Quasi Contract

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Definition of 'Quasi Contract'

A quasi contract is a legal obligation that is created by the law to prevent unjust enrichment. It is not a true contract, because there was no agreement between the parties, but the law imposes the obligation in order to prevent one party from benefiting at the expense of the other.

There are two main types of quasi contracts:

* **Constructive trusts** are created when one party receives money or property that they know belongs to another person. For example, if you find a lost wallet, you have a constructive trust on the money inside the wallet. You are obligated to return the money to the rightful owner, even if you did not know who the owner was when you found the wallet.
* **Unjust enrichment** is created when one party receives a benefit from another party, but there is no legal basis for the benefit. For example, if you provide services to someone without a contract, you may be able to recover the value of the services if the other party would be unjustly enriched if they did not have to pay you.

Quasi contracts are based on the principle that no one should be allowed to profit from another person's mistake or misfortune. The law imposes the obligation to prevent unjust enrichment, even if there was no agreement between the parties.

Quasi contracts are often used in cases of mistaken payments. For example, if you accidentally send money to the wrong person, you may be able to recover the money if you can prove that the other person knew that the payment was a mistake.

Quasi contracts can also be used to recover damages for breach of contract. For example, if a contractor fails to complete a project, the homeowner may be able to recover the cost of the project even if there was no written contract.

Quasi contracts are a complex area of law, and it is important to speak to an attorney if you have any questions about your rights or obligations.

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