What is a Quasi Contract?

 OVERVIEW

• The term Quasi means ‘resemblance to’.

• Quasi Contract is similar to contracts. However, it is different from a contract, in respect that there is no formal agreement entered into by the parties.

Contract = Agreement + Legal Obligation

Quasi Contract = X + Legal Obligation

• In case of Quasi Contract, there is no offer, no acceptance, no consensus-ad-idem and absolutely no intention on the part of the parties to strike a contract. Still, the law, from the conduct and relationship of the parties, imposes an obligation is called Quasi Contractual Obligation.

           Quasi – Contractual Obligation :-

• Claim for necessity supplied to a person incapable of contracting or on his account.

• Reimbursement of persons paying money due by another in payment of which he is interested.

• Obligation of person enjoying benefit of Non Gratuitous Act.

• Responsibility of tinder of lost goods.

• Liability of person to whom money is paid or thing delivered by Mistake/ Under Coercion.

DEFINITION:- 

A quasi contract is a contract that is created by the court when no such official contract exists between the parties, and there is a dispute with regard to payment for goods or services provided. Courts create quasi contracts to prevent a party from being unjustly enriched, or from benefitting from the situation when he does not deserve to do so.

REQUIREMENTS:-

  In order for a judge to make a ruling in this type of case, there are certain requirements for quasi contract. The first of the requirements for quasi contract is that the plaintiff must have provided a tangible good or service to the defendant, with the impression that the plaintiff would receive payment for that good or service. The second of the requirements for quasi contract is that the plaintiff must be able to express why it would be unjust for the defendant to receive the good or service without paying for it, and would therefore be unjustly enriched.

Consider the above example of the greenhouse. John would have every right to demand payment from Teresa, who unexpectedly received a new greenhouse on her property. A quasi contract would be handed down by the court, requiring Teresa to pay restitution, or “quantum meruit,” to John. Quantum meruit is only awarded to the extent that the defendant was unjustly enriched, and no more.

 

DIFFERENCE BETWEEN CONTRACT & QUASI CONTRACT

 

A contract is a real agreement between two or more parties, but a Quasi-Contract is not an agreement but resembles an agreement or a contract.

 

Under a contract, both the parties give their consents freely, while under Quasi-Contract, there is no consent of either of the parties, as it is not voluntarily made.

 

Under a contract, liability exists according to the terms mentioned and agreed upon by the parties, whereas under Quasi-Contract, the liability comes into existence through the conduct of the parties and is based on morality, natural justice, equity, and a good conscience.

 

General Contracts are entered into by interested parties voluntarily without any compulsion, whereas Quasi-Contract are imposed by law.