Quasi-Contracts

The concept of ‘quasi-contracts’ generally arises in cases where the law imposes on someone an obligation, through the creation of another contractual arrangement, to make repayments on grounds of unjust benefit at the expense of someone else, in keeping with the decision in Shamia v. Joory [1958] 1 QB 448.

Therefore, with this in mind, more specifically, in the case of building and construction contracts in particular, situations may arise where the party that is paying for the work may draft the contract to derive ‘money benefits’, illustrated by Twinsectra Ltd v. Yardley [2002] 2 WLR 802 and, on analogy, Westdeutche Landesbank v. Islington LBC [1996] 2 All ER 961, HL and may be considered voidable if they entered into it under duress or undue influence, supported by Barton v. Armstrong [1975] 2 All ER 465, PC.

But if the contract is voluntarily acted upon, it must also be recognised that it will usually be considered to be binding, in keeping with the decision in Ormes v. Beadel (1860) 2 De GF & J 333, unless it is voidable on grounds of restituion.

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