Contracts-Other Contract Theories
As mentioned, the typical contract involves an offer being made, the offer then being accepted by another party, and the exchange of some consideration. There are, however, other theories or means by which a contract may come into existence.
Sometimes a person who is not technically a party to a contract may have rights under the contract if he or she is a third-party beneficiary. In order for that beneficiary to enforce the contract with the other parties to the transaction, that beneficiary typically must have been intended by the other parties to benefit from the contract. A typical third party beneficiary arrangement would be a party who was injured by another person and who then sues that responsible party and makes a claim against their liability insurance policy. The injured person is an intended beneficiary of that responsible party’s policy and may sue to enforce payment under the policy.
In some instances, a quasi-contract may be recognized. A quasicontract is a contract implied even though there is no express promise to do anything. In order for a quasi-contract to be recognized, there must have been some benefit conveyed by one party to another. The purpose of recognizing quasi-contracts is to prevent the party receiving the benefit from being unjustly enriched.
In addition, the concept known as promissory estoppel may be recognized to enforce certain obligations. If certain promises are made and the other person reasonably relies on them and suffers some loss as a result, then under certain circumstances, that person may sue to enforce the promise made, even if no actual contract was formed.
