[ecis2016.org] A quasi contract is an agreement developed between two parties who weren’t involved in any sort of a contractual commitment beforehand, to maintain fairness between two parties
Quasi contract meaning
A quasi-contract refers to a retroactive arrangement between two parties, where there was no prior obligation contractual commitment between them. It can also be defined as the rights and liabilities between two parties where there is no formal contract. A quasi-contract is also referred to as an implied contract.
You are reading: What is a Quasi Contract?
Quasi-contract importance
A quasi contract is a vital agreement developed between two parties who weren’t involved in any sort of a contractual commitment beforehand. A quasi-contract is usually developed under law, to maintain fairness between two parties or to remedy a situation where one party acquires something in a manner that is detrimental to the other. This contract is essential to prevent the possibility of any financial gains for any party at the cost of the other.
Read also : Top 5 Government sanctioned business loan schemes in India
[ecis2016.org] What is a turnkey project
What is the need for quasi contract?
A quasi contract defines the responsibilities of one party towards the other, in which the latter has the rights over the assets of the former. This form of agreement arises legally and is enforced through a judge, in a situation where, say, A owes something to B because they came into possession of something owned by A, unintentionally or due to some error. The law then comes into force if B decides to forcefully take up A’s property without any payment.
As this contract is enforced legally, neither of the parties is required to give consent. The sole objective of this agreement is to eliminate any chances of giving undue advantage to one party over the other. In the example, given above, B (which came into possession of the property), needs to pay compensation to A for the value of the property.
The term implies contract also refers to the quasi-contract. The agreement requires the defendant to pay for the damage to the claimant.
Read also : IP India: Know all about services provided by IP India portal
[ecis2016.org] Tips to deal with illegal possession of property
Features of quasi contract
- Quasi contracts provide the right to money.
- It is imposed by law in the absence of a contract or mutual consent between the concerned parties.
- Quasi contracts, at their core, are based on the principles of equity and justice.
Prerequisites for quasi contract
A judge would consider certain things, while issuing a quasi-contract:
- The claimant side would have provided the defendant party with the hope of paying them in the form of indirect goods or services.
- The defendant needs to acknowledge the net value of the asset but did not make any efforts to pay for it.
- The claimant side would justify their stand as to why providing goods and services, as well as not getting any compensation is unfair with respect to the defendant’s side. Hence, the judgement would prove the defendant earned using unlawful measures.
[ecis2016.org] All about GST
Quasi contract: Advantages
- Prevents one party from taking undue advantage of the other party.
- Since it is imposed by law, all the parties must follow it.
Quasi contract: Disadvantages
- This contract is not useful if one of the parties was expecting a profit on a deal.
Source: https://ecis2016.org/.
Copyright belongs to: ecis2016.org
Source: https://ecis2016.org
Category: Must Knows
