Quantum meruit is a contract law principle used to determine compensation for services performed when there is no express contract in place, or if the contract fails to provide a remedy. Often referred to as a “quantum of compensation,” quantum meruit is derived from Latin – quantum (“as much”) and meruit (“earned”).
In today’s digital world, services are often delivered without a fully-executed contract. Oftentimes, the parties are still working on the details of a contract when services have already been rendered. This is where quantum meruit comes into play.
If work has been performed in the absence of an enforceable contract, a judge may use the principle of quantum meruit to determine how much, if any, the recipient of the services should pay for what has been provided. When it comes to services, quantum meruit governs the reasonable value that the parties agree to for services rendered.
Quantum Meruit Example
Let’s say, for example, that a freelance photographer and a magazine enter into a verbal agreement for a photoshoot services. The photographer arrives at the magazine headquarters, sets up their equipment, and begins taking photos. But halfway through the shoot, the magazine’s editor stops the photographer and explains that the agreed-upon compensation is too low, and the deal is off. In this instance, the photographer may be able to recover compensation for their work under quantum meruit, without ever having to prove the existence of a written contract.
Final Takeaway
In summary, quantum meruit is a legal principle that is used to determine compensation for services performed when there is no express contract in place, or if the contract fails to provide a remedy. By protecting both service providers and recipients in an absence of contract, quantum meruit plays an important role in keeping contracts and services from becoming messy or complicated in situations where one or both parties are not sure of the terms.