Types of Quasi Contract with Examples
A quasi contract, also known as an implied-in-law contract, is a legal concept that allows a court to impose an obligation on one party to provide restitution to another party, even if there was no actual contract between them. This type of contract is based on the principle of fairness and aims to prevent unjust enrichment. In this article, we will discuss the different types of quasi contract with examples.
1. Quantum Meruit
Quantum meruit means “as much as he deserved” in Latin. This type of quasi contract is used when one party provides goods or services to another party without a prior agreement or contract. In such a case, the provider of the goods or services can claim payment for the value of the work performed.
For example, if a plumber is called to fix a leaky faucet without a written contract, but does the work and sends a bill to the homeowner, the homeowner is obligated to pay for the services rendered.
2. Unjust Enrichment
Unjust enrichment is a type of quasi contract that arises when one party receives a benefit from another party without paying for it, and it would be unfair to allow that party to keep the benefit without compensating the provider.
For instance, if a homeowner mistakenly pays their neighbor`s electricity bill, the neighbor would be unjustly enriched by keeping the benefit of the payment without paying for it. In such a case, the homeowner would be entitled to restitution.
3. Promissory Estoppel
Promissory estoppel is a type of quasi contract that arises when a person makes a promise to do something for another person, and the other person relies on that promise to their detriment.
For example, if an employer promises an employee a bonus at the end of the year, but fails to deliver on that promise, the employee may be entitled to the bonus under the principle of promissory estoppel.
4. Necessaries
Necessaries are goods or services that are necessary for someone to maintain their life or livelihood. A quasi contract for necessaries arises when someone is unable to contract for these goods or services, but they are still provided to them.
For instance, if a person is in a coma and needs medical care, but cannot sign a contract for that care, a quasi contract may be used to provide them with the necessary medical services.
Conclusion
In conclusion, quasi contracts are legal obligations imposed on a party to provide restitution to another party, even if there was no actual contract between them. The different types of quasi contracts include quantum meruit, unjust enrichment, promissory estoppel, and necessaries. By understanding the different types of quasi contracts, you can better navigate the world of legal contracts and ensure that you are treated fairly in any situation.