DIFFERENCE BETWEEN QUANTUM MERUIT AND QUASI CONTRACT

This query is : Resolved

Catherine (Querist)
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26 November 2021 Dear Sir/Madam,
Clarification required :
Kindly explain the above two in layman term with examples.
Thanks in Advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 November 2021 Quasi contract is not actually a contract but a contract implied in law. It came into existence to prevent the enrichment of one person at the cost of other (theory of unjust enrichment). If A has conferred certain benefits on B, then B has to pay something to A, otherwise he cannot be permitted to retain the benefit. If B retains it without making any payment to A, then it will be termed as unjust enrichment. In such circumstances, in order to provide relief to the conferrer, the court, even in the absence of an actual contract, may imply a contract in law and restore the benefit or its value to the conferrer.

A claim on the basis of quantum meruit will arise out of a situation which, for one reason or another, involves an element of uncertainty as to the amount due to the contractor. In general, a claim for quantum meruit indicates that there is no contract between the parties in respect of the specific work/services that have been performed and for which the claim is being made—even though there may be a contract between them in respect of other related/associated works.

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