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Quasi Contracts

‘Quasi Contracts’ are so called because the obligations associated with such transactions could neither be referred as tortious nor contractual, but are still recognised as enforceable, like contracts, in Courts. According to Dr. Jenks, Quasi-contract is “a situation in which law imposes upon one person, on grounds of natural justice, an obligation similar to that which arises from a true contract, although no contract, express or implied, has in fact been entered into by them.”

Examples-

  • X Supplies goods to his customer Y who receives and consumes them. Y is bound to pay the price. Y’s acceptance of the goods constitutes an implied promise to pay. This kind of contract is called a tacit contract. In this very illustration, if the goods are delivered by a servant of X to Z, mistaking Z for Y, then Z will be bound to pay compensation to X for their value. This is ‘Quasi-Contract.’

Time, Place And Manner of Performance of Contracts

The rules laid down regarding the time, place and manner of performance are summed up hereunder:

  • Where the time for performance has been specified and the promisor has undertaken to perform it without application by the promisee, the promisor must perform on the day fixed during the usual business hours and at the place at which the promise ought to be performed.

Examples

  • A promises to deliver goods to B at his warehouse on 15th July, 1999. A offers the goods at B’s warehouse but after the usual hours for closing it. The performance of A is not valid.
  • But, where the time of performance is not specified, and the promisor agreed to perform without a demand from the promisee, the performance must be made within a reasonable time. What a reasonable time is, in each particular case, a question of fact.
  • Where a promise is to be performed on a certain day, and the promisor has not undertaken to perform it without application by the promisee, the promisee must apply for performance at a proper place and within the usual business hours. What is a proper time and place is, in each particular case, a question of fact.
  • When a promise is to be performed without application by the promisee and no place is fixed for its performance, the promisor must apply to the promisee to appoint a reasonable place for the performance of the promise, and perform it at such place.
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FAQs on Quasi Contracts & Time, Place & Manner of Performance of Contracts - Legal Reasoning for CLAT

1. What is a quasi contract?
Ans. A quasi contract, also known as an implied-in-law contract, is a legal concept that allows courts to create a contractual relationship between parties even if there is no express agreement. It is based on fairness and prevents one party from unjustly benefiting at the expense of another.
2. What are the elements of a quasi contract?
Ans. To establish a quasi contract, certain elements must be met. These include: - The plaintiff provided a benefit to the defendant. - The defendant appreciated or had knowledge of the benefit. - The defendant accepted or retained the benefit. - It would be unfair for the defendant to keep the benefit without compensating the plaintiff.
3. How does a quasi contract differ from an express contract?
Ans. The main difference between a quasi contract and an express contract is the presence or absence of a formal agreement. While an express contract is created through the explicit consent of both parties, a quasi contract is imposed by the court to prevent unjust enrichment. Quasi contracts are based on principles of fairness rather than the parties' intentions.
4. Can the time, place, and manner of performance of a contract be modified?
Ans. Yes, the time, place, and manner of performance of a contract can be modified if both parties agree to the changes. However, any modifications should be made in writing and signed by both parties to ensure enforceability. It is important to review the original contract terms and consult with legal counsel to ensure compliance with any contractual obligations.
5. What happens if a party fails to perform according to the time, place, and manner specified in the contract?
Ans. If a party fails to perform according to the specified time, place, and manner in a contract, it could be considered a breach of contract. The non-breaching party may have legal remedies available, such as seeking damages or specific performance. However, the availability and extent of these remedies depend on the specific terms of the contract and applicable laws. It is advisable to consult with a lawyer to understand the options in such situations.
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