Commercial Law

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ASSIGNMENT# 1 Kinds of QUASI contract

QUASI CONTRACT: The contract which is created neither by word nor by actions. This
contact is created by law. Here, are some kinds of QUASI law with some examples.

 Unjust Enrichment: It occurs when one party receives a benefit from another party
without compensating them, and it would be unfair to allow the recipient to keep the
benefit without paying for it. E.g.: A accidentally pays B twice for the same service. B realizes
the mistake but keeps the extra payment without notifying A. A can seek a quasi-contract
obligation for B to return the extra payment.
 Necessaries: If one party provides necessary goods or services to another, and the recipient fails
to pay for them, a quasi-contractual obligation may arise. This typically applies in situations
where the recipient is unable to provide for themselves. E.g.: ‘A’ is a nurse, provides
emergency medical care to ‘B’, who is unconscious and unable to consent. After ‘B’
recovers, he refuses to pay for the medical services. ‘A’ can seek a quasi-contractual
obligation for the necessary medical services provided.
 Emergency Services: If a person provides necessary services in an emergency situation where
there was no prior agreement, they may be go for compensation under a quasi-contract. E.g.:
During a severe storm, A's tree falls onto B's property, causing significant damage. B hires a tree
removal service without obtaining A's consent. A benefits from the removal of the tree. B can
seek a quasi-contractual obligation for the cost of the emergency tree removal services.
 Mistaken Payment: If someone mistakenly pays another party money or delivers property, and
the recipient realizes the mistake, they are generally obligated to return or compensate for it.
E.g.: ‘A’ accidentally transfers 1,000 rupees to B's bank account, thinking he was paying
a different person with a similar name. ‘B’ notices the unexpected deposit but does not
inform A. A later realizes the mistake. B can be obligated under a quasi-contract to return
the 1,000rupees.
 Work and Labor: If one party performs work or labor for another, but there was no explicit
contract specifying payment, a quasi-contractual obligation may arise to ensure the worker is
compensated for their efforts. E.g.: ‘A’ help his neighbor ‘B’ landscape their garden
without discussing payment. Later, ‘B’ refuses to compensate ‘A’s time and effort. A
quasi-contract may be used to ensure ‘A’ is paid for the work and labor provided.

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