Quasi Contract

A quasi-contract, also known as a contract implied in law, is a legal concept used when no actual contract exists between two parties, yet one party has received a benefit at the expense of the other. It is not a real contract, because it is not based on mutual agreement, but rather created by the court to ensure fairness. The primary purpose of a quasi-contract is to prevent unjust enrichment — meaning that a person should not be allowed to unfairly profit at another’s cost.

Key Features of Quasi Contract

1. Not Based on Agreement There is no offer, acceptance, or intention to create legal relations. The obligation is imposed by law, not by the parties.
2. Imposed by Courts Courts create a quasi-contractual obligation when justice requires compensation to the injured party.
3. Prevents Unjust Enrichment If Party A benefits at the expense of Party B, Party A must compensate Party B.
4. Legal Remedy The remedy typically involves restitution, meaning the benefiting party must return the value they unjustly received. 

Examples of Quasi-Contract: Situations Payment by mistake: If person A mistakenly pays money to person B, B must return it. Necessaries supplied to a minor or incapacitated person: The supplier can recover the reasonable cost from the minor’s property. Finder of lost goods: A person who finds lost goods has the responsibility of a bailee and must try to return them to the owner.