Quantum Meruit - Situations

Situations

Contract law
Part of the common law series
Contract formation
  • Offer and acceptance
  • Posting rule
  • Mirror image rule
  • Invitation to treat
  • Firm offer
  • Consideration
Defenses against formation
  • Lack of capacity
  • Duress
  • Undue influence
  • Illusory promise
  • Statute of frauds
  • Non est factum
Contract interpretation
  • Parol evidence rule
  • Contract of adhesion
  • Integration clause
  • Contra proferentem
  • Title-transfer theory of contract
Excuses for non-performance
  • Mistake
  • Misrepresentation
  • Frustration of purpose
  • Impossibility
  • Impracticability
  • Illegality
  • Unclean hands
  • Unconscionability
  • Accord and satisfaction
Rights of third parties
  • Privity of contract
  • Assignment
  • Delegation
  • Novation
  • Third-party beneficiary
Breach of contract
  • Anticipatory repudiation
  • Cover
  • Exclusion clause
  • Efficient breach
  • Deviation
  • Fundamental breach
Remedies
  • Specific performance
  • Liquidated damages
  • Penal damages
  • Rescission
Quasi-contractual obligations
  • Promissory estoppel
  • Quantum meruit
Implied In Fact Contracts
  • Implied In Fact
Related areas of law
  • Conflict of laws
  • Commercial law
Other common law areas
  • Tort law
  • Property law
  • Wills, trusts and estates
  • Criminal law
  • Evidence

Quantum meruit is the measure of damages where an express contract is mutually modified by the implied agreement of the parties, or not completed. While there is often confusion between the concept of quantum meruit and that of "unjust enrichment" of one party at the expense of another, the two concepts are distinct.

The concept of quantum meruit applies to the following situations:

I. When a person hires another to do work for him, and the contract is either not completed or is otherwise rendered un-performable, the person performing may sue for the value of the improvements made or the services rendered to the defendant. The law implies a promise from the employer to the workman that he will pay him for his services, as much as he may deserve or merit.

The measure of value set forth in a contract may be submitted to the court as evidence of the value of the improvements or services, but the court is NOT required to use the contract's terms when calculating a quantum meruit award. (This is because the values set forth in the contract are rebuttable, meaning the one who ultimately may have to pay the award can contest the value of services set in the contract.)

II. When there is an express contract for a stipulated amount and mode of compensation for services, the plaintiff cannot abandon the contract and resort to an action for a quantum meruit on an implied assumpsit. However, if there is a total failure of consideration, the plaintiff has a right to elect to repudiate the contract and may then seek compensation on a quantum meruit basis.

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