In the legal world, there are situations where someone provides services or delivers goods without a fixed contract price or when a contract becomes invalid. In such cases, the person who performed the work still deserves to be paid for their effort. This idea is captured in the concept of quantum meruit, which literally means “as much as is deserved” or “as much as earned.”
In this article, we’ll explore the basic meaning, conditions, and use of quantum meruit in both Indian and foreign legal systems, using simple and clear language.
What is Quantum Meruit?
According to Anson, a well-known legal scholar, when a person has already done part of their work under a contract and the contract is breached, they can still ask to be paid for what they’ve already done. This claim is made on the basis of quantum meruit. In other words, it allows someone to receive payment for the portion of work completed, even if the full contract is not completed.
You can also read the Judgement of DK BASU V. STATE OF WEST BENGAL.
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Quantum Meruit and Unjust Enrichment
Quantum meruit is closely related to the idea of unjust enrichment. Unjust enrichment means one person unfairly benefits at another’s expense. Quantum meruit is the way courts provide a remedy for that. Just like courts award damages when a contract is broken, they award quantum meruit when someone is unjustly enriched. However, these two are not the same they just serve similar purposes in different legal situations.
There are two types of quantum meruit:
- Contractual Quantum Meruit – This is used when a valid contract exists, but the price for the work is not mentioned. The court then decides a fair amount to pay for the services.
- Restitutionary Quantum Meruit – This applies when there is no valid contract or the contract has ended, but the work has already been done. In such cases, the court orders payment based on the value of the benefit received.
Justice Deane, in the Australian case Pavey and Matthews Pty Ltd v. Paul, explained that restitutionary quantum meruit ensures fair and just compensation for the benefit someone else has received.
When Can You Claim Quantum Meruit?
Courts have laid down specific conditions for claiming quantum meruit. For example, in Heldenfels Brothers v. City of Corpus Christi, the following must be shown:
- Valuable services or materials were provided.
- These were given to the person being asked to pay.
- That person accepted them.
- The provider expected to be paid, and the receiver knew this.
In another case, Hermanowski v. Naranja Lakes, the court said the person receiving the benefit must have:
- Agreed to the services,
- Known the provider expected payment,
- And gained an unfair benefit.
Generally, quantum meruit applies in these situations:
- When a contract turns out to be void, but some work was already done.
- When one party stops working or walks away from a contract.
- When work is done with the expectation of payment, not for free.
- When the contract can be split into parts and part of the work has been accepted.
Quantum Meruit in Indian Law
In India, this concept is legally recognized under Section 70 of the Indian Contract Act, 1872. This section says that if a person does something lawfully for someone else, without wanting to do it for free, and the other person benefits from it, then the person who benefited must pay for it.
Two key things must be proved:
- The person who did the work didn’t mean to do it for free.
- The other person accepted and benefited from the work.
However, it’s important to note that just accepting the benefit doesn’t automatically mean there's a promise to pay. Also, the person who receives the service should have had a chance to say no—no one should be forced to pay for something they didn’t choose to accept.
Conclusion
Quantum meruit ensures fairness by allowing someone to be paid for work done or services provided, even if a contract does not exist or fails. It prevents one party from unfairly benefiting at the cost of another. Whether in Indian or foreign law, the doctrine balances the rights of both parties and ensures that effort and services are rightfully compensated. For law students and professionals, understanding quantum meruit is key to handling cases involving incomplete contracts, restitution, or unfair gain.
