A quasi contract, also known as an implied-in-law contract, is a legal remedy in business law that provides relief to parties who have acted in good faith and have provided goods or services to another party believing that a contract exists between them. It is a legal fiction that is used to prevent one party from being unjustly enriched at the expense of another party.

A quasi contract is not a true contract, as it does not arise out of an agreement between the parties. Instead, it is a legal remedy that arises from the conduct of the parties. It is based on the principle of unjust enrichment, which states that no one should be allowed to profit at the expense of another without a legal reason.

The concept of a quasi contract can be illustrated through an example. Suppose a contractor provides repair services to a property owner who did not explicitly request such services but implicitly benefited from them. In this case, the contractor has provided services in good faith with the expectation of receiving payment. However, since there was no explicit agreement between the parties, there is technically no binding contract. In such a scenario, the quasi contract remedy can be used to prevent the property owner from receiving a benefit without paying for it.

In order to establish a quasi contract, certain conditions must be met. Firstly, there must be a benefit conferred upon one party by another party. Secondly, the benefit must have been conferred in good faith with the expectation of receiving payment. Finally, the party receiving the benefit must not have a legal reason for receiving the benefit without payment. Once these conditions are met, the party who conferred the benefit can seek a remedy under a quasi contract.

One common misconception about a quasi contract is that it is an agreement without a contract. This is not true, as a quasi contract is not an agreement, but rather a legal remedy that arises from the conduct of the parties. It is a means to prevent unjust enrichment and to provide relief to parties who have acted in good faith.

In conclusion, a quasi contract is a legal remedy that arises from the conduct of the parties and is used to prevent one party from being unjustly enriched at the expense of another party. It is not a true contract, but rather a legal fiction that is used to provide relief to parties who have acted in good faith. Businesses should be aware of the concept of quasi contracts and ensure that they provide explicit terms of agreement in their contracts to avoid any misunderstandings.