Contracts I - Quasi Contracts - Basics Flashcards
What kind of obligation is a quasi contract?
A quasi-contract is an involuntary obligation treated by the law as a voluntary obligation
When will “the law” “imply” a promise of restitution?
In a quasi contract.
Where one receives a benefit, one will be obliged to pay the one who conferred the benefit if:
1) The one conferring the benefit had a reasonable expectation of payment, and
2) The recipient ought to pay (i.e., to prevent unjust enrichment)
When can reasonable payment not be expected?
1) The one conferring the benefit must not be a volunteer or an officious intermeddler (i.e., a proper party)
2) The one conferring the benefit must not have intended to make a gift
3) The benefit (usually) must not have been conferred over the protest of the recipient
In what cases ought the recipient to pay? (i.e., to prevent unjust enrichment)
1) Property related torts or breaches of trust by the recipient
2) Provision of necessaries to the recipient
3) Discharge of a legal duty of the recipient
4) A reasonable or good faith mistake by the one conferring the benefit
5) At the request of the recipient
What is the “election of remedies” problem?
In legal matters involving both torts and contract breaches, parties sometimes opt for a different legal theory to seek a remedy, a process often referred to as “waiving the contract” or “waiving the tort” in favor of a “quasi-contract” claim. This can give rise to the “election of remedies” principle, which means that parties might be deemed to have chosen a specific remedy even before formal litigation begins. This choice can have significant implications for their legal rights throughout the legal proceedings, as courts may hold them to their initial choice of remedy, preventing them from changing their approach once litigation has commenced. Essentially, “election of remedies” ensures that parties remain consistent in their selection of legal theories and remedies, preventing strategic shifts between contract and tort and quasi contract claims to their advantage once a dispute enters the litigation stage.
Give an example to each of the give cases where the recipient ought to pay
Property Related Torts or Breaches of Trust:
Example: A contractor negligently damages a neighbor’s fence while working on a construction project. The neighbor incurs expenses to repair the fence. Although there was no contract between the neighbor and the contractor, the neighbor may sue the contractor for restitution based on the quasi-contract principle to recover the repair costs.
Provision of Necessaries:
Example: An elderly person becomes incapacitated and unable to care for themselves. A caregiver steps in and provides essential services like meals, healthcare, and daily assistance without any prior contract. The caregiver can claim compensation under a quasi-contract because they provided necessaries to the incapacitated individual.
Discharge of a Legal Duty:
Example: A subcontractor performs work on a construction project, unaware that the main contractor had already fulfilled their obligations to the property owner. The property owner may be required to compensate the subcontractor based on a quasi-contract because they benefited from the work, even though there was no direct contract between the property owner and the subcontractor.
Reasonable or Good Faith Mistake:
Example: A bookstore owner mistakenly delivers a rare, valuable book to a customer, believing it to be a common edition. After discovering the mistake, the customer refuses to return the book. The bookstore owner may have a quasi-contractual claim to recover the book or its value because the customer was unjustly enriched due to the owner’s good faith mistake.
At the Request of the Recipient:
Example: A homeowner asks their neighbor to water their garden while they are away on vacation. The neighbor incurs expenses to buy watering equipment and spends time caring for the garden. When the homeowner returns, they may be obligated under a quasi-contract to reimburse the neighbor for expenses incurred and time spent, as the services were provided at the homeowner’s request.
The one conferring the benefit must not be a volunteer or an officious intermeddler (i.e., a proper party) - given an example to each
Here’s a breakdown:
Not a Volunteer: This means that the person conferring the benefit must not have done so as a voluntary or gratuitous act. They should have a legitimate basis for expecting compensation or a benefit in return for their actions.
Example: If someone mows their neighbor’s lawn without any agreement or expectation of payment, they might be considered a volunteer. In this case, they may not be able to claim a quasi-contractual right to compensation.
Not an Officious Intermeddler: An officious intermeddler is someone who interferes or becomes involved in a situation without any proper or lawful reason. In the context of quasi-contracts, the person conferring the benefit should have a valid interest or reason for their actions.
Example: If an individual takes it upon themselves to repair a stranger’s vehicle without any request, agreement, or valid reason, they might be seen as an officious intermeddler. In such a case, they may not have a quasi-contractual claim for compensation.
