Section 70 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 70 deals with a situation where there is no contract but one person has done something for another, or delivered something to him, and the other has enjoyed the benefit. If the giver did not mean it as a gift, the receiver must pay compensation or return the thing. The phrase "quantum meruit" is how many readers search for this idea; the section itself does not use those words. If you have done work or delivered goods without a signed contract and need to claim, a legal notice can set out the claim.
Where a person lawfully does anything for another person, or delivers anything to him, not intending to do so gratuitously, and the other enjoys the benefit, the latter is bound to make compensation for it, or to restore the thing done or delivered. The giver must have acted lawfully and without intending a gift. The Act's illustrations: a tradesman who leaves goods at the wrong house, and a person who saves another's property from fire.
The text, limb by limb
"Where a person lawfully does anything for another person, or delivers anything to him, not intending to do so gratuitously, and such other person enjoys the benefit thereof, the latter is bound to make compensation to the former in respect of, or to restore, the thing so done or delivered."
The conditions, in order:
| Condition | What it means |
|---|---|
| A person lawfully does anything for another, or delivers anything to him | The act is lawful. It may be a service ("does anything") or a delivery of goods. |
| Not intending to do so gratuitously | The giver did not mean it as a gift. "Gratuitously" means without charge. |
| The other person enjoys the benefit | The receiver actually gets the benefit of what was done or delivered. |
| Consequence | The receiver is bound to make compensation for it, or to restore the thing. |
Notice what the section does not say. It does not require a contract. It does not require that the receiver asked for the thing. It does not set a method of calculating compensation. The expression "quantum meruit" is a Latin label that readers use for payment in proportion to the value of what was done; it is not in the text, and this article does not discuss any decisions about it.
A footnote to this section says that for suits by minors under section 70 in Presidency Small Cause Courts, the Presidency Small Cause Courts Act, 1882, section 32 should be seen.
The Act's illustrations
| Illustration | Facts | Result |
|---|---|---|
| (a) | A, a tradesman, leaves goods at B's house by mistake. B treats the goods as his own. | B is bound to pay A for them. |
| (b) | A saves B's property from fire. | A is not entitled to compensation from B if the circumstances show that he intended to act gratuitously. |
The two illustrations show each side of the test. In (a) the benefit is enjoyed (B treats the goods as his own) and the giver, though mistaken, did not intend a gift. In (b) the circumstances show an intention to act gratuitously, so there is no claim.
How the pieces fit together
- Lawful act. An unlawful act does not give a claim under this section.
- No intention to give for nothing. Intention is judged on the circumstances, as illustration (b) says ("if the circumstances show that he intended to act gratuitously").
- Enjoyment of the benefit. In illustration (a) B "treats the goods as his own". The section speaks of the other person enjoying the benefit; it does not discuss a person who refuses the benefit.
- Remedy. Compensation "in respect of" the thing done or delivered, or restoration of the thing.
A modern example (ours)
Ishaan, a web designer, is told by a start-up founder in a meeting, "Go ahead and get started; we will paper the contract later." Ishaan builds the landing page. The founder launches the page on the company's site and uses it for campaigns, but the contract is never signed and no payment is made. Ishaan did the work lawfully and not as a gift, and the company has enjoyed the benefit. Under s.70 the company is bound to make compensation. If Ishaan had said "This is my gift to you", the position would resemble the Act's illustration (b).
What can the parties change?
Section 70 has no "contrary intention" proviso. Its core test is the giver's intention not to act gratuitously, so the parties can express intention in writing: for example, a trial-without-charge or volunteer arrangement states that the work is a gift, and a work order states that the work is chargeable. Careful wording at the start prevents the argument later. The section does not say how much the compensation should be.
Practical points
- Do not start work without a signed order, or at least a written message from the other side agreeing to the work and the rate.
- State your intention. If you are doing something for a charge, say so in the covering email. If you intend a gift, say that too.
- Keep proof of the benefit: delivery records, use of your work, published pages, installed goods.
- Send a written demand with an invoice-like statement of what was done or delivered.
- Take the claim in context. Section 70 sits in the chapter on relations resembling those created by contract; see sections 68 and 69 for the other claims in that group.
- For goods which come into your hands without any contract, see section 71.
Need help claiming for work done without a contract?
Where work has been used but not paid for, the first step is a clear written claim that sets out what you did, when, and why you did not intend it as a gift. Our legal notice drafting team can prepare the notice from your messages and delivery records. Bring any chats, emails and proof of use.
Key takeaways
- Section 70 applies where a person lawfully does or delivers something for another, not intending it as a gift, and the other enjoys the benefit.
- The receiver must pay compensation or restore the thing.
- No contract is needed; the Act places this among relations resembling those created by contract.
- The Act's illustrations: goods left at the wrong house, and a rescue where the circumstances show a gift was intended.
- The section does not use the term "quantum meruit" and does not state how compensation is measured.
Read next
- Sections 68 and 69: necessaries supplied and reimbursement of a person paying another's dues
- Section 71: responsibility of finder of goods
- Section 72: money paid by mistake or under coercion and refund
Disclaimer: Based on the text of the Indian Contract Act, 1872 as consulted on 1 October 2026. Many questions under this Act turn on case law and on the wording of the particular contract, which this article does not cover. It is general information, not legal advice; check the official text and take advice before acting.