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CA Foundation · Business Laws · The Indian Contract Act, 1872

Kiran, a shopkeeper in Jaipur, by mistake delivers goods worth Rs 8,000 meant for Lalit to Mohan, who is a stranger with a similar address. Mohan consumes the goods knowing they were not meant for him. Which provision applies?

Mohan must pay for the goods or return them. A person to whom goods are delivered by mistake and who enjoys the benefit is bound by law to compensate the supplier, even without any agreement. This is a quasi-contractual obligation, not one based on consent.

  1. AMohan must pay for or return the goods, as a person who enjoys a non-gratuitous benefit by mistake is liableCorrect
  2. BMohan is not liable because there was no agreement between him and Kiran
  3. CMohan is liable only if Kiran files a criminal complaint
  4. DMohan is liable only for half the value as a penalty

Explanation

Under quasi-contract principles, a person to whom goods are delivered by mistake and who enjoys them must pay for them or return them. Absence of an agreement does not matter, since the obligation arises by law, not by consent. Hence the 'no agreement' option is wrong.

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