Quasi Contract
A quasi-contract is a legal relationship that arises from the creation of a certain expectation, even though a formal contract is not expressly formed. It is essentially a situation where one party makes a promise or takes an action that creates a duty of performance, even though there is no intention to form a full-blown contract.
Elements of a Quasi-Contract:
- Expectation: There must be an expectation of promise or performance.
- Promise or Action: The promisor must make a promise or take an action that creates a duty.
- Duty of Performance: The promisor must fulfill the promise or perform the action.
- Breach: If the promisor fails to fulfill the promise or action, there can be a breach of the quasi-contract.
Examples of Quasi-Contracts:
- Express promises: Promises made in response to a request, such as promises to pay a debt or perform a service.
- Implied promises: Promises that arise from the actions of the parties, even though they are not expressly stated. For example, a landlord’s implied promise to maintain the property in habitable condition.
- Statutory duties: Duties created by law, such as the duty of a manufacturer to ensure the safety of its products.
Legal Remedies:
If a promisor breaches a quasi-contract, the injured party can sue for breach of contract, negligence, or other appropriate legal remedies.
Distinction from Contracts:
Unlike contracts, which are formed intentionally between two parties, quasi-contracts are created unintentionally. They arise from the particular circumstances of the case, rather than the mutual consent of the parties.
Additional Notes:
- Quasi-contracts are not necessarily binding on all parties.
- The law of quasi-contracts varies by jurisdiction.
- The remedies for breach of a quasi-contract may be limited.
FAQs
What is a quasi contract in simple words?
A quasi contract is a legal obligation imposed by the court to prevent one party from being unfairly enriched at the expense of another. It is not an actual contract but is treated as one to ensure fairness.
Is a quasi contract not a contract?
A quasi contract is not a real contract, as it is not based on mutual agreement. Instead, it is created by law to prevent unjust enrichment when no formal contract exists.
What is an example of a quasi contract?
An example of a quasi contract is when someone mistakenly receives a service or goods and benefits from it. The court may require them to pay for it even though no contract was signed, to avoid unfair gain.
What is quasi contract under Section 68 to 72?
Sections 68 to 72 of the Indian Contract Act outline situations where quasi-contractual obligations arise, such as when a person supplies necessities to someone incapable of contracting, or when money is paid by mistake.
