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Under Section 70 of the Indian Contract Act, 1872, which the ICSI material applies to the Government, quasi-contractual liability arises when:
Answer & Solution
Correct answer: A.
1. Section 70 of the Indian Contract Act, 1872 reads: '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.'
2. The ICSI text says: '**If the requirements of section 70 of the Indian Contract Act are fulfilled, even the Government will be liable** to pay compensation for the work actually done or services rendered by the State.'
3. The basis is **quasi-contract or restitution** — not a subsisting contract. So the absence of an Article 299-compliant document does not defeat the claim.
4. Option B fails the 'not intending to do so gratuitously' element; options C and D do not fit Section 70.
_Source: ICSI CS Executive — Lesson 5, 'Quasi-Contractual Liability', p. 129._
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