Section 72 of Indian Contract Act: Simple Example Explained
Section 72 of the Indian Contract Act, 1872, is an important provision that even a common man should understand.
Rishabh Gaur Sir (IGP’s CA Foundation Faculty) explains it beautifully through real-life relatable examples so that no one — neither students nor ordinary people — remain confused or misled about their rights and duties.
Let’s understand Section 72 in simple words with a very relatable story.
What Does Section 72 Say?
Section 72 of the Indian Contract Act clearly says:
“A person to whom money has been paid, or anything delivered, by mistake or under coercion, must repay or return it.”
In simple words:
- If by mistake you receive something that belongs to someone else,
- You must return the goods or pay for them.
- You cannot become the owner just because someone made a mistake.
The law is based on a basic principle:
“No man must grow rich at another person’s cost.”
Even if there is no formal contract between two parties, Section 72 creates a legal duty (like a Quasi-Contract) to return or compensate.
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Real-Life Example: Chilli Potato and Momos
Rishabh Gaur Sir (IGP’s CA Foundation Faculty) explains it with a funny yet powerful restaurant example:
Imagine you go to a restaurant.
You see Chilli Potato on the menu and ask the waiter to bring it, expecting to pay ₹120.
But the waiter, by mistake, brings you a plate of Momos instead of Chilli Potato.
Now, Momos are priced at ₹110.
If you do not know Section 72, you might feel greedy and think:
“It’s the waiter’s mistake. Let me eat the Momos quietly!”
However, according to Section 72, this is wrong.
Even if the waiter made a mistake, you must either return the Momos or pay ₹110 for them.
You cannot enjoy someone else’s goods without compensating — otherwise, you are unfairly gaining at their cost.
The law expects you to behave like a gentleman — either refuse politely when the wrong item comes or pay the correct price if you consume it.
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| Mistake Situation | What You Must Do (Under Section 72) |
|---|---|
| You receive goods by mistake (e.g., Momos instead of Chilli Potato) | Return the goods politely or pay the correct price if consumed |
| You receive extra money by mistake (e.g., double payment) | Return the extra money to the sender |
| A product or item is delivered to you by mistake | Inform the sender and return the item |
| A service is wrongly given to you (e.g., extra service at a restaurant) | Either deny using it or pay reasonable charges if used |
| You benefit from someone’s honest mistake | Compensate fairly; do not exploit the mistake |
Key Point: It’s About Honesty, Not Just Law
Sir further explains:
If you deliberately eat something that came to you by mistake and refuse to pay, it shows dishonesty.
Even if no one notices, under the law (and morally too), you are obliged to compensate.
Section 72 teaches imandari (honesty).
If you knowingly enjoy what belongs to someone else (like wrongly delivered Momos), you have to pay for it — whether you had a formal contract or not.
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How Section 72 Connects to Other Quasi-Contracts?
Section 72 is part of the broader concept of Quasi-Contracts under Sections 68 to 72 of the Indian Contract Act.
All these sections are based on one simple idea:
“You cannot enjoy at another’s expense.”
Whether it’s mistakenly delivered goods, mistaken payments, or anything similar, if you benefit without rightful claim, the law will require you to return or repay.
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Final Conclusion
- If you receive anything by mistake — return it or pay for it.
- Section 72 binds you even without a formal contract.
- Do not misuse someone else’s mistake for your own benefit.
- Always act honestly — it’s both legally and morally right.
So next time you are served Momos instead of Chilli Potato, remember Section 72 — don’t eat quietly and run away!
Be honest, speak up, and if you eat, pay for it properly.
This is what the law — and decency — demand.
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