When the injured party has performed a part of its obligation under the contract before the breach of contract has occurred, he is entitled to recover the value of what he has done, under this remedy.

Where one party has absolutely refused to perform, or has rendered himself incapable of performing his part of the contract, he puts it in the power of the other party either to sue for the breach of it or to rescind the contract and sue the contract and sue on quantum meruit for the work actually done.                                                                                         

Quantum Meruit = “as much as earned”, as much as merited/deserved.

When a person has done some work under a contract, and the other party repudiates the contract, or some event happens which makes the further performance of the contract impossible, then the party who has performed work can claim remuneration for the work he has already done.

Illustration: A agrees to deliver B, 500 bags of wheat and when A has already delivered 100 bags, B refused to accept any further supply, and A can recover from B the value of wheat which he has already delivered.

Section 65 of the act lays down that when an agreement is discovered to be void or becomes void any person who has received any advantages under such agreement is bound to restore it. Or to make compensation for it, to the person from he received it.

Illustration: A pays B Rs.1000/- in consideration with B’s promise to marry C, A‘s Daughter. C is dead at time of the promise. The agreement is void, but B must repay A sum of Rs.1000/-

Section 70: 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, in the following cases:

1. When there is an express or implied contract to render services that but there was no agreement as to remuneration, in such circumstances

reasonable remuneration is payable i.e. Quantum Meruit.

• When the completion of the contract has been prevented by the act of the

other party to contract.

• When a contract is divisible and the party in default has enjoyed the benefit of the part performance, the party who performed the contract may sue on Quantum Meriut. If the contract is not divisible, the party who performed the contract cannot claim remuneration on the ground of Quantum Meruit.
• In case of void agreement or contract that becomes void Any person who has received any advantage under such

agreement or contract is bound to restore or to make compensation for it, to the person from or who received it.

Ex: – 1)A gives B Rs.10000 to marry C (A’s daughter). C died at the time of/before the time of performance of contract – B must repay A, Rs.10000/-.

Ex. 2)A agreed to deliver B 250 quince of rice before the 1^st of May. A delivers 130 quintals only, before that day and none after. B retains 130 quintals after the first of May. He is bound to pay A for them.

b.   In case of Act preventing the completing of contract: –

If a party does not complete the contract or prevents the other party to complete the contract, the aggrieved party can sue or quantum meruit.

Ex: – Owner- P write a book to be published as series in his magazine. After a few series were published the publication of the magazine was stopped. It was held that P could claim payment on quantum meruit for the part already published.

c.   In case of divisible contract: –

1. If the contract is divisible and
2. If the party not at default has enjoyed benefit of the point performance
3. The contract is partly performed.

If the above condition is satisfied, the party at fault may claim the payment on quantum meruit for the part of contract performed by him. He can recover such proportion of the contract price, as the work done

by him/bears to the work under the contract.

• In case of indivisible contract performed completely but badly. Contract is indivisible

Lumpsum consideration Completely performed Performed badly

That party at fault may recover the contract price (Lumpsum price) less the deduction made for the work done badly.

Ex: – X agreed to decorate Y’s flat for a lumpsum of Rs.20,000/-.  X did the complete work but Y complained of faulty work. Y stopped the work. It costs Y another Rs.3000/- to remedy the defect. X could recover only Rs.17,000/- from Y.

e.   In case of Non-gratuitous Act – Three conditions-

1. The thing must have been done or delivered lawfully
2. The person who has done or delivered the things must not have intended

to do so gratuitously; and

1. The person from whom the act is done, must have enjoyed the benefit of

act.

Ex: A, a tradesman leaves goods at B’s shop, by mistake. B treats the goods a his own. He is bound to pay A for them.