Quantum Meruit: Definition and Meaning

It simply refers to the actual cost of the goods or services provided. If a claimant is not compensated by fulfilling their commitments, they may bring an action in quantum meruit to recover payment for the services they provided to the defendant. Typically, the claimant must demonstrate that the defendant freely accepted the services in question after making an express or inferred request for them. Depending on the circumstances, the claimant may have trouble demonstrating the amount to which they are legally entitled under the quantum meruit concept.

What is Quantum Meruit?

The maxim Quantum Meruit is related to or derived from Quantum Valebat means ‘as much as it is worth’ A fair level of money to be paid for services provided or labour completed when the payment due is not specified in a binding contract. Quantum

Illustration of Quantum Meruit

Quantum Meruit is a claim under quasi−contract. Suing Quantum Meruit is the only option available to a party in the event of a contract breach. When one party fulfils their end of a contract, Meruit may be brought.

Important Case Laws

Planche vs. Colburn [1831] EWHC KB J56

• The plaintiff in this case signed a contract promising to write a book for the defendant.

• It was agreed that 100 pounds would be paid after the work was finished. The plaintiff began and finished a significant amount of the book. The plaintiff was ready and willing to execute the work, but the defendant later decided not to move further with it and refused to pay the plaintiff any money.

• The defendant has refused to carry out his obligation under the contract, so it was decided that the plaintiff is entitled to the money.

Mann vs. Peterson constructions pvt. Ltd. [2019] HCA 32

This case is under the purview of Australia. The amount specified in the contract serves as a cap on the maximum compensation that an injured party may seek, according to the High Court of Australia's ruling in this case. In most jurisdictions (apart from India and Australia), a quantum meruit claim can exceed the amount specified in the contract, hence this ruling was divisive in the legal community. Therefore, albeit in different ways, we can say that Indian and Australian courts are in agreement when it comes to restricting a quantum meruit claim based on the contract.

Food Corporation of India & Ors vs Vikas Majdoor Kamdar Sahkari (2007)

Does the plaintiff demonstrate that they were chosen as the stevedoring contractor and granted clearance for shipment at Kandla Port in accordance with the tender? Does the plaintiff demonstrate that the plaintiff performed the transport and management of the cargo in accordance with the terms and conditions of the tender? Is the plaintiff entitled to the alleged increase in the rate from Rs. 108 per M.T. to Rs. 215 per M.T.?

• Can the plaintiff demonstrate that they were unloading more products than what was requested in the tender?

• Can the plaintiff obtain the money from the defendant as requested in paragraphs 12(A) and (B) of the plaint?

In any case, the Respondent has not proven any more expenses incurred by him for such additional discharge by evidence. Only the contractual rate of Rs. 108 per M.T., not the higher rate of Rs. 215 per M.T., was available to the Respondent. The contract had a clause requiring payment at the rate of Rs.108/− M.T. only, therefore the claim for an enhanced rate for additional quantities discharged in accordance with Sec. 70 of the Contract Act on the basis of quantum meruit would not be relevant.

Conclusion

In a legal vernacular, it is evident that the quantum meruit remedy must be fair and reasonable according to the law after a thorough review of it. The principle promotes the equality of the parties and works to ensure that if a person produces a good or service, he should benefit from the contract and, conversely, if he receives nothing, he can seek redress by bringing a lawsuit based on quantum meruit.

Frequently Asked Questions

Q: When can be a quantum meriut be claimed?

Ans: It is a defence based on the inferred quasi−contractual responsibilities. Only when the initial contract is discharged does the claim for quantum meruit become valid.

Q: What is the importance of Quantum Meruit?

Ans: The promise to pay a fair price for the labour and materials delivered, even in the absence of a written contract, is known as the law of quantum meruit. Quantum meruit, in layman's terms, simply refers to fair compensation.

Q: What type of remedy is quantum meruit?

Ans: Quantum Meruit is an equitable remedy.