What is Quasi Contract | Essentials AND Examples

What is Quasi Contract | Essentials AND Examples

Generally, a contract is made with an offer and its acceptance. But there are some cases where the law imposed the obligations of a contract without the mutual consent of the parties.

The Quasi Contract or Contracts implied in law are exceptional kinds of contracts by which one party is bound by law to perform the obligation for something done or suffered by the other party.

Although he has not entered into a contract by an offer and its acceptance to perform such obligation.

Prof. Winfield: Prof. Winfield defines it as “the liability not exclusively referable to any other head to the law, imposed upon a particular person to pay money to another particular person on the ground of injustice benefits.

Sometimes one party has done something for another or paid money on its behalf and court comes forward on the principle of equity and justice that the person receiving the benefits must make compensation to another.

See Also: What is Contingent Contract

So, the obligations which are not contractual but which are treated as such by law are known as quasi contracts, contracts imposed in law or relations resembling those created by contract.

Essentials & Examples of Quasi Contract

There are five conditions under which the obligations of quasi contracts are imposed by law and they are as follows:

  1. Supplies of Necessaries

If a person incapable of entering into a contract or anyone whom he is legally bound to support is supplied by another person with necessaries suited to his conditions in life.

The person who has furnished such supplies is entitled to be reimbursed from the property of such incapable Person.

(Section 68), When a person, who is not competent to make a valid contract just like a minor and unsound mind person.

But another person supplied him or to whom he is legally bound to support necessaries suited to his conditions in life.

the person who supplies the necessaries of life is entitled to get reward from the property of such incompetent person under the quasi contracts.

See Also: What is Void Contract

Illustration: B is injured in an accident A brings him to a hospital and pays all the expenses of his treatment to save his life.

A is entitled to get a reward from B even though B has not allowed paying expenses in words spoken or written.

  1. Payment due by another

A person who is interested in the payment of money which another is bound by law to pay and who therefore pays it, is entitled to be reimbursed by the other (section 69).

Here it should be noted that a person who makes payment in good faith on behalf of other, he must have the interest to protect the interest of other as well as the interest of his own.

Illustration: A holds the land of B on a lease. The revenue is payable to Government on B’s land. The Government advertises B’s land for sale to recover its revenue.

A makes payment of the revenue to Govt. to save his lease. A is entitled to recover the amount from B under a quasi-contract.

Illustration: A advances $10000 to C on B’s guarantee, that if an amount is not paid by C, he will pay to A.

C fails to make payment and therefore B pays money to A. B is entitled to be reimbursed from C’s property under an implied contract.

  1. Non-Gratuitous Acts

Where a person lawfully does anything for another person or delivers anything to him, not intending to do so gratuitously and such other person enjoys the benefit thereof.

See Also: What is Voidable Contract

The latter is bound to make compensation to the former in respect of, or to restore, the thing so done or delivered.

Illustration: A trader leaves his goods at B’s house by mistake. B sells the goods by treating it as his own B is bound to pay to A for the goods so sold.

Illustration:  A hires bicycles on time basis B a common man gets a bicycle from A’s Shop to do some job. Now B is bound by law to return the bicycle and to compensate to A for the time he has used the bicycle.

  1. Finder of goods

A person who finds goods belonging to another and takes them into his custody is entitled to recover compensation like bailee for the trouble and expenses Incurred by him in trying to find out the real owner and taking care of the goods.

Illustration:  A found a lost horse and he advertised to find the real owner of the horse He spent $500 on advertisement and $600 on food to keep the horse alive Now B, the owner of the horse is bound by Quasi contract to A.

  1. Payment Under Mistake or Coercion

A person whom money has been paid or anything delivered by mistake or under coercion. must repay or return it (section 72).

See Also: What is Wagering Contract

When a person gets the thing or money of another person by coercion or a person pays money or delivers his thing to another by mistake, the person who so gets the thing or money must be returned it or pay for it to its owner.

Illustration: A the carrier of goods delivers goods erroneously to B and B uses the goods. Now B is bound to compensate to A for the goods at a marketable rate under Quasi contract.