Suit for Quantum Meruit
Introduction
Sometimes a contract cannot be completed because one party breaches it, or because the contract later becomes void (legally unenforceable). In such situations, it may be unfair if the party who has already done part of the work receives nothing.
The law allows that party to claim reasonable payment for the work already completed. This remedy is called quantum meruit.
Meaning / Definition
The phrase quantum meruit is a Latin expression meaning “as much as is earned” or “payment in proportion to the work done.”
A suit for quantum meruit allows a person to claim reasonable compensation for services provided or work completed, even though the entire contract has not been performed.
This claim usually arises when:
- a contract is breached after partial performance, or
- a contract is discovered to be void (legally invalid), or
- a contract later becomes void, or
- one party accepts and enjoys the benefit of work done by another.
The claim may be made:
- instead of damages, or
- along with damages for the remaining unperformed part of the contract.
Situations Where Quantum Meruit Can Be Claimed
Work Done but Contract Prevented by the Other Party
If one party has performed part of the contract and the other party prevents further performance, the performing party may claim payment for the work already completed.
Contract Discovered to be Void or Becomes Void
If a contract is later discovered to be void (not legally valid) or becomes void after partial performance, a party who has already done work may claim payment.
However, this usually applies when the contract is divisible (the work can be separated into parts).
Work Done Without Intention of Free Service
If a person performs work without intending to do it for free, and the other party accepts and benefits from that work, the person performing the work can claim reasonable payment.
Claim by the Party Who Breached the Contract
In certain cases, even the party who committed the breach may claim payment for the part of the contract already performed.
However, two conditions must be satisfied:
- the contract must be divisible, and
- the other party must have accepted and benefited from the completed part.
Important Case Law
Planche v Colburn (1831)
Planche agreed to write a book chapter for a publication and was to be paid upon completion. He had completed a substantial portion of the work when the publisher cancelled the project.
The court held that Planche was entitled to reasonable payment for the work already done, because the publisher prevented completion of the contract.
Craven-Ellis v Canons Ltd
The plaintiff provided services to a company but later it was found that the contract had issues that made it invalid. However, the company had already accepted the benefit of his services.
The court held that the plaintiff could recover reasonable remuneration (payment) for the work performed under the principle of quantum meruit.
Ram Krishna v Rangoobed
In this Indian case, A ploughed B’s field with a tractor in B’s presence and with B’s knowledge. B accepted the benefit of the work but refused to pay.
The court held that A was entitled to reasonable payment, since the work was not intended to be free and B benefited from it.
Distinction Between Quantum Meruit and Damages
| Basis | Quantum Meruit | Damages |
|---|---|---|
| Meaning | Payment for work already done | Compensation for loss caused by breach |
| Purpose | To pay for value of services provided | To compensate the injured party for loss |
| Basis of claim | Value of work or service rendered | Financial loss suffered due to breach |
| When used | When contract is partly performed | When breach causes measurable loss |
Practical Example
A contractor agrees to construct a building for ₹10,00,000. After completing half the work, the owner stops the contractor from continuing the project.
Even though the contract is not fully completed, the contractor may file a suit for quantum meruit and claim reasonable payment for the portion of the work already completed.
Summary
- Quantum meruit means payment in proportion to the work done.
- It allows a party to recover reasonable compensation for partial performance of a contract.
- The claim usually arises when a contract is breached, discovered void, or becomes void.
- It can be claimed when one party prevents completion of the contract after part performance.
- It may also apply where work is done without intention of free service and the other party enjoys the benefit.
- Courts award compensation based on the value of the work actually performed.