Write a note on Quantum Meruit.
The term quantum meruit means as much as merited or as much as earned. In other words, it refers to the payment in proportion to the amount of work done. The general rule states that unless a person has performed his obligations in full, he cannot claim performance from other. In certain cases, where a person who has performed some work under a contract, can claim remuneration for the work already done by him. The right to claim on ‘quantum meruit’ does not arise out of the contract unlike the right to damages does. The law implies in the circumstances of the quasi contractual obligations. Section 70 of the Indian Contracts Act allows the action of ‘Quantum Meruit.
Quantum Meruit arises in the following cases:
When a contract is discovered to be unenforceable: When an agreement is discovered to be void or becomes void, so any person who has received any advantage under such agreement or contract is bound to restore the same or make compensation for it to the person from whom they had received it.
When one party abandons or refuses to perform the contract: The aggrieved party is entitled to claim reasonable compensation for the act performed by him under the contract in case of breach of contract.
When a contract is divisible: In case the contract is divisible and the party not in default has enjoyed some benefit of the part performance then the default party may sue on quantum meruit, but cannot claim compensation.
When an indivisible contract is completely performed but badly: When the indivisible contract for lump sum is completely performed however badly, then the person who has performed can claim the lump sum less deduction for bad work.