Supply of Necessaries (Section 68)
Introduction
The Indian Contract Act generally states that agreements made with persons who are not capable of contracting (such as minors or persons of unsound mind) are void (not legally valid from the beginning). Because of this rule, suppliers may hesitate to provide essential goods or services to such persons.
To prevent hardship and ensure fairness, Section 68 of the Indian Contract Act, 1872 provides protection to suppliers who provide necessaries (essential goods or services) to such persons.
Meaning / Definition
Section 68 states that when necessaries suited to the condition in life (social and economic position) of a person who is incapable of contracting are supplied to him, or to someone he is legally required to support, the supplier has the right to be reimbursed (paid back).
However, the supplier cannot personally sue the incapable person. The reimbursement can only be recovered from the property of that person.
In simple terms, the law allows recovery of the cost of essential goods or services from the property of the incapable person.
Situations Covered Under Section 68
Supply to a Person Incapable of Contracting
If essential goods or services are supplied directly to a person who cannot legally enter into a contract, the supplier can claim reimbursement from that person's property.
Example:
A supplies food and medicines to B, who is mentally incapable of managing his affairs. A can recover the cost from B's property.
Supply to a Person Whom the Incapable Person Must Support
The rule also applies when necessaries are supplied to someone whom the incapable person is legally bound to support, such as family members.
Example:
If food or basic clothing is supplied to the minor's dependent child or spouse, the supplier may claim reimbursement from the minor's property.
Distinction Between Contractual Liability and Section 68 Liability
| Basis | Contractual Liability | Liability Under Section 68 |
|---|---|---|
| Agreement | Based on a valid contract | No valid contract exists |
| Person liable | Person who made the contract | Recovery only from property |
| Capacity to contract | Parties must be competent | Person is incapable of contracting |
| Nature of obligation | Contractual promise | Legal obligation created by law |
Practical Example
Suppose a tailor provides warm clothing to a minor during winter. Since a minor cannot legally enter into a contract, the tailor cannot enforce a contract against the minor.
However, because clothing is considered a necessary, the tailor can recover the reasonable price of the clothing from the minor's property.
Summary
- Section 68 deals with necessaries supplied to persons incapable of contracting.
- Persons incapable of contracting include minors and persons of unsound mind.
- The goods or services must be necessaries suited to the person's condition in life.
- The supplier cannot sue the incapable person personally.
- Reimbursement can be claimed only from the property of that person.