Client v Contractor Part 3

Let’s take a break from the story, and look at the legal implications behind the situation.

Whenever work is done in response to request by a party, even without a written contract, the party providing the service/work is entitled to a quantum meruit claim. The expression quantum meruit basically means ‘the amount he deserves’ or ‘what the job is worth’. It is a claim for a payment for the work executed where no price has
been agreed or quantified, and usually a claim being assessed in a ‘reasonable sum’, ‘reasonable remuneration’, ‘fair market rates’, ‘fair commercial rates’ or on similar terms.

Read more on quantum meruit at: http://www.mbam.org.my/mbam/images/@ENTRUSTY%20-%20QuantumMeruit%20(100-103).pdf

In Adam and Joe’s situation, Joe must substatiate his claim by proving the total costs incurred and payments made by him in carrying out the works.

Another example is where a plumber has been called in by a house owner for an emergency repair and no price was agreed in advance. Upon completion, the plumber cannot simply take advantage of the situation and drop a bomb on the house owner. He is only entitled to a reasonable sum for such service, nothing more and nothing less.

Should Adam and Joe decided to sign a proper agreement right from the outset; they would have had a proper CONTRACT SUM which was agreed by both parties. In general, a contract sum would overrule quantum meruit claims. A contract sum can be below or above the fair market price and both parties has to honour it!

to be continued...