188. Meaning of "quasi-loan" and related expressions

(1) A "quasi-loan" is a transaction under which one party ("the creditor") agrees to pay, or pays otherwise than in pursuance of an agreement, a sum for another ("the borrower") or agrees to reimburse, or reimburses otherwise than in pursuance of an agreement, expenditure incurred by another party for another ("the borrower")—
(a) on terms that the borrower (or a person on his behalf) will reimburse the creditor, or
(b) in circumstances giving rise to a liability on the borrower to reimburse the creditor.
(2) Any reference to the person to whom a quasi-loan is made is a reference to the borrower.
(3) The liabilities of the borrower under a quasi-loan include the liabilities of any person who has agreed to reimburse the creditor on behalf of the borrower.