Quantum Meruit

My students asked me what is meant by quantum meruit payments. Simply pu it means amount deserved. It generally applies to claims for a reasonable amount reflecting the cost of carrying out the works or providing goods or services or both.

A quantum meruit claim cannot be made if there is a contract between the parties to pay an agreed amount. Quantum meruit arise where parties have failed to agree to a price, or where a party have carried out work in the reasonable expectation of a contract being formed, but where agreement have never been reached as in cases of design and built work based on letter of intent. The latter situation is often referred to as falling within the law of restitution, or the doctrine of unjust enrichment.

The law of restitution ensure payment of reasonable price for goods or services rendered on circumstances where it is unjust to allow one party to be enriched at the expense of the other, and where the goods or services have been freely accepted.

The issues in quantum meruit can be highlighted in the recent case of Mowlem vPHI Group Ltd
where it was held that also Mowlem did supply materials to PHI but since these materials did not meet the specification ane were subsequently rejected, their claim should fail.