Demystifying Quasi-Contracts: Definition, Examples, and Legal Implications

It is based on the principle of fairness and aims to prevent one party from unjustly benefiting at the expense of another. A quasi-contract is a legal remedy developed by courts to address situations where one party is unjustly enriched at the expense of another. Despite the absence of a formal agreement or mutual consent, quasi-contracts impose obligations on the benefiting party to rectify the imbalance. Quantum MeruitQuantum meruit, Latin for “as much as is deserved,” refers to situations where one party provides goods or services to another party without a formal agreement or contract.

1. To encapsulate this, here are a few more examples that underline its application.
2. In simpler terms, quasi contracts aim to ensure fairness and equity when someone benefits from the actions or property of another.
3. The party that lost something is also, crucially, not compensated for the items, services, or other property that they lost.
4. If the person to whom they were mistakenly delivered chose to accept and use the items in the order, they might be brought to court to compensate the person who paid for those items.
5. The Appellate Division also stated that there was no basis for finding that Salamon had reasonably expected Terra to pay for partially completed houses if Salamon was unable to perform the contract.

Understanding Counterclaims: A Comprehensive Guide

To summarise, the obligations under a quasi-contract are not voluntary or consensual, as in a standard contract. Instead, they are judicially enforced to ensure fairness and prevent unjust enrichment. The concept of quasi-contract dates back to Roman law and was developed in French law as an independent cause of obligation—namely, managing obligations not derived from agreement, delict, or unjust enrichment.

We offer an extensive library of learning materials, including interactive flashcards, comprehensive textbook solutions, and detailed explanations. The cutting-edge technology and tools we provide help students create their own learning materials. StudySmarter’s content is not only expert-verified but also regularly updated to ensure accuracy and relevance. The two separate doctrines of quasi-contract theory are Quantum meruit, meaning “as much as earned”, and Quantum valebat, meaning “as much as it is worth”. Besides real-world case studies, various applied scenarios also depict the impact and relevance of quasi-contracts.

Quasi Contract Elements

Unlike express contracts, which are explicitly formed through mutual agreement, quasi contracts are implied by law to prevent one party from benefiting at the expense of another unjustly. In conclusion, quasi contracts play a crucial role in addressing situations where no formal contract exists, yet one party has conferred a benefit upon another. By imposing obligations to prevent unjust enrichment, quasi contracts uphold principles of fairness and equity in the legal system. Understanding the concept of quasi contracts is essential for navigating legal disputes and ensuring equitable outcomes in various transactions and interactions between parties. A quasi contract is a legal fiction created by courts to prevent one party from benefiting unjustly at the expense of another party. Unlike traditional contracts, quasi contracts are not based on the mutual agreement of the parties involved.

Remedy of Restitution

These two principles both address fairness in agreements yet are quite distinct in nature. To fully comprehend the legal facet that is a quasi-contract, it is necessary to delve into its underlying theory. Broadly features of quasi contract speaking, the theory of quasi-contract revolves around the principle of preventing unjust enrichment and maintaining fairness, even in the absence of a formal contract. In the Middle Ages, there was a practice called “indebitatus assumpsit” in which a judge enforced a payment between two parties as if they had agreed to a contract. The court could compel the defendant to pay the plaintiff, the party suing for payment for services or a return of goods, an amount that the court determined. Unjust enrichment occurs when one party profits unreasonably or at the expense of another party.

The restitution, known in Latin as quantum meruit, or the amount deserved, is calculated according to the amount or extent to which the defendant was unjustly enriched. Quasi-contract applies in situations where parties haven’t agreed on a contract, but one party still receives a benefit. This compelling rule of obligation prevents one party from reaping benefits under circumstances that could be unjust to the other. A quasi contract for necessaries arises when one party provides essential goods or services that are necessary for the recipient’s well-being or survival.

Quasi Contract Elements: Everything You Need to Know

All these situations are elaborately discussed under Section 68 to Section 72 of the Indian Contract Act, 1872. This is an exhaustive article that covers quasi-contracts, its types, and other important details in the light of relevant case laws. By submitting this form, I agree that the Terms of Service and Privacy Notice will govern the use of services I receive and personal data I provide respectively. Olga is a Senior Web Analytics Manager at PandaDoc who has been working in the Digital Marketing field for the past 15 years. Olga had roles driving marketing campaigns in document automation, contracts, invoices, and agreements. In her daily life, she is a big fan of traveling and connecting with new people.