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Sections 69 to 72 (Contract Act)

Sections 69 to 72 (Contract Act)
Sections 69 to 72 (Contract Act)


Payment by an Interested Person (Sec. 69)

Section 69 of the law stipulates that when an individual is interested in the payment of money obligated by another under the law, and consequently makes such payment, they are entitled to reimbursement from the obligated party.


Consider a scenario where B holds land leased from A, the zamindar. Due to A's failure to pay the government revenue, B's lease faces annulment as the land is advertised for sale.

In order to prevent this and safeguard their lease, B pays the outstanding sum to the government.

A, being legally bound to pay, must reimburse B for the payment made to prevent the sale and annulment of the lease.

Conditions of Liability under Sec. 69

  • The plaintiff must have a vested interest in making the payment, though not necessarily a legal proprietary interest.

  • The plaintiff must not be obligated to make the payment themselves but does so in order to safeguard their own interests.

  • The defendant must be legally compelled, whether by contract or tort, to make the payment.

  • The payment must be made to another person, not to oneself.

Liability to Pay for Non-Gratuitous Acts (Sec. 70)

Section 70 outlines conditions for liability when one person lawfully performs an act or provides something to another without intending it to be gratuitous, and the other party benefits from it.


  • If goods are left at someone's house by mistake and they treat them as their own, they are liable to pay for them.

  • However, if someone saves another's property from fire without intent to be compensated, they cannot claim payment.

Nature of Liability under Sec. 70

Sec. 70 doesn't establish a contractual relationship but ensures payment for voluntary acts or goods provided. The person performing the act must have anticipated payment from the outset.

The recipient is only obligated to pay if they voluntarily accepted the goods or services. Sec. 70 doesn't encourage unwanted interference in others' affairs.

Finder of Goods (Sec. 71)

According to Sec. 71, a person who finds goods belonging to another and takes custody of them is held to the same responsibility as a bailee.

Mistake or Coercion (Sec. 72)

Sec. 72 mandates that a person who receives money or goods by mistake or coercion must repay or return them.


  • If two parties jointly owe money to a third party and one pays the full amount without the other's knowledge, the paying party is entitled to reimbursement.

  • If a railway company charges an illegal fee for delivering goods and the consignee pays it to obtain the goods, they can reclaim the excessive portion.

Sec. 72 addresses unjust enrichment and allows for recovery of payments made under mistake or coercion, even if due to a misinterpretation of law. However, not every mistaken payment is recoverable, and the party seeking restitution must prove they suffered loss or injury.

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