Question

Contract. Kim Panenka asked to borrow $4,750 from her sister, Kris, to make a mortgage payment. Kris deposited a check for that amount into Kim’s bank account. Hours later, Kim asked to borrow another $1,100. Kris took a cash advance on her credit card and deposited this amount into Kim’s account. When Kim did not repay the amounts, Kris filed a suit, arguing that she had "loaned" Kim the money. Can the court impose a contract between the sisters? Explain.

Answer 1

Answer:

Yes

Explanation:

This is an example of a quasi contracts which are fictional contracts that do not come from any agreement but can be imposed on the parties to the contract as if they had entered into an actual contract.

The reason behind imposing the quasi contract by the court is to ensure equity by preventing a situation whereby one party will enrich himself at the expense of another party.

The fact that quasi contracts are equitable contracts, but not legal contracts, therefore implies that the court can impose a contract between the sisters.