Abstract

• The foundation of quasi-contracts is based on the principles of Equity, Justice and Good Conscience, which requires that nobody shall benefit himself unjustly, at the cost of others. This is known as the Principle of Unjust Enrichment. A contract is an agreement enforceable by law. Mere statement which cannot give rise to legal consequences, and there is no intention to be legally bound. Although the absence of an agreement between the parties the law creates the obligation. A quasicontract is a contract which exists by order of a court not by agreement of the parties. Courts create quasi-contracts to avoid the unjust enrichment of a party in a dispute over payment for a good or service. In some cases a party who has suffered a loss in a business relationship may not be able to recover for the loss without evidence of a contract or some legally recognized agreement. To avoid this unjust result, courts create a fictitious agreement where no legally enforceable agreement exists. Courts also use the term quantum merit to describe the process of determining how much money the charging the party may recover in an implied contract. In short, the liability of the party who has enjoyed unjust benefits to the value of that benefit only.