Liability to pay for non-gratuitous acts — MCQs

All questions with answers and explanations

Read the full set here, or use the practice card above to test yourself one question at a time.

1. Section 70 gives a remedy when a lawful act is done for another person, provided:

   • It was intended as a gift
   • It was not intended gratuitously and the benefit was enjoyed (correct answer)
   • No benefit was ever received
   • The act was illegal

   Explanation. Section 70 requires the act to be non-gratuitous and the other person to have knowingly enjoyed its benefit.

2. In illustration (b) to Section 70, A saves B's property from fire. A is entitled to compensation:

   • Always, since B benefited
   • Never, under any circumstances
   • Only if he did not intend to act gratuitously (correct answer)
   • Only if B is a relative

   Explanation. If circumstances show A intended to act gratuitously, no compensation is due, regardless of the benefit B received.

3. In State of West Bengal v. B.K. Mondal & Sons, the Supreme Court held that Section 70 applies:

   • Only where a valid contract exists
   • Even where no valid contract was ever formed (correct answer)
   • Only to government contracts
   • Only where payment was made in advance

   Explanation. The Court held Section 70 does not require any contract at all — it applies precisely where no valid contract exists but a benefit was accepted.

4. The three-part test under Section 70 requires:

   • A written agreement, consideration, and free consent
   • A lawful act, non-gratuitous intention, and benefit enjoyed (correct answer)
   • Registration, stamp duty, and witnesses
   • Offer, acceptance, and capacity

   Explanation. The three conditions are a lawful act or delivery, not intended gratuitously, and the benefit knowingly enjoyed by the other party.

5. A gratuitous act, for Section 70 purposes, is one:

   • Done for payment already received
   • Done voluntarily with no expectation of payment (correct answer)
   • Done under a written contract
   • Done by a government employee

   Explanation. A gratuitous act is done as a favour or gift, with no expectation of compensation, and gives rise to no Section 70 claim.

6. In illustration (a) to Section 70, a tradesman leaves goods at B's house by mistake, and B treats them as his own. B is:

   • Free to keep the goods without paying
   • Bound to pay the tradesman for them (correct answer)
   • Entitled to sue the tradesman
   • Required to return only half the value

   Explanation. Since B knowingly treated and used the goods as his own, he is bound to pay the tradesman for them under Section 70.