Chapter-12: Quasi Contract/Chapter-13: Unjust Enrichment

Meaning of Quasi Contract:

 Quasi contract is a contract in the eye of law. It is also known as implied in law; it is not a contract at
all. The relation of the parties by which one party is bound to pay money in consideration of
an act done or suffered by the other party even in the absence of the contract is called a quasi
contract.
 In quasi contract obligation is created by law and not by mutual assent and in fact often is imposed
contrary to one’s wishes. Quasi Contract is based on the no man must grow rich, out of another
person’s cost or expenses.
 As per Section 648(1) of Muluki Civil code 2074, unless otherwise provided for in chapter 2 of part 5,
it is deemed to have concluded an indirect contract or quasi contract if ones do a certain, lawful,
voluntary or one sided act which may established legal relation.
 The law of quasi contract is also known as law of restitution. It represents equitable relief. So, one
party is entitled to recover from the other party reasonable value in consideration of the work done
or service provided.

Rules regarding Quasi-contract/its types/cases:

I. Person managing other person’s business at his own will cannot waive unfinished. Sec. 649
II. Taking care of or managing property by a person who takes its responsibility. Sec. 650
III. No freedom to person deleting authority. Sec. 651
IV. Supply of Necessaries. Sec. 661(a)
V. Payment by related person. Sec. 659
VI. Enjoyment of Benefit. Sec. 660
VII. Responsibility of finder of goods. Sec. 662
VIII. Person reasonable compensation to be paid for saving property during calamities. Sec. 652
IX. Reimbursement from the benefited. Sec. 653.
X. Claim from maintenance. Sec. 654
XI. Reimbursement of the expenses incurred obsequies of the deceased. Sec. 655
XII. Liabilities for the expenses in maintenance of sick person. Sec. 656
XIII. Reimbursement of the expenses of treatment. Sec. 657
XIV. Liability for the expenses made by public body. Sec. 658

Difference between contract and quasi contract.

BASIS FOR
CONTRACT QUASI CONTRACT
COMPARISON

Meaning The contract refers to an Quasi-Contract is one that is not exactly

agreement that is enforceable by an agreement but it is similar to an
law. agreement.

Essential elements of Present Absent

the formation of a

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 Chapter-12: Quasi Contract/Chapter-13: Unjust Enrichment

BASIS FOR
CONTRACT QUASI CONTRACT
COMPARISON

valid contract

Consent Both parties give their consent None of the parties gives their consent
voluntarily and freely. voluntarily.

Liability It exists as per the terms and It exists through the party's conduct.
conditions that parties state and
agree upon.

Entry to contract Voluntary Imposed by law

Rights Both rights in rem and rights in Rights in persona

persona

Difference between Quasi-contract and Contingent Contract:

Basis Quasi –contract Contingent contract

Act This is an action based contact. This is a possibility based contract.
Place of Time is not an important factor for the Time is an important factor for the performance of
time performance of this contract. this contract.
Form of This is not made in writing. This must be made in writing.
contract
Elements There lacks of essential elements of There exist such elements.
of contract contract such as offer, acceptance, etc.
Obligation The law itself imposes liability over the The parties themselves determine their obligation
parties concerned. or liability.

The ends

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 Chapter-12: Quasi Contract/Chapter-13: Unjust Enrichment

Meaning of Unjust Enrichment:

 Unjust enrichment is an act of being unjustly enriched. Unjust enrichment is a legal concept referring
to situations in which one person unjustly enriches himself at another’s expenses in circumstances
that the law treats unjust.
 It applies in the situation where a person is enriched at the expenses of another.
 According to Prof. Saravanaval, The term unjust enrichment means the enrichment of one person at
the cost of another.
 Nepal has for the first time, introduce concept of unjust enrichment, Sec. 664 (1) of the Muluki
Civil Code, 2074, defines the terms as, “In case any person obtain any benefit or facility from
another person, without doing any lawful work or fulfill any liability, the person who so
obtain s the benefit or facility is deemed to have obtained an unjust enrichment.

Obligations under unjust Enrichment:

 This taken by mistake to be returned.
 To pay back debt paid by mistake.
 To return goods or amount taken with malafide intention.
 To pay debt paid by third person.
 Right to claim reimbursement if payable tax paid by another person.
 Failure of consideration.
 Money of one obtained by another from third parties which the fist party seeks to recover.

The Ends

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