7 Types of Quasi Contract and How They Work in Export Management

A quasi contract is a legal obligation that arises from a situation where one party benefits from the services or goods of another party without a formal agreement. Quasi contracts are also known as implied contracts, constructive contracts, or contracts implied in law. They are used to prevent unjust enrichment or unfair advantage of one party over another.

In this article, we will explain what are the types of quasi contract and how they work in export management. We will also provide some examples of quasi contract situations and how to deal with them.

According to the Indian Contract Act, 1872, there are seven types of quasi contract:

1. Supply of necessaries

When a person who is incapable of entering into a contract, such as a minor, a lunatic, or an intoxicated person, is supplied with necessaries suited to his condition in life by another person, the latter is entitled to be reimbursed from the property of the former. For example, if a minor is provided with food, clothing, or education by a stranger, the stranger can claim compensation from the minor’s property.

2. Payment by an interested person

When a person pays money that is due by another person, in order to protect his own interest, he is entitled to be reimbursed by the latter. For example, if a creditor pays the taxes due by his debtor to prevent the sale of the debtor’s property, the creditor can recover the amount from the debtor.

3. Obligation to pay for non-gratuitous acts

When a person does something for another person without any intention of doing it gratuitously, and the latter enjoys the benefit of it, he is bound to compensate the former for it. For example, if a person delivers goods to another person by mistake, and the latter uses them, he has to pay for them.

4. Responsibility of finder of goods

When a person finds goods belonging to another person and takes them into his custody, he is bound to take reasonable care of them and return them to the owner or his agent. He is also entitled to be compensated for any expenses incurred in preserving or finding out the owner of the goods. For example, if a person finds a lost wallet and keeps it safely until he locates the owner, he can claim reimbursement for any costs involved.

5. Liability of person to whom money is paid or thing delivered by mistake or under coercion

When a person receives money or goods from another person by mistake or under coercion, he is bound to repay or return it. For example, if a person pays an excess amount to another person by mistake, he can demand a refund.

6. Quantum meruit

When a person hires another person to do some work for him and no price is agreed upon, he has to pay him as much as he deserves for his work. This is called quantum meruit, which means “as much as he has earned”. For example, if a person hires a carpenter to make some furniture for him without fixing the price, he has to pay him according to the quality and quantity of his work.

7. Quasi contracts arising out of particular relations

When a person holds some property on behalf of another person or is bound by law to pay some money or deliver some goods to another person, he has to do so accordingly. For example, if a person dies without leaving a will, his legal heirs have to distribute his property among themselves according to the law.

How Quasi Contracts Work in Export Management

Quasi contracts are often used in export management when there is no formal contract between the exporter and the importer or when there is a dispute over the terms of the contract. Some situations where quasi contracts may arise are:

When an exporter delivers goods to an importer without receiving an order confirmation or an advance payment.
When an exporter delivers goods that are different from what was ordered by the importer.
When an exporter delivers goods that are defective or damaged.
When an importer refuses to accept or pay for the goods delivered by the exporter.
When an importer pays less than what was agreed upon with the exporter.
When an exporter incurs additional costs or losses due to delays or changes in the delivery schedule by the importer.
When an exporter provides services such as inspection, testing, certification, or insurance to the importer without charging for them.

In these cases, quasi contracts can help resolve the issues and ensure fair compensation for both parties. The exporter can claim reimbursement for the value of the goods or services provided or for any expenses or damages suffered. The importer can claim refund or replacement for the goods that are not as per the order or for any losses incurred due to faulty or delayed delivery.

However, quasi contracts are not always easy to enforce as they depend on various factors such as:

The nature and extent of the benefit received by one party from the other.

The intention and expectation of both parties regarding the transaction.

The prevailing market price and customs of the trade.

The evidence and proof of the claim and the counterclaim.

Therefore, it is advisable for exporters and importers to avoid quasi contract situations and enter into clear and written contracts that specify the terms and conditions of the trade. This will help prevent misunderstandings, disputes, and litigation and ensure smooth and successful export management.

How Quasi Contracts Affect the Global Demand for Legal Services

Quasi contracts are legal obligations that arise without an actual agreement between the parties. They are based on the principles of justice, equity, and good conscience, and aim to prevent unjust enrichment or loss. Quasi contracts are recognized in many legal systems, such as the common law, civil law, and Indian law. In this blog post, we will explore how quasi contracts affect the global demand for legal services.

Types of Quasi Contracts and Their Implications

There are five types of quasi contracts that are commonly recognized by courts. They are:

Supply of necessities: This type of quasi contract arises when a person supplies necessities to another person who is incapable of entering into a contract, such as a minor or a mentally ill person. The supplier can recover the reasonable price of the necessities from the person or their estate.

Payment by an interested person: This type of quasi contract arises when a person pays the debt of another person to protect their own interest, and can recover the amount from the debtor.

Obligation to pay for non-gratuitous acts: This type of quasi contract arises when a person lawfully does something for another person without intending to do it for free, and the other person enjoys the benefit of it. The doer can claim compensation from the beneficiary.

Responsibility of finder of goods: This type of quasi contract arises when a person finds goods belonging to another person and takes reasonable care of them until they return them to the owner. The finder can claim any expenses incurred in doing so.

Payment of money by mistake or coercion: This type of quasi contract arises when a person pays money to another person by mistake or under coercion, and can recover it back.

These types of quasi contracts have different implications for the global demand for legal services. On one hand, they may increase the demand for legal services, as they create more disputes and litigation between parties who did not have a prior contractual relationship. For example, a supplier may sue an incapable person for the price of necessities, or a finder may sue an owner for expenses. On the other hand, they may decrease the demand for legal services, as they provide clear and uniform rules for resolving such disputes without resorting to court. For example, a person who pays money by mistake or coercion can easily claim it back without hiring a lawyer.

Quasi contracts are an important aspect of contract law that affect the global demand for legal services. They create legal obligations between parties who did not have an actual agreement, based on the principles of justice, equity, and good conscience. They may increase or decrease the demand for legal services depending on the type and nature of the quasi contract involved.

References:

https://en.wikipedia.org/wiki/Goff_%26_Jones

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https://en.wikipedia.org/wiki/Quasi-contract

https://www.wallstreetmojo.com/quasi-contract/

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