Explain the conditions which are required to be fulfilled under section 70 of the Indian Contract Act, 1872 for a court to allow compensation under the principle of Quantum meruit.

CS Professional · Drafting, Pleadings and Appearances · PYQS · June 2024
Explain the conditions which are required to be fulfilled under section 70 of the Indian Contract Act, 1872 for a court to allow compensation under the principle of Quantum meruit.

Answer & Explanation:

Compensation under 'quantum meruit' is awarded for the services rendered by the contractor when the payment thereof is not fixed by the contract. 'Quantum meruit' is a right which arises outside a construction contract. A 'quantum meruit' claim arises, where work is done or services rendered by the contractor for the employer or owner, in circumstances which entitle the party doing the work or rendering the services to receive a reasonable additional remuneration, the situation being one where either there is no contract or there is a contract but the particular situation is not covered under that contract. The three conditions under section 70 of Indian Contract Act, 1872 are as follows: The first condition is that the claimant should either lawfully do something for another person or deliver something to him. The second condition is that while doing or delivering something, the claimant must not be acting gratuitously; and Thirdly, the person for whom something is done or to whom something is delivered must enjoy the thing done for or delivered to him as the case may be.

Topics: Contract Law

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