Quasi-Contract

What is Quasi-Contract in Contract Law?

Quick Definition

A quasi-contract is a legal obligation imposed by the courts to prevent one party from being unjustly enriched at the expense of another, even where no actual contract exists. It is not a true agreement but a remedy-based construct. The aim is fairness rather than enforcing consent-based promises.

In Context

Quasi-contracts often arise where one party has received a benefit in circumstances that make it unjust for them to keep it without paying. For example, if someone mistakenly pays money they do not owe, the law may require repayment to prevent unjust enrichment. In Lipkin Gorman v Karpnale Ltd, the court allowed recovery of stolen money spent at a casino, reinforcing the principle that enrichment without legal basis can be reversed. These claims are typically brought under restitution rather than contract law strictly speaking, but they are still studied within contract principles. The key focus in exams is identifying whether there has been a benefit, enrichment, and whether it would be unjust to retain it.

See Also

• Restitution

• Unjust Enrichment

• Mistake in Contract

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