Section 113 The Indian Contract Act, 1872
Section 113 of the Indian Contract Act, 1872 deals with "Compensation for failure to discharge obligation created by quasi-contract."
However, the correct and full text of Section 113 is as follows:
"Compensation for failure to discharge obligation created by quasi-contract. —When an obligation, resembling those created by contract, has been incurred and has not been discharged, any person injured by the failure to discharge it is entitled to receive the same compensation from the party in default as if such person had contracted to discharge it and had broken his contract."
✅ Explanation:
Section 113 falls under the category of "Quasi-Contracts" (Sections 68–72), which are obligations imposed by law, not arising out of actual agreements.
If someone is bound by law (not by mutual agreement) to do something — such as repay money received by mistake — and fails to fulfill this obligation, the injured party can claim compensation, just as in the case of a breach of an actual contract.
📌 Example:
If A mistakenly pays B ₹10,000, and B refuses to return it, then A can sue B. If B still does not pay, then A is entitled to compensation as if there was a contractual obligation and B had breached it.
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