What is 'Quasi Contract'?

A quasi contract (or quasi-contract) is a legal fiction created by courts to prevent unjust enrichment when no actual contract exists but one party has received a benefit at the expense of another. It is not a true contract but imposes contractual obligations to ensure fairness.

Key Features of Quasi Contract:

• No Agreement: No prior mutual consent or offer-acceptance.
• Legal Obligation: Imposed by law to avoid unjust benefit.
• Equitable Remedy: Ensures fairness, not contractual rights.
• Sources: Derived from Section 70 of the Contract Act, 2074 (2017) in Nepal, which states that a person who obtains a benefit without legal justification must compensate the other party.

Example:

If A mistakenly pays B for goods not delivered, B must return the money under quasi-contract principles, even though no contract existed.