Legal Definitions - ex quasi contractu

The Latin phrase ex quasi contractu translates to "from a quasi-contract" or "arising out of a quasi-contract." It refers to a legal claim or obligation that a court imposes on a party as if a formal contract existed, even though no actual agreement was ever made between the parties.

The primary purpose of imposing obligations ex quasi contractu is to prevent unjust enrichment. This means ensuring that one party does not unfairly benefit at the expense of another, particularly when there is no explicit contract to govern their relationship. The law essentially creates a fictional contract to achieve fairness and equity.

Here are some examples illustrating situations where obligations might arise ex quasi contractu:

• Mistaken Payment: Imagine a payroll department accidentally deposits an employee's bi-weekly salary twice into their bank account. The employee did not request or earn the second payment, and there was no agreement for it.

  In this scenario, the law would impose an obligation on the employee to return the mistaken overpayment. The company's legal claim to recover the extra funds would be based ex quasi contractu, as it aims to prevent the employee from being unjustly enriched by money they were not entitled to, despite the absence of a specific contract requiring its return.

• Emergency Medical Services: Consider a situation where an individual collapses unconscious in a public place and paramedics provide immediate, life-saving medical care. The individual is unable to consent to the treatment at the time.

  Even though the unconscious person could not enter into a contract for medical services, the law recognizes that valuable and necessary services were provided. To prevent the individual from receiving these critical benefits without paying their reasonable value, a court might impose a quasi-contractual obligation to pay the paramedics or hospital. The claim for payment for these services would arise ex quasi contractu.

• Overpayment to a Supplier: A construction company orders 50 tons of gravel from a supplier and is invoiced correctly. However, due to an administrative error, the construction company's accounting department accidentally pays the supplier for 75 tons.

  The supplier received payment for 25 tons of gravel that were never ordered or delivered. There was no contractual agreement for this additional payment. To prevent the supplier from being unjustly enriched by the extra funds, the law would impose an obligation to return the overpayment. The construction company's legal action to recover the excess amount would be pursued ex quasi contractu.