The term Quantum
Meruit means ‘as much as earned’. It implies ‘a payment deserved by a person
for the reason of actual work done’. The use of this term is made majorly in
reference to the Contract Act, 1872. This is one of the remedies for the breach
of a contract. It means that the other party who has received the services is
unjustly benefited and must return it to the party who provided such benefit.
When a party has
done some work under a contract, and the other party repudiates the contract or
somehow the full performance of the contract becomes impossible, then the party
who has done the work can claim remuneration for the work under the suit for
quantum meruit.
In the case of Cutter
v. Powell,
the
defendant agreed to pay Cutter 30
guineas for acting as second mate aboard a vessel plying between Jamaica and
Liverpool. Cutter died when the vessel was nineteen days short of Liverpool.
The contractual note read as
follows.
“Ten days after the ship Governor Parry, myself master, arrives
at Liverpool, I promise to pay to
Mr. T. Cutter the sum of thirty guineas, provided he proceeds,
continues and does his duty as second mate in the said ship from hence to the
port of Liverpool. Kingston, July 31st, 1793”
His widow could recover nothing
in respect of the work he had performed during the previous 49 days of the
voyage.
Also, in the case of Sumpter v. Hedges, where
the contract was with regards to the construction of two houses, the Court had
held that a person can only recover a part of his work when the contract is not
a lump sum and the owner freely accepts the work. Hence, quantum meruit was not
granted and the plaintiff had to accept the work because he had no choice.
Where a person agrees to do something
for a lump sum, he can normally only sue for payment if the work is substantially
performed; the courts will not imply a contract in favour of a plaintiff who
has made an express agreement and failed to perform it (rule).
No one should be entitled to claim payment unless he has done what he has
bargained to do.