QUASI-CONTRACT

Under certain circumstances a person may receive a benefit for which the law considers he should pay to the other person even though there is no contract between the parties. Such relations are termed quasi-contracts. These are not contract in the strict sense. There is no offer, no acceptance, no meeting of minds and in fact, neither agreement nor promise. Yet the law from such circumstances of the case implies by a fiction there is a contractual relation and the parties are bound to perform their promise. The basis of quasi-contract is the doctrine of unjust enrichment that is, a person shall not be allowed to enrich himself unjustly at the expense of another.

RULES REGARDING QUASI CONTRACT

There are different types of quasi-contract follows:

a. Action for money had and receive:

This may be arise in three sets of circumstances.

1. Money paid by a person to another which he seeks to recover: Where money is paid by mistake or money paid to the other party under a contract but consideration of the contract has failed; and where money obtained by one party to other party by coercion fraud or other means. In these grounds the party can recover his money which was paid to other party.
2. Money paid by one party to the benefit of other party which the first party seeks to recover.
3. Money obtained by one party from third party which the second party seeks to recover.

b. Quantum-meruit:

Quantum-merit means as much as he has earned a reasonable amount. A quantum-meruit action arise where the work is done or services are rendered by one person to another in a circumstances entitling the former to receive a reasonable remuneration therefore the claim for quanturn-meruit arises in the following cases:

1. When an agreement is discovered to be void.
2. When something is done without any intention to do so gratuitously.
3. Where there is a contract to services but no agreement as to price.
4. Where contract is not performed by the acts of the other party to the contract.
5. Where contract is divisible.
6. Where contract is performed but badly or not precisely.

c. Necessaries Supplied to a person incapable of contracting: Where necessaries are supplied to an infant or minor, or to a person of unsound mind, he must pay a reasonable amount there for.

d. Obligations of a finder of lost goods: The obligations of a finder of lost goods is to return back or to preserve the goods, as well as the obligation of the owner of the lost good is to pay a reasonable amount to the finder of lost goods based upon quasi-contract.