Forest Lumber Company orally contracts with Gail for the purchase of five acres of Gail's timberland. Gail makes the transfer but Forest Lumber does not pay the price. Gail could most likely recover on a theory of
A) reformation.
B) restitution.
C) liquidated damages.
D) quasi contract.

Question

Forest Lumber Company orally contracts with Gail for the purchase of five acres of Gail's timberland. Gail makes the transfer but Forest Lumber does not pay the price. Gail could most likely recover on a theory of
A) ​reformation.
B) ​restitution.
C) ​liquidated damages.
D) ​quasi contract.

Quizplus · Accepted Answer

Quasi contract is an implied contract that arises from the conduct of the parties, rather than from an express agreement. In this case, Gail transferred the timberland to Forest Lumber, and Forest Lumber accepted the transfer. Forest Lumber's failure to pay the price constitutes a breach of the implied contract, and Gail is entitled to recover on a theory of quasi contract.

Forest Lumber Company Orally Contracts with Gail for the Purchase