Quantum MeruitQuantum Meruit
1. Meaning of Quantum Meruit
Quantum Meruit is a Latin term that literally means “as much as he deserves”.
It refers to a claim for payment for services rendered or work done when no contract exists, or when a contract is partially performed, or when a contract is invalid or unenforceable.
The principle ensures fair compensation for the work done.
2. Legal Basis
In India, Quantum Meruit is governed by the Indian Contract Act, 1872, particularly under Sections 68–70.
It applies where a person lawfully performs services for another, expecting payment, and it would be unjust for the other to retain the benefit without paying.
3. Conditions for Quantum Meruit
A person can claim Quantum Meruit if the following conditions are satisfied:
Work is done: Some work or service must have been rendered.
Expectation of payment: The person performing the work did so with the expectation of being paid.
Partial or no contract: Either no contract exists, or a contract exists but is void, unenforceable, or partially performed.
Unjust enrichment: The recipient of the service would be unjustly enriched if they didn’t pay.
4. Application
Partially performed contract:
If a contract is terminated or incomplete due to the other party’s fault, the performer can claim payment for the work done.
No contract:
Even without a contract, a person who provides useful services may claim reasonable compensation.
Void/unenforceable contract:
If a contract is illegal or void, but work was done before its invalidation, Quantum Meruit can be claimed.
5. Case Laws
Chinnaya vs Ramayya (1882) 7 Mad 98
A contractor who partially completed construction before the contract was terminated claimed payment.
The court allowed payment on a quantum meruit basis for work done.
P. N. Bhagwati vs Union of India (Illustrative of Indian principle)
Work performed without a formal contract may still attract fair compensation under Quantum Meruit.
Hind Construction vs State of Kerala (AIR 1980 Ker 45)
Court held that partial work done under a contract is payable on a quantum meruit basis when the contract is terminated unjustly by the other party.
6. Difference Between Quantum Meruit and Contractual Payment
| Feature | Quantum Meruit | Contractual Payment |
|---|---|---|
| Basis | Work done / services rendered | Terms of contract |
| Requirement | No valid or complete contract needed | Valid contract must exist |
| Payment | Reasonable value of work | As agreed in contract |
| Remedy | Equitable principle | Legal principle |
7. Summary
Quantum Meruit ensures fair compensation for work done even when no enforceable contract exists. It prevents unjust enrichment and is based on the principle of equity and justice.
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