Quasi-Contract of Negotiorum Gestio: What You Need to Know

Quasi-contracts, also referred to as implied-in-law contracts, are legal principles that help impose obligations on parties in the absence of a formal contract. One of the most common types of quasi-contracts is the negotiorum gestio.

Negotiorum gestio is a Latin term that means “management of affairs.” It refers to a situation where a person assumes the responsibility of managing the affairs of another person, without a contractual obligation to do so. In other words, negotiorum gestio occurs when someone helps manage someone else`s affairs without being asked to do so.

The principle of negotiorum gestio is essential in situations where a person`s property or interests are at risk, and they are unable to manage their affairs. For example, if a person falls into a coma, a friend or relative may take it upon themselves to manage the person`s financial affairs, such as paying their bills, negotiating with creditors, and managing their investments. In such situations, the person who manages the affairs of the other person is said to be in negotiorum gestio.

Under the principle of negotiorum gestio, the person who manages the affairs of another person is entitled to reimbursement. This reimbursement is not based on a contractual agreement, but rather an obligation imposed by law. The law recognizes that the person who managed the affairs of the other person did so out of a sense of duty and with the intention of protecting their interests.

The person in negotiorum gestio can claim reimbursement for all expenses incurred while managing the affairs of the other person. These expenses can include reasonable fees for professional services, such as legal, accounting, or management services. The person can also claim reimbursement for any losses incurred while managing the affairs of the other person, such as losses due to investments.

It is important to note that the person in negotiorum gestio must have acted reasonably and prudently while managing the affairs of the other person. If they acted negligently or recklessly, they may not be entitled to reimbursement.

In conclusion, negotiorum gestio is an essential principle in situations where a person is unable to manage their affairs. It allows someone to manage the affairs of another person without a contractual obligation and provides for reimbursement for expenses and losses incurred. If you find yourself in a situation where you need to take on the management of someone else`s affairs, it is important to act reasonably and prudently to ensure that you are entitled to reimbursement under the principle of negotiorum gestio.