Quantum Meruit

Definition:
Quantum Meruit is a Latin term that means "as much as he has deserved" or "as much as is deserved". It is a legal principle that allows a person to claim a reasonable amount of compensation for services or work performed, even if there was no formal contract in place or the contract was not completed.

Claim for Quantum Meruit arises in the following cases:
1. Implied Contracts: When a person performs services for another without any express agreement, but it can be implied from the circumstances that payment would be made, a claim for quantum meruit can arise.
2. Partial Performance: If a contract is partially performed by one party, but the other party fails to fulfill their obligations, the party who performed can claim quantum meruit for the work done.
3. Frustration of Contract: When a contract becomes impossible to perform due to unforeseen circumstances, and one party has already partially performed their obligations, that party can claim quantum meruit for the work done.
4. Unauthorized Work: If a person performs work on another's property without their consent, but the work is necessary and beneficial to the property owner, the person who performed the work can claim quantum meruit.

Contingent Contract

Definition:
A contingent contract is a contract that depends on the occurrence of a specific event that may or may not happen in the future. The rights and obligations of the parties are contingent upon the happening or non-happening of the event.

Example:
A enters into a contract with B to sell a piece of land if it rains tomorrow. If it rains tomorrow, the contract becomes enforceable, and A is obligated to sell the land to B. However, if it does not rain, the contract becomes void, and neither party has any obligations.

Rules relating to enforcement of a contingent contract:
1. Contingency must be uncertain: The event on which the contract depends must be uncertain at the time of contract formation. If the event is certain to happen or not happen, the contract is void.
2. Contingency must be collateral to the contract: The event must be collateral to the contract, meaning it should not be the main purpose of the contract.
3. Contingency must be possible: The event must be possible to happen. If the event is impossible, the contract is void.
4. Contingency must be within the control of neither party: The happening or non-happening of the event must be beyond the control of both parties. If either party has control over the event, the contract is void.
5. Obligations become void if the event does not happen: If the event does not happen, the contract becomes void, and neither party has any obligations towards each other.
6. Rights accrue if the event happens: If the event happens, the contract becomes enforceable, and the parties' rights and obligations are determined accordingly.
7. Compensation for non-performance: If one party has already performed their obligations under a contingent contract, and the event does not happen, they are entitled to compensation from the other party. This compensation is determined based on quantum meruit principles.