Other Quasi Contracts

Other Quasi Contracts | Kinds | QUASI-CONTRACTS

CIVIL LAW: QUASI-CONTRACTS > KINDS > OTHER QUASI-CONTRACTS

Quasi-contracts are juridical relations arising from lawful, voluntary, and unilateral acts, which are enforceable to ensure justice and equity. While the primary quasi-contracts under the Philippine Civil Code include Negotiorum Gestio and Solutio Indebiti, there are other quasi-contracts recognized under the law, collectively referred to as "Other Quasi-Contracts."

Legal Basis

Article 2142 of the Civil Code of the Philippines provides the foundation for quasi-contracts:

"Certain lawful, voluntary, and unilateral acts give rise to the juridical relation of quasi-contracts to the end that no one shall be unjustly enriched or benefited at the expense of another."

Scope of Other Quasi-Contracts

Other quasi-contracts extend beyond the classical categories of Negotiorum Gestio and Solutio Indebiti and cover instances where the law imposes an obligation based on equity, fairness, and prevention of unjust enrichment.

The following situations illustrate Other Quasi-Contracts:


1. Payment Made by Mistake (Article 2154)

"If something is received when there is no right to demand it, and it was unduly delivered through mistake, the obligation to return arises."

  • Nature: A form of restitution under quasi-contract. The recipient of the payment has no legal basis to retain the benefit and is obliged to return it.
  • Key Elements:
    • Something has been delivered or paid.
    • The payment or delivery was made by mistake.
    • There is no obligation on the recipient to receive or retain it.
  • Legal Effect: The law imposes an obligation to return the amount or thing unduly received.

2. Obligation to Return What is Unduly Acquired Without Cause (Article 2155)

"Payment by reason of a mistake in the construction or application of a doubtful or difficult question of law may come within the scope of the provisions of this Chapter."

  • Application: Even in cases involving erroneous legal interpretation, an undue benefit must be returned if it lacks just cause.
  • Objective: To rectify situations where equity demands restitution despite the absence of bad faith or fraud.

3. Improvements Made by a Possessor in Good Faith (Article 546, Related Provisions)

  • When a possessor makes necessary or useful improvements on property in good faith, they may recover expenses from the property owner or retain possession until reimbursement (real lien).
  • Application of Quasi-Contract:
    • The relationship is quasi-contractual because it arises without a formal agreement but based on the principle of fairness and equity.
    • The property owner is unjustly enriched if they retain the improvements without compensating the possessor.

4. Expenses Incurred in Compliance with a Moral Obligation (Article 2164)

"When a person voluntarily takes charge of another’s neglected property or business without the owner’s authority, provided that the former’s action is useful to the latter, there is an obligation to reimburse the expenses."

  • Relevance: While this is often considered a subset of Negotiorum Gestio, it illustrates the principle of restitution under quasi-contract.
  • Conditions for Recovery:
    • The act was undertaken voluntarily.
    • The expenses were beneficial to the owner of the property or business.
    • The owner was negligent or unavailable to manage the property or business.

5. Responsibility for Damage Caused by Things or Animals (Articles 2176–2177)

Although primarily tortious, certain scenarios under quasi-delict may overlap with quasi-contracts when restitution is required to avoid unjust enrichment. For example:

  • An individual who benefits from preventing harm through another's intervention may be required to indemnify the rescuer under quasi-contractual principles.

6. Acts Beneficial to Another Without the Latter’s Consent

These situations do not fall squarely under Negotiorum Gestio but still give rise to quasi-contractual obligations. Examples include:

  • Emergency Medical Assistance: A doctor rendering emergency services to an unconscious patient has a right to recover reasonable compensation under quasi-contractual principles.
  • Community Contribution to Common Expenses: Neighbors who benefit from a shared fence or wall are quasi-contractually obligated to share in the cost of maintenance or construction.

7. Obligation of the Principal Debtor for Payment Made by a Third Person (Article 1236)

If a third person pays a debt without the knowledge or against the will of the debtor, the debtor must reimburse the payer if the payment was beneficial.

  • Analysis:
    • There is no prior agreement between the third-party payer and the debtor, yet restitution is mandated under quasi-contractual principles.
    • This ensures that the debtor is not unjustly enriched at the expense of the third-party payer.

8. Situations Where Property is Saved from Loss or Destruction (Articles 2165–2166)

When one party saves the property of another from imminent loss or destruction without the owner’s knowledge or consent, the owner may be required to indemnify for expenses incurred if:

  • The expenses were necessary and reasonable.
  • The intervention resulted in a net benefit to the owner.

Principles Governing Other Quasi-Contracts

  1. Unjust Enrichment: No one shall unjustly enrich themselves at the expense of another.
  2. Good Faith Presumption: Acts under quasi-contracts are presumed to be undertaken in good faith unless proven otherwise.
  3. Reasonableness of Compensation: Obligations arising under quasi-contracts should be proportionate to the benefit received or the expenses incurred.

Judicial Precedents

Philippine jurisprudence provides clarity on the application of quasi-contracts, particularly in cases involving payment by mistake, reimbursement for improvements, and other analogous situations. Courts consistently uphold the principles of equity and restitution to prevent unjust enrichment.


Key Takeaways

  • Quasi-contracts operate to balance equity in situations where formal agreements do not exist.
  • Other quasi-contracts ensure restitution or reimbursement for lawful and voluntary acts that benefit another.
  • The overarching aim is to uphold fairness, prevent unjust enrichment, and ensure that obligations are enforced in cases of lawful, voluntary, and unilateral acts.

Understanding these quasi-contractual principles ensures a comprehensive grasp of how the Civil Code addresses situations beyond conventional agreements.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.