Define Quasi Contract with Example

A quasi contract, also known as an implied-in-law contract, is a legal agreement that is created by a court order to prevent one party from unjustly enriching themselves at the expense of another party. Unlike a traditional contract, a quasi contract is not created by the express agreement of the parties involved. Instead, it is imposed by the court to ensure fairness and equity in a given situation.

To understand how a quasi contract works in practice, let`s consider an example. Suppose that Tom and Jerry are both contractors who work for the same construction company. One day, Tom is assigned to work on a project for a client who requests a specific type of expensive material to be used. Unfortunately, Tom forgets to order the material, and the client is forced to pay extra for rush delivery.

In this scenario, the client could potentially sue the construction company for breach of contract. However, the court may also impose a quasi contract on Tom, requiring him to pay the additional cost out of his own pocket. This is because Tom was responsible for the mistake, and the client should not have to bear the financial burden of his error.

Another example of a quasi contract can be seen in the case of a contractor who performs work without a formal agreement. Suppose that Alice hires Bob to install a new roof on her house, but they do not sign a contract outlining the terms of the work. After the work is completed, Bob presents Alice with a bill for the services rendered. Alice disputes the amount, arguing that they never agreed on a specific price.

In this case, the court may impose a quasi contract on Bob, requiring him to accept a reasonable price for the work performed. This is because Bob performed the work with the expectation of receiving compensation, and Alice should not be allowed to receive the benefit of the work without paying a fair price.

In conclusion, a quasi contract is a legal concept that can be used to ensure fairness and equity in situations where no formal agreement exists. Although it is not a traditional contract, it is still legally binding and can be enforced by a court of law. By understanding this concept and how it works in practice, individuals can protect themselves from unjust enrichment and ensure that they are treated fairly in all business transactions.