Question

Apply the legal principles to the facts given below and select the most appropriate answer.

Legal Principles:
1. A contract comes into being from the acceptance of an offer, When the person to whom the offer is made signifies his assent thereto, the proposal is said to be accepted and the parties are at consensus and idem regarding the terms of the agreement.
2. Consideration is something that moves from the promise to the promisor, at the implied or express request of the latter, in return for his promise. The item that moves can be a right. interest, profit, loss, responsibility given or suffered, forbearance, or a benefit which is of some value in the eyes of law.
3. Contractual rights and liabilities are exclusive to the parties to contract.
4. There are few exceptions to the doctrine of privity of contracts like agency, trust, assignment, and third party beneficiary.
5. A quasi-contract is a contract that is created by the court when no such official contract exists between the parties to prevent a party from being unjustly enriched, or from benefitting from the situation when he/she does not deserve to do so.

Facts: Tanu’s brother, Ishan, tries to talk her into building a greenhouse in her large back-yard. She declines, but lshan is convinced that, if she were surprised by a lovely greenhouse, she would love it. Knowing that Tanu makes good money, and could easily afford the greenhouse, Ishan contacts greenhouse builder Aditya and arranges to have him erect the structure while his sister is at work one day. 
Tanu is not happy with her brother’s initiative, but the deed is done. Ishan has directed Aditya to bill his sister for the greenhouse, and that turns out to be the biggest surprise for her. She declines to pay, and Ishan tells Aditya he cannot afford it. Aditya is now out, not only for payment for his many hours of hard work but cash for the materials he used. He files a civil suit to claim against both Tanu and Ishan. Decide.

Options

• Ishan is liable to pay as he has entered into a contract with Aditya for his services.

• Tanu is not liable to pay as there is no contract between Aditya and Tanu.

• Tanu is liable to pay Aditya the costs involved in building the greenhouse as she has been unjustly enriched by this deal.

• Tanu is liable as Ishan is her brother and was acting on her behalf under her implied consent as she liked a greenhouse.

Answer 1

Tanu is liable to pay Aditya the costs involved in building the greenhouse as she has been unjustly enriched by this deal.

Explanation:

According to principle 5, a quasi-contract is a contract that is created by the court when no such official contract exists between the parties to prevent a party from being unjustly enriched or from benefitting from the situation when he/she does not deserve to do so. As Tanu is being unjustly enriched she is liable to pay.