Qusai Contract

Topics: Contract, Contract law, Quasi-contract Pages: 8 (2339 words) Published: December 25, 2012
Quasi Contract
Analysis of Case Studies
Business Law

Submitted to: Mr. Atta Ullah
Submitted By: Sunnia Farrukh
Submitted on: January 27, 2012
BBA-III (Regular)

Fatima Jinnah Women University

Formation of Contract3
Kinds of Contracts3
Quasi Contract4
Salient Features of Quasi Contract:4
Conditions of Quasi Contract4
Supply of Quasi Contract5
Payment by an Interested Person:5
Liability to pay for Non-Gratuitous Acts6
Finder of Goods7
Mistake or Coercion7
Examples of Quasi Contract8
Case Studies on Quasi Contract8
Case Study 18
Case study 2:9
Case Study 310
Case study 410

A contract is a legally enforceable agreement between two or more parties. The core of most contracts is a set of mutual promises (in legal terminology, "consideration"). The promises made by the parties define the rights and obligations of the parties. Example:

Developer promised to pay Graphic Designer $5000 for creating certain promotional materials for Developer's multimedia work. Graphic Designer created the materials and delivered them to Developer, as required in the contract. Developer admits that the materials meet the contract specifications. If Developer does not pay Graphic Designer, Graphic Designer can go to court and get a judgment against Developer for breach of contract. Formation of Contract

Following are the four stages in formation of contract
* Proposal
* Acceptance
* Promise or agreement
* Contract
Kinds of Contracts

The topic that I am going to describe is Quasi Contract.
Quasi Contract
It is based on principle of equity that no one shall be allowed to become rich unjustly at the expenses of another. A Quasi contract is one which is not based on agreement of the parties but is created by law whereby an obligation is imposed on one party and an action is allowed to be brought by another party. It is an obligation that the law creates in the absence of an agreement between the parties. It is invoked by the courts where unjust enrichment, which occurs when a person retains money or benefits that in all fairness belong to another, would exist without judicial relief. A quasi contract is a contract that exists by order of a court, not by agreement of the parties. Courts create quasi contracts to avoid the unjust enrichment of a party in a dispute over payment for a good or service. In some cases a party who has suffered a loss in a business relationship may not be able to recover for the loss without evidence of a contract or some legally recognized agreement. To avoid this unjust result, courts create a fictitious agreement where no legally enforceable agreement exists. Examples

1. Sarah a business person deposited rupees 10,000 to Sana for safety and security. Sana used the money for her domestic purposes. Sana is liable to pay rupess 10,000 to Sarah. This is a Quasi Contract. 2. Rabia finds certain item belonging to Aneeqa. She keeps these items with her and incurs certain expenses in search of Aneeqa. There is Quasi Contract Aneeqa is Liable to pay expenses incurred by Rabia. Salient Features of Quasi Contract:

* It does not arise from any agreement of the parties concerned, but it is imposed by law over one or both parties * It is right that is available not against the entire world, but against particular person only. Conditions of Quasi Contract

* Supply of necessaries
* Liability to pay for non-gratuitous Acts
* Finder of Goods
* Mistake or Coercion
* Payment by an interested person
Supply of Necessaries:
When necessaries are supplied to a person who is incompetent to contract or to some one whom he is legally bound to support, the supplier is entitled to recover the price from the property of incompetent person. Sec 68 says “if a person, incapable of entering into a contract, or anyone whom he is legally bound to support, is supplied by...
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