Quantum meruit - Meaning & Claims Arise On It

“Quantum Meruit” means “As much as earned or as much as merit. The general rule of law is that unless a person has performed his obligation in full, he cannot claim performance from the others. But in certain cases, when a person has done some work under a contract, and the other party discharged the contract or some event happens which makes the further performance of the contract impossible, then the party who had performed the work can claim remuneration for the work he has already done. The claim for quantum meruit arises only when the original contract is discharged and it could be brought by the party who is not in default. The claim on “Quantum Meruit” arises in the following cases:

1. When an agreement is discovered to be void: When an agreement is discovered to be void or when a contract becomes void, any person who has received any advantage under such contract is bound to restore it or to make compensation for it.

2. When something is done without any intention to do so gratuitously: When a thing is unlawfully done or goods are supplied by a person without any intention to do so gratuitously to another person and such other person enjoys the benefit thereof, he is bound to make compensation to the former.

3. Where there is an express or implied contract to render services but there is no agreement as to remuneration. In such a case, the court decides the reasonable remuneration.

4. When the completion of the contract has been prevented by the Act, of the other party to the contract, they could recover the Quantum Meruit.

5. When a contract is divisible: When a contract is divisible and the party is not in default, has enjoyed the benefit of the part performance, the party in default may sue on quantum meruit. But if the contract is not divisible, the party in default cannot claim remuneration on the ground of quantum meruit.

6. When an indivisible contract is completely performed but badly: When an indivisible contract for a lump sum is completely performed, but badly, the person who had performed the contract can claim the lump sum but the other party can make a deduction for bad work.