Meaning
Restitution principles provide a way to determine fair payment for services rendered when no specific price was agreed upon. Quantum meruit ensures that a person is compensated for the value of their labor to prevent unjust enrichment. It measures the objective worth of work performed.
Fairness Recovery
Equitable principles dictate that a person should not receive a benefit from another’s labor without paying for it. When quantum meruit is applied, the law implies a promise to pay the reasonable value of the services. This principle is often used when a contract is found to be invalid or when work was done outside the scope of an existing agreement.
Determining Value
Calculating the fair market rate for the work involves looking at the local standards for similar tasks. A claim for quantum meruit requires evidence of what a person in that role would typically be paid. This calculation avoids the cost of arbitrary pricing and ensures that the compensation is defensible.
Benefit Receipt
The claim only holds if the party being asked to pay actually received a useful service. Quantum meruit stops being a viable path for recovery if the work was performed without the knowledge or consent of the recipient. The founder must be aware of the work being done to be held responsible for its cost.
