Immaterial Contract Law: Understanding the Basics
Immaterial contract law, also known as “quasi-contract” or “implied in law contract,” is a legal concept that is often misunderstood. It is a type of contract that is not explicitly agreed upon by both parties, but rather is imposed by the law to prevent unjust enrichment.
In simple terms, an immaterial contract is not a real contract. It is a legal construct that is used to enforce fairness in certain situations where one party has received a benefit from another without an agreement in place to compensate them.
Immaterial contracts apply in situations where there is no formal contract but where one party has provided a benefit to another party, and the second party has received the benefit without being able to pay compensation. For instance, if a contractor completes work on a home without an explicit agreement on payment, the homeowner may be obligated to pay for the work since they clearly have benefited from it.
Immaterial contract law is often misunderstood since it is not a typical contract with an offer, acceptance, and consideration. There is no agreement for an immaterial contract to exist. Rather, it is imposed by the law in specific situations to prevent unjust enrichment.
To establish an immaterial contract, three elements are required: the receiving party must receive a benefit, the benefit must be knowingly and without objection received by the receiving party, and the benefit must have been provided at the request of the receiving party.
In conclusion, immaterial contract law is an essential concept in modern contract law. It is used to enforce fairness and prevent unjust enrichment in situations where there is no express agreement between parties. By understanding the basics of immaterial contract law, individuals can ensure that they are protected in situations where compensation is deserved but not explicitly agreed upon.