Law for Business 10th Edition by James Barnes,Terry Dworkin,Eric Richards

Exercise 6

Value-Added Communications, Inc. (VAC), contracted with the New York State Department of Correction Services (DOCS) to provide phone service to inmates. VAC had to pay commissions on the gross revenue it received on collect calls plus a penalty for late payment. VAC later filed for bankruptcy, but before that it had sent three checks to DOCS and also sent three checks after the filing. The bankruptcy trustee sought to recover the money to repay the creditors under a theory of quasi contract. Will he recover the funds? Explain.