Discuss the “Doctrine of Quantum Meruit”.

 

The Contract Act, 1872

 Discuss the “Doctrine of Quantum Meruit”.

Quantum meruit is a Latin phrase. The Black Law Dictionary states that quantum meruit means “as much as one deserves”. Quantum meruit involves cases where someone gets a benefit while the other party gets nothing. It means something along the lines of “reasonable value of services”. Quantum meruit is a legal action based on equitable compensation. It is an alternate remedy to an action on a contract which can be brought for partial performance. Procedurally, quantum meruit is the name of a legal action brought to recover compensation for work done and labour performed “where no price has been agreed.”

   Quantum meruit means payment in proportion to the amount of work done. Normally, one cannot claim performance from another unless one has performed his obligation in full. However, in some cases, anyone who has performed some work under a contract can claim remuneration for the work which he has already done. The right to claim on ‘quantum meruit’ does not arise out of contract as the right to damage does. It is a claim on quasi-contractual obligation which is implied by circumstances. In Puran Lal v. State of U.P., AIR 1971 SC 712 Supreme Court of India held that in order to avail the remedy of quantum meruit, the original contract must have been discharged by the defendant in such a way as to entitle the plaintiff to regard himself as discharged from any further performance and he must have elected to do so. The remedy is not available to the party who breaks the contract even though he may have partially performed part of his obligation. The remedy is restitutory, i.e. it is a recompense for the value of the work done by the plaintiff in order to restore them to the position which he would have been in if the contract had never been entered into.

   The action of Quantum Meruit is allowed in Bangladeshi Courts under Section 70 of the Contract Act 1872. It provides that where a person lawfully does anything for another person, or delivers anything to him, not intending to do so gratuitously, and such other person enjoys the benefit thereof, the latter is bound to make compensation to the former in respect of, or to restore, the thing so done or delivered.

    The several cases in which quantum meruit arise are as follows:

1.     In the case of void agreement or contracts that become void [Section 65 of the Contract Act, 1872].

2.     In the case of a divisible contract.

3.     In case of act preventing the completion of the contract.

4.     In the case of an indivisible contract performed completely but badly.

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LL.B Syllabus of all Universities

By Samarth Agrawal & Shreya Bhargava

Former Judges, U.P. Judicial Service

                                      First Edition: 2023; Volume 6, ISBN-978-81-958378-23

 Prepared By-

Nazmul Hasan,

Senior Judicial Magistrate at Bangladesh Judicial Service.

LL. B (Hons.) First Class First, University of Rajshahi

LL.M First Class, University of Rajshahi

11th BJS (Bangladesh Judicial Service), Merit Position-7th

Member of Youth Delegation Team to India, 2016.

Prime Minister Gold Medalist – 2017.

Bangabandhu Gold Medalist by Agrani Bank – 2023.

Former Executive Member of Rajshahi University Moot Court Society (RUMCS), (2015-2016)