A quasi-contract is a juridical relation arising from certain lawful, voluntary, and unilateral acts, to the end that no one shall be unjustly enriched or benefited at the expense of another. Unlike a contract, there is no agreement; the obligation is imposed by law to prevent unjust enrichment. The two principal quasi-contracts are negotiorum gestio and solutio indebiti. Negotiorum gestio (management of another's affairs) arises when a person voluntarily takes charge of the agency or management of the business or property of another, without any power from the latter; the gestor (manager) must continue the management until the affairs are concluded and is liable for the proper handling, while the owner must reimburse necessary and useful expenses. Solutio indebiti (undue payment) arises when something is received when there is no right to demand it, and it was unduly delivered through mistake; the recipient has the obligation to return it. If the recipient was in bad faith, they must also pay interest or answer for losses. Beyond these two, other situations also give rise to quasi-contractual obligations under the principle against unjust enrichment. So a person can owe an obligation even without a contract, when they have been unjustly benefited at another's expense.
Obligation Without Agreement
A quasi-contract is an obligation imposed by law from certain lawful, voluntary, unilateral acts, to prevent unjust enrichment — there is no agreement.
Negotiorum Gestio
Negotiorum gestio arises when a person voluntarily manages another's business or property without authority. The gestor must continue and handle it properly; the owner must reimburse necessary and useful expenses.
Solutio Indebiti
Solutio indebiti arises when something is received with no right to demand it, unduly delivered through mistake — the recipient must return it (and, if in bad faith, pay interest or losses).
Practical Takeaways
- A quasi-contract creates an obligation without a contract, to prevent unjust enrichment;
- Negotiorum gestio = managing another's affairs without authority;
- Solutio indebiti = you must return what was paid to you by mistake.
Frequently Asked Questions
What is a quasi-contract? A juridical relation arising from lawful, voluntary, and unilateral acts, imposed by law to prevent unjust enrichment, even though there is no agreement between the parties.
What is negotiorum gestio? It arises when a person voluntarily takes charge of the management of the business or property of another without authority. The manager must handle it properly, and the owner must reimburse necessary and useful expenses.
What is solutio indebiti? It arises when something is received when there is no right to demand it, and it was unduly delivered through mistake. The recipient is obliged to return it, and if in bad faith, to pay interest or answer for losses.
Can I owe an obligation without a contract? Yes. Through quasi-contracts, the law imposes obligations to prevent unjust enrichment, so a person who has been unjustly benefited at another's expense may owe an obligation even without any agreement.
This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.
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