Quasi Contract
A quasi-contract isn’t a real contract but rather a legal concept where the court steps in to prevent unfairness. This happens when one person benefits at another’s expense without an agreement, and the law decides it would be unjust for the benefiting person not to pay. The court creates an obligation to compensate the other party as if there were a contract to avoid unjust enrichment.
For example, if you find a lost wallet, you have a responsibility to take reasonable steps to return it to the owner, like handing it to the police. If you don’t, and the wallet’s contents are lost or damaged, the court might decide you owe compensation, treating the situation like a quasi-contract. This way, the law creates an obligation to protect the owner's interests, even if there was no real agreement.
By CA L.Muralidharan and CPA L.Mukundan
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