What are quasi-contracts?
Quasi-contracts are contracts that do not meet the criteria for being a true contract. For example, an agreement to pay a salary in exchange for services performed is not a contract because it does not meet the four basic requirements of a contract – offer and acceptance, consideration, mutuality and legality.
A quasi-contract is a contract that has some characteristics of a contract, but it is not strictly speaking a contract. It may have some of the same characteristics as a court order, such as the requirement to perform and the obligation to pay damages if an action is not performed.
Quasi-contracts are often used when parties want to avoid the expense and time associated with drafting and negotiating their own contract. They also provide a convenient way to deal with issues that might be too complicated or time-consuming to handle in any other way. You can visit Khatabook to learn more about the different features of Quasi-contracts like unjust enrichment where one party of the contract gets benefits by mistake or through the other party’s misfortune and how the situation is resolved.
How is it created?
A quasi-contract can be created through the use of an informal agreement between two parties with no written record of it. The parties may also have had discussions about what will happen in case one party does not perform his part of the agreement. These types of agreements are common in business and personal relationships where there is no need to record them formally.
A quasi-contract can also be created through an agreement without written proof or records. This type of agreement is usually made under duress or coercion but still exists even if there are no legal consequences for breaking it. For example, when someone makes an unreasonable demand on another person or makes threats that may be illegal, they could create a quasi-contract by making those demands and threats without having any intention of following through with them if their target’s resistance is met them.
What are the different types of quasi-contracts?
The rules of a quasi contract are followed in accordance with the Indian Contracts Act of 1872. According to this act, there are 5 types of quasi-contracts:
1. Supply of necessities
If a person is legally responsible for another person who is incapable of supporting themselves then this person will reimburse all the expenses of the former person in regard to his efforts for the dependent person
2. Payment by an interested party
If a person pays off the legally obligated debt of another person then the latter person must pay back the former person
3. Obligation to Pay for a Non-Gratuitous Act
If a seller delivers something to a person then he or she must be paid in full by the buyer because it is a gratuitous act. However, while providing if the seller forgets something at the buyer’s house, for instance, and the buyer returns it to the seller then the seller needs to pay the buyer for returning the goods because it is a non-gratuitous act.
4. Finder of Goods
If a person comes across an item that is lost by another person then the founder must keep, store and maintain the found item as he would for any other item of that value he owned. Once the owner of the lost item is found he must return it however, if the owner doesn’t come to claim the lost item then the founder may retain it
5. A mistake of Coercion
If a person obtains an item by mistake like wrongful delivery or by coercion then he or she must either give the item back to the person who paid for the item or reimburse him or her for the amount they paid for the item in the first place.