Week 4 Discussion - Show Me My Money(Reisenfeld Company v...

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Show Me My Money (Reisenfeld & Company v. The Network Group Inc., p. 313)Why does the court see this case as involving a quasi-contract as opposed to an actual contract? The court would see this as a quasi-contract because Reisenfeld never entered into a direct agreement with BSI. A quasi-contract, or implied-in-law contract, are not actual contracts but a contractual obligation that a court can impose in order to prevent one party from being unjustly enriched at the expense of another (Kubasek et all, 2012). In this case, BSI had a contract to pay The Network Group, to lease out their empty store locations. Reisenfeld brokered the leasing of two of these buildings through The Network Group. The original contact that Reisenfeld had with The Network Group provided that The Network Group would compensate Reisenfeld on a commission basis for the sublease. When The Network Group was found guilty of fraud the court ordered BSI to stop payment to The Network Group and for The Network Group to give up the profits they received from BSI. This left The Network Group with no money from BSI to pass on to and pay Reisenfeld, per their contract. Although Reisenfeld did not directly have a contract with BSI, the work he provided to sublease the buildings belonging to BSI directly benefited BSI in terms of gained monthly rent but was unjustly at his expense as he was not paid for the job he completed.What other case law does the court rely on in finding precedent/support for compensating Reisenfeld?In this case the Judge cited, “in the contractor/subcontractor context, when the subcontractor is not paid by the contractor and the owner has not paid the contractor for the aspect of the job at issue, the subcontractor can look to the owner for payment under a theory of unjust enrichment” (Kubasek et all, 2012). For example, a contractor, who we will call Tony, is hired to build a house and in the process of building the house, Tony hires asubcontractor, who we will call Mark, to do all the tile work in the bathroom. When the job is completed Tony doesn’t pay Mark for the work he did because Tony hasn’t been paid by the homeowner for the tiling work either. Although Mark was hired by Tony, he could request payment directly from the homeowner for the work

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