Section 70 of the Indian Contract Act, 1872, provides that 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 -

Section 70 embodies the equitable principle of quantum meruit and applies even where there is no subsisting contract between the parties. Its three conditions are: (i) the thing must be done or delivered lawfully, (ii) the person doing it must not intend to act gratuitously, and (iii) the other person must enjoy the benefit of the act or delivery. Where these conditions are satisfied, the beneficiary is bound to make compensation in respect of, or to restore, the thing so done or delivered. The section applies to non-gratuitous acts done where a contract fails, is void or is unenforceable, and the compensation is measured by the benefit actually enjoyed.