Which term describes an obligation that is not an actual contract but that is imposed by law because of the parties' conduct or because one party would otherwise be unjustly enriched?

• A. Voidable contract
• B. Executory contract
• C. Unilateral contract
• D. Implied-in-law contract

Answer: (D)

The idea here is a remedy created by law to prevent one party from being unjustly enriched at the expense of another, even though there’s no actual agreement between them. This is known as an implied-in-law contract, or quasi-contract. It isn’t formed by mutual assent or a true contract in which the parties bargain and agree; instead, the law imposes an obligation to pay or compensate to avoid unfair benefits.

Think of a situation where one party receives a benefit from another's labor or services but there was no contract, or someone pays for another person’s debt by mistake. The law steps in to require payment or restitution to prevent unjust enrichment. The remedy is typically monetary restitution, not enforcement of a contract right to performance.

This differs from an actual contract (where there is mutual agreement), an implied-in-fact contract (where conduct indicates a contract has been formed), and other contract types like voidable, executory, or unilateral contracts. The term described matches implied-in-law contract.