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Legal Definitions - quasi contract

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Definition of quasi contract

A quasi contract is a legal obligation imposed by a court to prevent one party from unfairly benefiting at the expense of another, even when no formal agreement or contract was ever made between them. It is not a true contract based on mutual consent, but rather an obligation created by law to ensure fairness and prevent what is known as unjust enrichment.

Here are some examples illustrating how a quasi contract might apply:

  • Mistaken Payment: Imagine Sarah accidentally pays her neighbor Mark's property tax bill instead of her own, due to a mix-up with account numbers. Mark realizes this but doesn't correct the error, enjoying the benefit of a paid bill.

    How it illustrates the term: Even though Sarah and Mark never entered into an agreement for Sarah to pay his taxes, a court might impose a quasi contract. This would obligate Mark to reimburse Sarah for the amount she mistakenly paid, preventing him from being unjustly enriched by her error.

  • Emergency Medical Services: A person collapses unconscious in a public park. A passing doctor, without any prior agreement or request, provides immediate life-saving medical assistance until paramedics arrive.

    How it illustrates the term: There was no opportunity for the unconscious person to agree to a contract for medical services. However, the law might create a quasi contract, obligating the person (or their estate) to pay the doctor for the reasonable value of the emergency care provided. This prevents the person from receiving a vital benefit without compensating the provider.

  • Unrequested Property Improvement: A landscaping company is hired to mow the lawn at 123 Elm Street. By mistake, they mow the lawn at 125 Elm Street, the neighbor's property, which was significantly overgrown. The owner of 125 Elm Street observes them working but does not stop them, and subsequently enjoys a freshly cut lawn.

    How it illustrates the term: The owner of 125 Elm Street never asked for the service, so no actual contract exists. However, because they knowingly accepted the benefit of a mowed lawn without objection, a court might impose a quasi contract. This would require them to pay the landscaping company a reasonable amount for the services rendered, preventing the homeowner from unfairly benefiting from the company's work.

Simple Definition

A quasi contract is not an actual contract but an obligation imposed by law. It arises when one party has been unjustly enriched at the expense of another, even though no formal agreement exists. The law creates this "as if" contract to ensure fairness and prevent one party from benefiting unfairly.