All NotesCivil LawIndian Contract Act, 1872 (ICA)

Indian Contract Act, 1872 (ICA)

Necessaries Supplied to Person Incapable of Contracting Section 68

Necessaries Supplied to a Person Incapable of Contracting under Section 68 of the Indian Contract Act, 1872: The Meaning of Necessaries, Liability of the Minor's Property, and the Supplier's Burden of Proof

Section 68 solves a practical problem created by Section 11. A minor cannot contract, so a shopkeeper who supplies him with food, clothing or medicine has no contract to sue on and would, on strict principle, recover nothing. If that were the law, no one would supply a minor or a person of unsound mind with anything, and the protection given by Section 11 would work against the very people it exists to protect. Section 68 answers the problem without creating a contract: it gives the supplier a claim against the property of the incapable person, and not against him personally.

The double burden on the supplier, and where recovery comes from

1. The Provision

Section 68, Indian Contract Act, 1872

If a person incapable of entering into a contract, or anyone whom he is legally bound to support, is supplied by another person with necessaries suited to his condition in life, the person who has furnished such supplies is entitled to be reimbursed from the property of such incapable person.

Illustrations. (a) A supplies B, a lunatic, with necessaries suitable to his condition in life. A is entitled to be reimbursed from B's property. (b) A supplies the wife and children of B, a lunatic, with necessaries suitable to their condition in life. A is entitled to be reimbursed from B's property.

1.1 It is not a contract

Section 68 sits in Chapter V, headed certain relations resembling those created by contract, and the heading is not decorative. The obligation is imposed by law to prevent unjust enrichment and does not depend on any agreement. Three consequences follow immediately, and each is the answer to a common error.

  1. The incapable person is not personally liable. The claim lies against his property, and if he has none the supplier recovers nothing. No personal decree can be passed, and the liability cannot be enforced against property he acquires afterwards by way of earnings.
  2. The supplier need not prove a contract, and it is no answer that the minor could not have made one. That is the whole premise of the section.
  3. The measure is not the agreed price but a reasonable sum. Since there is no contract, there is no agreed price binding on the estate, and the supplier recovers what the goods or services were reasonably worth.

2. Who Is Covered

  • A person incapable of entering into a contract, which takes its meaning from Section 11 and covers a minor, a person of unsound mind within Section 12, and a person disqualified by any law to which he is subject.
  • Anyone whom the incapable person is legally bound to support. Illustration (b) covers the wife and children of a person of unsound mind. The obligation to support must be a legal one, arising under personal law or statute, and not merely a moral or customary one.
  • The supplier, who may be any person who has furnished the necessaries, including a friend or a relative, and who need not be a trader.

3. The Meaning of Necessaries

The section does not define necessaries and the courts have held it to be a relative concept. The statutory phrase is suited to his condition in life, which imports two questions: what is appropriate to a person of that station, and what did this particular person actually need at the time of supply.

📖 Nash v. Inman, [1908] 2 KB 1 (CA)

Facts: A tailor in Savile Row supplied an undergraduate at Cambridge with clothing including eleven fancy waistcoats, to a substantial value. The undergraduate was an infant and the son of an architect of some means. Evidence was given that at the time of the supply he was already adequately provided with clothing suitable to his position. The tailor sued for the price.

Held: The claim failed. To succeed the supplier must prove two things: that the goods were suitable to the condition in life of the infant, and that they were suitable to his actual requirements at the time of sale and delivery. The second requirement was not made out, since the infant was already adequately supplied, and the tailor had failed to discharge the burden which lay on him. Fletcher Moulton LJ added that the obligation in such cases arises not from contract but from the fact that the goods were supplied to satisfy a need, which is why the price is not recoverable as an agreed price.

Ratio: Necessaries must be suitable both to the station in life of the person supplied and to his actual requirements at the time of supply. The burden of proving both lies on the supplier, and goods are not necessaries if the person was already adequately provided.

3.1 What has been held to be necessaries

  • Food, clothing, lodging and medical attention appropriate to the person's station.
  • Education and training, including school and college fees, books and instruction reasonably suited to the person's position.
  • Legal services reasonably necessary to protect the person or his property, including the costs of defending a suit or of recovering property.
  • Funeral expenses of a deceased husband or parent whom the incapable person was bound to support, where the expense was reasonable.
  • A house taken on rent for residence and for the purposes of education, which the Madhya Pradesh High Court held to be necessaries in Kunwarlal Daryav Singh v. Surajmal Makhanlal, AIR 1963 MP 58, considered below.
  • Money lent for the purchase of necessaries actually supplied, on the principle that the lender stands in the place of the supplier to the extent the money was so applied.

📖 Kunwarlal Daryav Singh v. Surajmal Makhanlal, AIR 1963 MP 58

Facts: A house was let to a minor, who occupied it for his residence and for the purposes of continuing his education. Rent fell into arrears and the landlord sued. It was contended that the minor's agreement was void and that nothing could be recovered.

