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Quasi Contract – Meaning, Types and Examples | Business Law

Quasi Contract 

Quasi Contract Definition

Quasi Contract is a type of contract that deals with the rights or liabilities accruing from relations resembling those created by Contract. It is not a real contract and thus called a consensual contract based on the agreement of the parties.

These contracts are based on the principal of Equity and Justice that prevent enrichment of one person at the cost of another. It is created by a judge to correct a circumstance in which one party acquires something at the expense of the other.

These arrangements may be imposed when goods or services are accepted, though not requested, by a party. The acceptance then creates an expectation of payment.

There are certain dealings which are not contracts strictly, though the parties act as if there is a contract. The contract Act specifies the various situations which come within what is called quasi contract.

Quasi contract Example

For example, John ordered Burger to be delivered to his house. If that Burger is delivered to Nick’s House , and someone he enjoys your burger, a quasi contract could be initiated. 

Ram ordered a Tshirt online for his wife, as a birthday present. The delivery boy mistakenly delivered the dress to the lady in their neighborhood, and the neighbor used the Tshirt thinking that it was ordered by her husband In this case, the lady is bound to return the parcel to Ram or pay the price for that Tshirt.

Kinds of Quasi Contract

  • SUPPLY OF NECESSITIES (Sec.68)
  • PAYMENT BY AN INTERSTED PERSON (sec. 69)
  • OBLIGATION TO PAY FOR NON-GRATUITOUS ACTS (Sec. 70)
  • RESPONSIBILITIES OF FINDER OF GOODS (Sec. 71)
  • MISTAKE OR COERSION (Sec. 72)

Promissory Estoppel Vs Quasi Contract

Basis of Differences Promissory Estoppel Quasi Contract
Definition A promise made without a contract that must be kept. A contract created by the court to stop unfair gain.
Agreement Involves a promise, but no official contract. No agreement between the people; created by the court.
Reason for Creation To stop someone from breaking a promise that another person relied on. To prevent one person from getting something without paying for it.
Requirement One person must rely on the promise and suffer a loss. One person must receive a benefit unfairly.
Court’s Role Court enforces the promise to prevent harm. Court imposes the contract to correct an unfair situation.
Example If someone promises to give you something, and you do something based on that promise, they must keep it. If you accidentally pay someone for something they didn’t give you, the court may make them return the money.

Quasi Contract MCQ with Answers

Which of the following is a measure of recovery when a quasi-contract is involved?

A. The amount set forth in the contract.
B. The fair market value of the matter involved.
C. The wholesale price of any good involved.
D. The amount sought by the plaintiff in the complaint.

E. Damages will be computed the same as they are computed for any other contract.

Which of the following is required in order to recover in quasi contract?

A. An implied or express promise
B. A valid contract
C. Acceptance or retention of a benefit conferred on the defendant by the plaintiff
D. A voidable contract

The term ‘quasi-contracts’ is:

A. Defined by section 68 of the Indian Contract Act
B. Named ‘implied in fact contract’ by Section 69 of the Indian Contract Act
C. Found as ‘unjust’ enrichment’ is Section 70 only of the Indian Contract Act
D. Conspicuous by its absence in the Indian Contract Act

Quasi-contracts or implied contracts are exceptional kinds of contracts by which:

A. One party is bound to pay money in consideration of something done or suffered by the other party
B. No contractual relation exists between the parties
C. No contract has been made by the parties
D. All of these

Which of the following statements regarding Quasi-contracts is incorrect

A. It resembles a contract
B. It is imposed by law
C. It is based on the doctrine of unjust enrichment
D. It is voluntarily created

Which of the following transactions cannot be described as Quasi-contracts

A. Claims of necessaries supplied to incompetent person
B. Right to recover money paid for another person
C. Right to claim money if given under coercion or mistake
D. Right to claim money if given under fraud or misrepresentation

The juridical basis of quasi-contractual obligation can be explained through the theory of:

A. Indebitatus assumpsit
B. Unjust enrichment
C. Just and reasonable solution
D. Voluntary benefits

Quasi-contracts are:

A. not contracts in the real sense of the word
B. relations which create certain obligations resembling those created by a contract
C. implied contracts
D. unenforceable contracts

Which of the following statement is true in connection with Quasi-contract.

A. It is imposed by law
B. A Quasi-contract is a revoking contract
C. Damages cannot be claimed for breach of Quasi-contractual right.
D. It arises out of an agreement

 

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