How Does a Quasi Contract Come into Existence
A quasi contract, also known as an implied-in-law contract, is a legal concept that arises when two parties have not entered into an agreement, but one of them has received a benefit from the other, and it would be unjust for the recipient not to pay for it. In this article, we will discuss how a quasi contract comes into existence and how it is enforced.
The first step in creating a quasi contract is the existence of a benefit conferred on one party by the other. This benefit can take many forms, from tangible goods or services to intangible benefits such as knowledge or advice. The important thing is that the benefit is conferred voluntarily by one party to the other without any expectation of payment or contractual agreement.
Once the benefit has been conferred, the second party in the quasi contract must have accepted the benefit. This acceptance can be either express or implied, but it must be clear that the second party has received the benefit and intends to keep it without any objection.
The third step in creating a quasi contract is the presence of an unfair advantage. In order for a quasi contract to exist, the party receiving the benefit must have taken advantage of the situation unfairly. This can be the case when one party is unable to pay for a good or service, but the other provides it anyway, knowing that they will never receive payment. Alternatively, it could be that the recipient of the benefit has misled the other party into providing the benefit under false pretenses.
Once all three of these criteria have been met, a quasi contract exists, and the party who conferred the benefit has the right to restitution. This means that the recipient of the benefit must pay for it as though a contract had been in place. However, the amount of restitution is limited to the value of the benefit received, and the party who conferred the benefit cannot profit from the quasi contract.
In conclusion, a quasi contract comes into existence when one party provides a benefit to another without expectation of payment, and the recipient accepts it. The recipient must have taken unfair advantage of the situation, and the provider of the benefit has the right to restitution. While a quasi contract is not a true contract, it provides a way for parties to be compensated fairly when no contract exists.