A contract is an agreement between two or more parties that creates mutual obligations enforceable by law. However, there are certain types of contracts that do not arise from any agreement of parties. One such contract is a quasi-contract.
A quasi-contract is a legal fiction created by courts to prevent unjust enrichment. It is not a real contract in the traditional sense, but rather an obligation imposed by law to prevent one party from receiving a benefit at the expense of another party.
Quasi-contracts arise in situations where there is no express agreement between the parties, but where one party has received a benefit from the other party that would be unjust to retain without compensation. For example, if a contractor mistakenly builds a fence on the wrong property, the property owner may be entitled to compensation for the value of the fence even though there was no express agreement between the parties.
There are several key elements that must be present for a quasi-contract to arise. First, one party must have conferred a benefit on the other party. This benefit could be in the form of goods or services provided, as well as actions taken to prevent harm. Second, the party receiving the benefit must have retained it without providing compensation. Finally, the party conferring the benefit must have done so with the expectation of receiving compensation, even if there was no express agreement to that effect.
One important thing to note about quasi-contracts is that they are not based on the intent of the parties. Rather, they are based on the objective circumstances of the situation. This means that even if one party did not intend to provide a benefit to the other party, a quasi-contract may still arise if the objective circumstances suggest that a benefit was in fact conferred.
In conclusion, a contract which does not arise from any agreement of parties is known as a quasi-contract. Quasi-contracts are a legal fiction created by courts to prevent unjust enrichment. They arise in situations where one party has received a benefit from the other party that would be unjust to retain without compensation. Quasi-contracts are based on the objective circumstances of the situation, rather than the intent of the parties.
