What Is Quantum Meruit In Contract Law?
Quantum meruit is a Latin phrase meaning “as much as deserved.” It’s a legal principle allowing someone to recover reasonable payment for services or goods provided, even without a formal contract. Understanding quantum meruit is essential when contracts fall through, are unclear, or never existed, but one party still provided valuable work or materials.
The Basic Concept
Quantum meruit allows you to claim reasonable compensation for work done or services provided when you can’t enforce a contract. It prevents unjust enrichment: one party benefiting from another’s work without paying for it.
When Quantum Meruit Applies
No Contract Exists
You provided services without a formal agreement, expecting reasonable payment. The other party accepted and used your services. No price was discussed or agreed upon.
Example: A contractor does emergency repairs on your property. No written contract exists, but you allowed the work and benefited from it. The contractor can claim quantum meruit for reasonable value of the work.
Contract Is Void or Unenforceable
A contract exists but is legally invalid due to lack of required formalities, failure to meet legal requirements, or being impossible to perform. Work was still done under the invalid agreement.
Example: A contract missing essential terms is unenforceable, but the service provider completed work. Quantum meruit allows recovery for the work’s value.
Contract Doesn’t Cover the Situation
The contract is silent on certain work performed, or circumstances changed requiring additional work beyond the contract scope.
Example: During a renovation, unexpected structural problems require extra work not in the original contract. If you directed this additional work, quantum meruit may apply for reasonable compensation.
Contract Was Breached
One party breached the contract, preventing completion. The non-breaching party can claim quantum meruit for work completed before the breach rather than pursuing full contract damages.
Example: You hire someone for a project, then wrongfully terminate them partway through. They can claim quantum meruit for work done rather than suing for the full contract price.
What You Must Prove
To succeed in a quantum meruit claim, you must establish several elements.
Services or goods were provided with specific evidence of what was done, materials supplied, or services rendered.
The other party requested or accepted the benefit either expressly asking for the work or accepting it knowing you expected payment.
The services had value demonstrating the work provided genuine benefit to the recipient.
You expected payment and the other party knew this: there was no intention to provide services for free and the recipient understood payment was expected.
The amount claimed is reasonable based on market rates.
How Quantum Meruit Differs from Contract Claims
Contract claims enforce specific agreement terms, recover the agreed contract price, and require proving the contract existed and was breached.
Quantum meruit claims seek reasonable value of services provided, apply when there’s no enforceable contract, and focus on preventing unjust enrichment rather than enforcing agreements.
Quantum meruit is an equitable remedy based on fairness, not a strict contractual right.
Defenses Against Quantum Meruit Claims
No request or acceptance: The defendant didn’t request the services and didn’t accept or benefit from them.
Services were gratuitous: The claimant provided services as a gift or favor, not expecting payment.
Valid contract covers the situation: An enforceable contract governs the relationship and should be enforced instead of quantum meruit.
No benefit received: The defendant gained no value from the services.
Amount claimed is unreasonable: The value claimed exceeds fair market value for the services.
Contact Pinto Shekib LLP, Your Toronto Breach Of Contract Lawyers
Pinto Shekib LLP handles contract disputes and quantum meruit claims. Contact us at 416.901.9984 or info@pintoshekib.ca.
