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A quasi-contract is a legal theory that permits the development of a contractual obligation when there isn't a formal agreement between the parties in the financial context. Another name for this agreement is the "implied-in-law" agreement.
The purpose of quasi-contracts, which are legal fiction rather than actual contracts, is to stop one party from unfairly enriching oneself at the expense of another. When one party has received a benefit or advantage they are not entitled to, the aim of quasi-contracts is to maintain justice and equity.
When someone performs a service for another without having a formal agreement on payment established, this is a common example of a quasi-contract in the finance industry. Notwithstanding the fact that there was no genuine contract in place, the recipient of the service may nevertheless be obligated to pay the provider under the quasi-contract concept.
The terms "constructive contracts" and "implied contracts" are other names for quasi-contracts. It is crucial to remember that these are legal fictions designed to handle circumstances when there is no formal agreement between parties and not true contracts in the usual sense.
