Definition Definition

Quasi-Contract: Characteristics & Prerequisites of Quasi-Contracts with Example

What is Quasi-Contract?

Quasi-contract is a contractual arrangement between two sides who have never prior established duties to one another. The judicial process, primarily a judge, creates this arrangement to fix a scenario where one party owes anything to another party and owns that man's property. 

The law made these to prevent the unfair benefit of any side's overpaying for a particular commodity. Because the judge determines these decisions, no side can dispute them and is obligated to follow them.

Understanding Quasi-Contract

Quasi-contracts define one group's commitment to another while the latter controls the initial party's assets. Those sides may or possibly not have previously agreed upon something. 

As this contract will not be a real agreement, equal consent is not required, and a tribunal might enforce a duty regardless of the side of the parties' purpose. Whenever one side tries to sue claiming losses under any quasi-contract, the solution is usually reparation or reimbursement depending on the quantum meruit concept. 

Accountability is assessed on an individual scale. The objective is to produce a fair conclusion when one side has a benefit above another. The accused person that obtained the asset makes reparations to the claimant, the aggrieved party, in an amount equal to the asset's worth.

Characteristics of Quasi-Contract

The following are the main characteristics:

  1. It is frequently a claim to finances and refers to a monetary amount.
  2. Power is enshrined in law rather than as a result of a contract.
  3. The right does not apply to all in the universe, but just to one individual. As a result, it reflects a contractual obligation.
  4. These are founded on fairness, moral faith, fair treatment, and legal principles.
  5. This contract is founded on the current party's responsibility rather than a side's commitment.

Prerequisites for Quasi-Contracts

A quasi-contract has to meet certain characteristics to be conferred -

  • The claimant will give another person, the defendant, the desire or expectation that money would be paid as a physical object or service. 
  • The complaint will next argue why the accused is being mistreated by receiving the item while spending for that. In all other terms, the claimant must demonstrate that the accused benefited from an unlawful advantage. 

Practical Example

Example 1

Rick places an online store for fresh products, confirms his location, and pays for them. When the products are delivered, the delivery person sends things to the incorrect location, Mr. Harry's. Instead of refusing the shipment, Mr. Harry takes it and enjoys it. 

The trial began in court, as the judge issued a quasi-contract requiring the receiver to repay the product's price to Rick, who originally spent it. Therefore, under this scenario, Mr. Harry has reaped the product's advantages, and he is obligated to compensate the previous client.

Example 2

Mr. Green purchased a designer gown online as a surprise gift for his spouse. The delivery person accidentally gave the garment to another woman, Mrs. Richard who was his neighbor and utilized it believing her mother had purchased it. 

Throughout this instance, the woman must either send back the package to Mr. Green or refund the cost of the outfit. Otherwise, she can be charged under a quasi-contract.

In Sentences

  • The legislation implies a commitment under a quasi-contract that imposes responsibilities solely on a single party while conferring rights on another.
  • An inferred agreement is another name for a quasi-contract.
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