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Chapter V - Of Certain Relations Resembling Those Created by Contract

Section 70

Section 70: Benefits from a non-gratuitous act

Section 70 addresses benefits lawfully conferred without an intention to give them free. Where the other person enjoys the benefit, the section provides compensation or restoration on its stated conditions.

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Need advice on Section 70?

This article is for general information. Refer to the Indian Contract Act, 1872 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.

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Statutory text

Bare law

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.

Illustrations

(a) A, a tradesman, leaves goods at B’s house by mistake. B treats the goods as his own. He 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.

Rule and business relevance

The act or delivery must be lawful, not intended to be gratuitous, and enjoyed by the recipient. These requirements should be assessed together. The illustrations distinguish treating mistakenly delivered goods as one's own from saving property where the circumstances show a gratuitous intention.

Limits and related provisions

A supplier cannot force every unsolicited service on another person and automatically demand its chosen price. Lawfulness, non-gratuitous intention and enjoyment must be established, and the appropriate compensation or restoration assessed. A voluntary gift of assistance falls outside the non-gratuitous condition.

Hypothetical business example

Hypothetical: goods arrive by mistake and the recipient knowingly uses them as its own. The parties assess the enjoyed benefit and compensation or restoration instead of assuming the absence of a signed purchase order conclusively decides the matter.

Practical decision flow

Identify the lawful act or delivery and evidence that it was not intended to be free.

Establish whether and how the recipient enjoyed the benefit.

Assess restoration or compensation on the facts rather than treating an invoice amount as automatically binding.

Check the applicable legal framework

This guide explains the central provision. Applicable State amendments, the agreement, transaction date and other governing laws can affect its application. Check the current legal framework before relying on it for a commercial decision.

Practical checklist

Do

  • Identify the lawful act or delivery and evidence that it was not intended to be free.
  • Establish whether and how the recipient enjoyed the benefit.
  • Assess restoration or compensation on the facts rather than treating an invoice amount as automatically binding.

Avoid

  • A supplier cannot force every unsolicited service on another person and automatically demand its chosen price. Lawfulness, non-gratuitous intention and enjoyment must be established, and the appropriate compensation or restoration assessed. A voluntary gift of assistance falls outside the non-gratuitous condition.

Glossary

Non-gratuitous act
An act not intended to be done free of charge or as a gift.
Enjoyment of benefit
The recipient's benefit from the lawful act or delivery, an express condition of the rule.

Frequently asked questions

Does every unsolicited act create a payment right?

No. All three statutory conditions must be established.

What if the act was intended as a free favour?

The non-gratuitous condition is not met on that basis; the illustration expressly recognises this distinction.

Is restoration an alternative addressed by the section?

Yes. It provides compensation in respect of, or restoration of, the thing done or delivered.

Need help applying this provision to your situation?

Contact Bizeneed

Last updated 10 October 2026