A quasi contract, also known as an implied-in-fact contract, is when a court creates a contractual obligation between two parties, even though there may not have been any actual agreement made at the time of the transaction. This occurs when one party has received a benefit, or has been disadvantaged in some way, and there is evidence that the second party intended for the transaction to be a contract. Quasi contracts provide an equitable solution to a dispute when there is no written or verbal agreement.
What Does a Quasi Contract Do?
A quasi contract is a tool used by courts to determine when a certain individual or entity should be held responsible for any benefits they have received. In essence, a quasi contract encourages parties to enter into mutual beneficial agreements instead of relying on the legal system to settle disputes. These agreements are usually created after an agreement is placed in doubt by one of the parties, which can be cases where a written contract has been breached.
Examples of Quasi Contracts
An example of a quasi contract is when someone performs work, or supplies goods and services, at the request of the other party with the understanding that they will be paid for the goods or services. In this case, a court may decide that there is an implied agreement between the two parties even if there was no written agreement.
Another example is when a customer can be held liable for goods they have purchased, due to the doctrine of unjust enrichment. In this case, the court may choose to recognize an implied contract even if the customer had no intention of entering into a formal agreement.
The Bottom Line
Quasi contracts are a useful tool for courts to settle disputes when there is no written agreement or other evidence of a contract. By recognizing an implied agreement, the court is able to protect both parties and ensure that justice is served. Businesses should take the time to understand this legal concept to ensure that they are taking all of the necessary steps to protect themselves in any contractual disputes.