construction vs State of Kerala (AIR 1980 Ker 45)
Work done under terminated contract was payable on Section 70 principles.
6. Relation to Quantum Meruit
Quantum Meruit = Payment for work done or services rendered.
Section 70 = Legal basis for such payment even in the absence of a contract, preventing unjust enrichment.
In short: Section 70 is the foundation of restitution and quantum meruit claims in Indian law.
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