Types Of Quasi Contract: Everything You Need to Know
The different types of quasi contract are not technically contracts. 3 min read
2. Wrongful Conversion
The different types of quasi contract are not technically contracts. Rather, it is an obligation created by law when an agreement has been overlooked. In the absence of a legally binding contract, some obligations may still be imposed by law. These obligations are similar to those created by a contract, otherwise known as quasi contracts. Typically, contracts can only be enforced when all elements of a valid contract are present.
Types of Quasi Contracts
When someone is unable to enter into a contract, that person is not obligated to reimburse the person he or she is bound to support. Here's an example:
- Midas was deemed unfit to raise his children. They live with their mother now and three months have passed without their school tuition being paid. Given the decree regarding his inability to raise his children, Midas cannot be made personally liable for the tuition fees.
When someone is seeking a sum of money that is bound by law for payment, he or she is also entitled to reimbursement from another. Here's an example:
- Let's say Daniel is bound by law to make monthly child-support payments. One month, he comes up short and his friend Sally makes the payment for him. As soon as she's discharged his debt, Sally will be entitled to reimbursement from Daniel. If he does not repay her, she may want to take action against him.
Here's another example under a similar pretense:
- Julie kept her car in Johnny's garage while he was renovating his house. As Johnny was attempting to move her car for safekeeping, he crashed it into a construction vehicle. Although Johnny took Julie's car to the repair shop, she wound up incurring a bill for $694. In this instance, Julie may be entitled to reimbursement from Johnny.
In effect, when someone does something for another or delivers something to them, without the intent of doing so gratuitously, and the other person enjoys some type of benefit from their action, the recipient will be bound to compensate the person who delivered. Here's another basic example to illustrate this point:
- Let's say Roman went to the farmers market and then decided to visit Kris on his way home. Upon the completion of his visit with Kris, Roman forgot to take his vegetables with him. Kris, instead of returning them to Roman, decides to use the vegetables to make a delicious stir-fry. In this example, Kris must compensate Roman for his vegetables.
- In the same example, if Kris called Roman and asked him what he should do with the vegetables, and Roman told him to eat them, Kris would not be responsible for the cost of the vegetables.
Whenever someone finds the goods of another and takes them into their custody, they become responsible for them. They become bound to care for those goods as anyone with prudence would. If he or she neglects the goods they've taken into their custody, they set themselves up to be labeled as guilty of wrongful conversion.
Likewise, if the one who finds the goods does not try to locate the owner of the goods, he or she will be found guilty of wrongful conversion. Here's an example:
- Leonard was walking to the train station and found a purse on the side of the road. Inside the purse, he found $200, a driver's license, and a notebook. At this moment, it became Leonard's responsibility to track down the owner or take the purse to the local police station. At no point does Leonard become entitled to the contents of the purse.
- In a different kind of example, let's say Leonard sold flowers at the local farmers market. One afternoon, a lady mistakenly left a carton of vegetables at Leonard's stand. He tried to track down the lady, to no avail. Since he didn't have a refrigerator there, he knew the vegetables would go bad. Only after he spent time trying to track down the lady did he decide to sell the vegetables she left behind. In this instance, he may not be found of wrongful conversion.
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