Kim Panenka asked to barrow $4,750 from her sister, Kris, so that Kim could make
ID: 445607 • Letter: K
Question
Kim Panenka asked to barrow $4,750 from her sister, Kris, so that Kim could make her mortgage payment. Kris deposited a check for that amount into Kim’s bank account. Hours later, Kim asked to barrow another $1,100. Kris took a cash advance on her credit card and deposited this amount into Kim’s account. About a week later, Kim asked Kris for $845.50 to pay a dental bill. Kris paid the bill by credit card. After Kris asked for repayment several times and didn’t not receive payment, she filed a suit against her sister in a Wisconsin state court. At the trail, Kim admitted that she had asked for the funds and that it had not been a gift, but she testified that the sisters had a long history of paying for things for each other without expecting repayment. Kris countered that she had “loaned” Kim these amounts. Can the court impose a contract between the sister? Explain [Panenka v. Panenka, 331 Wis.2d 731, 795 N.W.2d 493 (2011)]
Explanation / Answer
Wisconsin state court can impose a quasi-contract between Kim Panenka And Kris. Because Kim Panenka borrowed money from Kris,to make her mortgage payment, Pay her dental bills etc. So in all the cases she received a valuable benefit, and the requirements for a quasi-contract were fulfilled. In such a situation, the law will impose a quasi-contract.A quasi-contract (or implied-in-law contract or constructive contract) is a fictional contract created by courts for equitable, not contractual, purposes. A quasi-contract is not an actual contract, but is a legal substitute formed to impose equity between two parties. The concept of a quasi-contract is that of a contract that should have been formed, even though in actuality it was not. It is used when a court finds it appropriate to create an obligation upon a non-contracting party to avoid injustice and to ensure fairness. It is invoked in circumstances of and is connected with the concept of restitution.
Quasi-contracts are defined to be "the lawful and purely voluntary acts of a man, from which there results any obligation whatever to a third person, and sometime a reciprocal obligation between the parties.
The borrower of the loan is entitled to repay the loan unless otherwise stated by the person who gave the loan
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