A quasi-contract, also known as an implied-in-law contract, is a legal concept that arises when a court enforces an obligation between parties even when no formal contract exists. This typically occurs to prevent unjust enrichment, ensuring that one party does not unfairly benefit at the expense of another.
In essence, a quasi-contract allows a party to receive compensation for services performed or benefits conferred, even if there was no explicit agreement in place. Courts create quasi-contracts to address situations where it would be inequitable for one party to retain a benefit without having to compensate the other party appropriately.
Key characteristics of quasi-contracts include:
- No Formal Agreement: There is no actual or express contract between the parties.
- Unjust Enrichment: The principle is based on preventing one party from being unjustly enriched at the expense of another.
- Imposed by Law: The obligation is imposed by law rather than derived from mutual agreement.
Quasi-contracts are often invoked in situations such as providing necessary services to an incapacitated person or in cases where specific goods are delivered to someone without a formal arrangement.