Quasi-contract Definition: An Overview

Quasi-contract is a legal term used to describe a situation where there is no formal contract between the parties involved, but the law imposes an obligation on one party to compensate the other party for a benefit received. A quasi-contract exists to prevent unjust enrichment of one party at the expense of the other.

In other words, a quasi-contract is a legal remedy used to prevent someone from unfairly profiting from a situation where there was no agreement in place. It is also known as an implied-in-law contract or a constructive contract.

When Does a Quasi-Contract Arise?

A quasi-contract arises when there is no formal contract in place, but one party receives a benefit that would be unjust to retain without compensating the other party. For example, if a homeowner hires a contractor to fix their roof and pays for the work to be done, but the contractor accidentally damages a nearby tree belonging to the neighbor, the neighbor may have a claim under quasi-contract theory for the value of the damage done.

To establish a quasi-contract, there must be:

1. A benefit conferred: The plaintiff must show that they provided some benefit to the defendant.

2. Lack of a contract: There must be no contract in place that governs the relationship between the parties.

3. Unjust enrichment: The defendant must have received a benefit that would be unjust to retain without compensating the plaintiff.

4. Reasonable expectation of compensation: The plaintiff must have had a reasonable expectation of compensation for the benefit conferred, even though there was no formal agreement in place.

Types of Quasi-Contracts

There are two main types of quasi-contracts: implied-in-fact and implied-in-law contracts.

Implied-In-Fact Contracts: These are contracts that are implied from the circumstances of the transaction. They arise when the parties do not explicitly state their agreement, but it can be inferred from their conduct and the circumstances surrounding the transaction.

Implied-In-Law Contracts: These are contracts imposed by law when there is no actual agreement between the parties. They arise to prevent unfair enrichment when one party has received a benefit that would be unjust to retain without compensating the other party.

Conclusion

Quasi-contracts can be a useful legal tool to prevent unjust enrichment when there is no actual contract in place. They provide a way for parties to recover for the value of benefits conferred and can be an alternative to filing a lawsuit for breach of contract. As a professional, it is important to understand legal terms and concepts like quasi-contracts to ensure that articles are informative, accurate, and engaging.