Quantum Meruit Meaning and Definition with Illustration
The meaning of the word 'Quantum' is 'Amount' and the word 'Meruit' (which is derived from Latin) is 'Earned'. The action of 'Quantum Meruit' is allowed in Indian Courts under Section 70 of the Contract Act 1872.
The phrase "Quantum Meruit" literally means "as much as earned or deserved" or "according to the quantity of work done". When a person has begun the work and before he could complete it, the other party terminate the contract or does somethings which make it impossible for the other party to complete the contract, he can claim for the work done under the contract. He may also recover the value of the work done where the further performance of the contract becomes impossible or prevents him from performing the remaining work.
Illustration :
'A', a person who gave contract to 'B' for build a house. Duration for construction of house 3 month. The contract price of work was 50 lakh.
'B' started to construction and completed 50% of the work. That means he completed half of the work and then 'B' say to 'A' that he completed 50% of the work but he do not able to completely fully. So he stop to hear and suggest to 'A' that find some another contractor, who can carry on work from here and also he demand 25 lakh for his work, which he done. In that case is 'A' to give credit 'B' for his work ? Is 'B's contention is correct ? In that case 'B's contention would be availed.
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Although 'B' breach the contract but he can claim his work according to quantity of work done.