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Quasi Contract

Updated on March 13, 2023

A quasi Contract is a legal contract to be entered between two parties at the direction of a judge. This is a non-traditional contract and is remedial in nature to rectify the error or dispute incurred previously on account not having a written contract between the said parties. This contract is instrumental in providing compensation to the aggrieved party and is implemented retrospectively between the two parties.

When is a quasi contract needed?

The need for this contract arises when a party is in the receipt of any goods or services and acknowledges it as its asset or benefit without making any payment or offer for payment for the same to the seller or provider of such asset or service. This type of contract can be implemented only in case where there is no prior contract between the parties (either oral or written). If there is an existing contract between the two, there is no need or premise for having a quasi contract.

The judge enforces the quasi contract retrospectively as a remedy for any damages or dues to the aggrieved party or provider of asset or service and, therefore, aims to create a fair situation for both parties of the contract.