Held: The Madhya Pradesh High Court allowed recovery of a reasonable sum for the use and occupation, holding that a house taken on rent by a minor for the purpose of living in it and continuing his studies falls within the expression necessaries suited to his condition in life within Section 68. The claim lay against the minor's property and not against him personally, and the amount recoverable was what was reasonable rather than the rent agreed.

Ratio: The supply of necessaries under Section 68 is not confined to goods. Services and the provision of accommodation suited to the condition in life of the incapable person are within the section, and reimbursement is from his property.

3.2 What has been held not to be necessaries

  1. Articles of mere luxury, which are excluded absolutely, though luxurious articles of utility may qualify where the person's station makes them appropriate.
  2. Goods supplied when the person is already adequately provided, which is the ground of decision in Nash v. Inman.
  3. Money lent generally, as distinct from money lent and actually applied in the purchase of necessaries. The lender must prove the application.
  4. Supplies for the purpose of trade or business carried on by the minor, since a minor cannot trade and goods for resale are not necessaries for him.
  5. Goods supplied on the minor's own account where the parent or guardian was supplying his needs, since the requirement did not exist.

4. The Supplier's Burden

⚠ The burden is on the supplier, and it is a double one

Nash v. Inman places the onus squarely on the person claiming. He must prove, first, that the goods or services were suitable to the condition in life of the person supplied, which is a question of station, means and circumstances; and second, that they were suitable to his actual requirements at the time of supply, which requires evidence that he was not already adequately provided. A prudent supplier dealing with a minor therefore enquires about existing provision and about the guardian, and keeps a record, because a failure on the second limb defeats the claim however reasonable the goods appear in the abstract.

5. The Claim and Its Limits

Question

Answer under Section 68

Against whom does the claim lie?

Against the property of the incapable person, not against him personally

What if he has no property?

The supplier recovers nothing

What is the measure?

A reasonable sum for the goods or services, not the agreed price, there being no contract

Is capacity relevant?

No. The section operates precisely because the person is incapable

Does it extend beyond goods?

Yes. Services, education, medical and legal assistance and accommodation are within it

Does it cover dependants?

Yes, where the incapable person is legally bound to support them

Can it be enforced against future earnings?

No. It attaches to the property, and a personal liability is not created

6. Section 68 and the Neighbouring Provisions

  • Section 11 creates the incapacity that makes Section 68 necessary, and Mohori Bibee v. Dharmodas Ghose establishes that a minor's agreement is void ab initio.
  • Sections 64 and 65 do not apply to a minor's agreement, so the supplier cannot frame his claim as one for restitution under those sections.
  • Section 70 is the general provision on non-gratuitous acts and may overlap, but Section 68 is the specific provision for necessaries and does not require the recipient to have enjoyed the benefit in the sense Section 70 requires.
  • Section 33 of the Specific Relief Act, 1963 allows the court, where a defendant successfully pleads incompetence, to require restoration of a benefit to the extent he or his estate has benefited, which is a parallel route in a suit brought against the minor.
  • Section 3 of the Indian Majority Act, 1875 fixes the age of majority at eighteen, which determines who is incapable for the purposes of the section.

7. The Position Stated Shortly

  1. Section 68 gives a supplier of necessaries a claim against the property of a person incapable of contracting, and not against him personally.
  2. It is a quasi-contractual obligation imposed by law, requiring no contract, no consideration and no capacity.
  3. It covers a minor, a person of unsound mind and a person disqualified by law, and extends to anyone the incapable person is legally bound to support.
  4. Necessaries must be suited to the person's condition in life, which is a relative standard turning on station and means.
  5. Nash v. Inman: the supplier must prove both suitability to condition in life and suitability to actual requirements at the time of supply.
  6. Goods are not necessaries where the person was already adequately provided.
  7. Necessaries extend beyond goods to education, medical and legal services, funeral expenses of a dependant, and accommodation, per Kunwarlal Daryav Singh.
  8. Money lent is recoverable only to the extent it was actually applied in purchasing necessaries.
  9. The measure of recovery is a reasonable sum and not the agreed price, there being no contract.
  10. Sections 64 and 65 do not assist against a minor, and Section 33 of the Specific Relief Act, 1963 is the parallel route where he is a defendant.

8. Related Topics and Provisions

Topic or provision

Connection

Minor's Agreement

The incapacity that makes Section 68 necessary, and the limits of restitution

Doctrine of Unjust Enrichment

The principle on which Chapter V rests

Person of Sound Mind under Section 12

The other principal class of persons incapable of contracting

Reimbursement of a Person Paying Money Due by Another under Section 69

The neighbouring quasi-contractual obligation

Section 68, Indian Contract Act

The provision and its Illustrations

Sections 11 and 12, Indian Contract Act

Who is incapable of contracting

Section 70, Indian Contract Act

The general provision on non-gratuitous acts

Section 3, Indian Majority Act, 1875

The age of majority

Section 33, Specific Relief Act, 1963

Restitution where incompetence is pleaded