In: Accounting
What are the requirements to establish a quasi-contract?
Contract-An agreement between two or more parties in which a promise is made to do something or provide something for a valuable consideration
Quasi contract-It is a contract that is created by a court order,not by an agreement made by the parties to the contract.Courts create quasi contracts to prevent a party from being receiving a benefit unfairly, whether it by chance or as the result of another person's misfortune
Requirements of quasi contract:
The three requirements of a quasi contract are-
1)The plaintiff furnished valuable goods or required specfic services to be rendered with a reasonable expectation of being compensated if the defendant breached or failed to meet these expectations.
2)The defendant must knowingly have accepted the aforementioned goods and obtained a direct benefit through this acceptance.
3)The defendant must receive benefits by the goods or services that are regarded as unfair in situations where the plaintiff received no compensation.
Definitions:
Defendant-A party against whom a lawsuit has been filed in civil court or who has been accused of ar charged with a crime or offense.
Plaintiff-A person who brings a legal action against another person or entity such as in a civil lawsuit or criminal proceedings.