Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Will a New Jersey Court Enforce a Quasi-Contract?

Author: Scarinci Hollenbeck, LLC

Date: April 13, 2020

Key Contacts

Back

You don’t always need a binding contract to win a business lawsuit...

You don’t always need a binding contract to win a business lawsuit. In some cases, New Jersey courts will impose liability even though some of the essential elements of a contract are missing. These equitable remedies are based on “fairness,” and they are intended to redress the wrong suffered from the breaching party’s actions when traditional legal remedies are not available.

Will a New Jersey Court Enforce a Quasi-Contract?

Forming a Binding Contract

To start, it is always advisable to have a written contract that details the contract rights and remedies that are available if one party fails to perform. Under New Jersey contract law, the following elements are required to form a binding contract:

  • Meeting of the minds: the parties reached an agreement to (do what is alleged).
  • Offer and acceptance: one party communicated a willingness to enter into the agreement and the other party gave some outward indication that the agreement was accepted.
  • Consideration: each party gave or promised something of value to the other.
  • Certainty: the terms of the agreement were reasonably certain.

Of course, we don’t live in a perfect world, and business deals sometimes fall short of satisfying the above requirements. The good news is that you can often still file a New Jersey lawsuit to enforce the contract.

For instance, a contract may still be enforced even if there are missing terms. If essential terms are either agreed upon or may be inferred from conduct or context, a court can still enforce a contract even if there are missing non-essential terms In such cases, the court will often imply a term when the parties fail to do so. Additionally, the court may imply a term if it’s necessary to give a contract a reasonable construction. For instance, if a contract does not state its duration, the court may imply that the contract is to be performed or continue for a reasonable time, which may be determined based on the type of contract that it is, the past dealings of the parties, etc.

Equitable Remedies Under New Jersey Contract Law 

New Jersey also recognizes several equitable remedies that can be used to enforce an otherwise unenforceable contract. Below are the most common examples:

  • Promissory Estoppel: In some cases, a contract lacking consideration may be enforced, provided that the other party made a promise and you reasonably relied on that promise. Specifically, promissory estoppel requires you (the plaintiff) to show the following: the defendant made a clear and definite promise; the defendant expected that the promise would be relied upon; the plaintiff did reasonably rely on the promise; and the plaintiff’s reliance on the promise caused the plaintiff to suffer a definite and substantial detriment. 
  • Quantum Meruit: Even when the words and actions of the parties are insufficient to establish an intention to agree upon contract terms, a quasi-contract may be imposed by the law for the purpose of bringing about justice without reference to the intentions of the parties. To recover under the principle of quantum meruit, you must be able to prove all of the following factors: that plaintiff conferred a benefit on the defendant; that plaintiff conferred said benefit with a reasonable expectation that defendant would pay for it; and that the benefit was conferred under circumstances that should have put the defendant on notice that plaintiff expected to be paid. 
  • Unjust Enrichment: The doctrine of unjust enrichment is based on the principle that a person shall not be allowed to enrich himself unjustly at the expense of another. To recover under a theory of unjust enrichment, the plaintiff must show the following: that the defendant received a benefit; that retention of that benefit without payment would be unjust; that the plaintiff expected remuneration from the defendant at the time he conferred the benefit; and that a reasonable person in the defendant’s position would have expected to provide remuneration for the benefit.

In order to convince a New Jersey court to order one of the above equitable remedies, you will need to provide evidence. In order to convince a New Jersey court to order one of the above equitable remedies, you will need to provide evidence. So, when there is no written contract, you will need documentation to back up your claims, such as email correspondence, written documents, invoices, or witness testimony.

If you have any questions, please contact us

If you have any questions or if you would like to discuss the matter further, please contact me, Peter Yarem, or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand post image

Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand

Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]

Author: Donald M. Pepe

Link to post with title - "Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand"
Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them post image

Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them

The five most common real estate disputes are breach of contract claims, landlord-tenant conflicts, zoning and land use disagreements, construction claims, and boundary disputes. Understanding why each arises, and taking preventive steps early, can help property owners, tenants, developers, and investors avoid costly litigation. Key Takeaways: Real estate transactions are complex endeavors involving numerous parties […]

Author: Paul Grossman

Link to post with title - "Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them"
When a Child Turns 18: The Gap in Your Family’s Estate Plan post image

When a Child Turns 18: The Gap in Your Family’s Estate Plan

Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]

Author: George McGowan

Link to post with title - "When a Child Turns 18: The Gap in Your Family’s Estate Plan"
Business Mediation: An Overview and Practical Tips post image

Business Mediation: An Overview and Practical Tips

Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]

Author: Paul Grossman

Link to post with title - "Business Mediation: An Overview and Practical Tips"
Top 5 Causes Leading to Construction Defect Litigation post image

Top 5 Causes Leading to Construction Defect Litigation

The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]

Author: Paul Grossman

Link to post with title - "Top 5 Causes Leading to Construction Defect Litigation"
How to Protect Your New Jersey Business When Going through a Divorce post image

How to Protect Your New Jersey Business When Going through a Divorce

The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]

Author: Jay McDaniel

Link to post with title - "How to Protect Your New Jersey Business When Going through a Divorce"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.
“If you would like to submit a file, please email it directly to info@sh-law.com.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!