What are Quantum Meruit Claims?

Quantum Meruit

Quantum meruit is a Latin phrase which translates to “as much as he deserved.” It is a legal term used to describe when an implied or express contract has been breached, but services have still been provided. The person providing the services is then entitled to be paid for those services on the basis of quantum meruit. This concept of quantum meruit does not demand that the person who rendered the service prove any form of the agreement prior to being given payment for the work done. All that needs to be proven is that some type of service was provided and that this service was accepted by the other party. This principle can be applied in situations where verbal agreements were made but never formalized, in cases involving broken contracts or jobs completed beyond what had originally been agreed upon, and in many other scenarios.


Law of Quantum Meruit In Ontario

The law of quantum meruit in Ontario is governed by the courts and legislation such as the Sale of Goods Act, the Courts of Justice Act, and the Contract Law Amendment Act. Under the law of quantum meruit in Ontario, when a party provides services or goods to another party without a contractual agreement, they are entitled to be compensated for their efforts on the basis of quantum meruit.

In order for this claim to be valid, it must be proven that there was some form of the consideration provided by one party and that this service or good was accepted by the other party. This can be shown through evidence such as verbal statements made by both parties, emails or other correspondence between them, and any other type of tangible proof. Furthermore, it must be determined that an implied contract existed due to something like estoppel where one party’s reliance on another had been reasonable. Finally, it must also be established that the claimant had acted with reasonable skill and diligence in providing these services or goods.


Elements of a Valid Quantum Meruit Claim In Ontario

In order for a valid quantum meruit claim to be made in Ontario, there are various elements which must be present. Firstly, it must be established that there was an implied agreement between the parties regardless of whether a formal contract was ever established. This can be demonstrated through evidence such as verbal statements made by the parties or emails and other correspondence between them.

Additionally, it must also be determined that one party’s reliance on the other had been reasonable, likely through some form of estoppel. Secondly, consideration needs to have been provided from one party to the other. Consideration is any type of service or good which has been accepted by both parties and does not necessarily need to involve money. It must be established that the claimant exercised reasonable skill and diligence when providing goods or services in order to benefit from the above mentioned exceptions.


Statutory/Common Law Exceptions to Onending Liability on Quantum Meruit Claims

Individuals engaging in contractual agreements in Ontario may benefit from legal exceptions that can safeguard them from liability associated with quantum meruit claims. According to the Sale of Goods Act, potential buyers may not be obligated to pay if they were misled about quality, didn’t take delivery of items, or payment wasn’t due at the time of delivery. In addition, under the Courts of Justice Act, people performing their contractual obligations will likely be protected from any damages caused unintentionally.



Finally, under the Contract Law Amendment Act, any non-performance by one party does not entitle them to retain monies already paid by the other party and must also indemnify them against any loss resulting from their own negligence or intentional misconduct.


Determining Damages for Quantum Meruit Claims in Ontario

When bringing a quantum meruit claim in Ontario, it is important to determine the extent of damages that can be awarded. Generally, the court may award damages which cover the reasonable value of services or goods provided by one party to the other. To make this determination, factors such as the nature and quality of goods or services involved, any industry standards which apply, and any relevant market prices may be taken into account.

Additionally, any expenses incurred directly resulting from the breach in the contract may also be taken into consideration when determining damages for a quantum meruit claim in Ontario. These expenses may include costs associated with attorneys’ fees and court costs incurred during legal proceedings.


How To Make A Quantum Meruit Claim Success

There are a number of steps which should be taken by those seeking to make a successful quantum meruit claim in Ontario.

It’s essential to ensure the right documentation of any goods and services exchanged, creating an accurate record of any financial transactions involved. This can act as proof of the value handed over between the parties should a quantum meruit claim arise.

It’s also important to understand what Ontario statutes and common law decisions concerning quantum meruit claims are in order to identify potential defences or liability limits. Knowing this will also help determine what kind of damages could be awarded in court.

Last but not least, both parties should consult with legal counsel beforehand to make sure they know their rights and obligations under contract law.


How to calculate compensation for a quantum meruit claim

When determining the amount of compensation for a quantum meruit claim in Ontario, multiple factors must be taken into account. This includes the reasonable value of services or goods provided, industry standards, relevant market prices, and any expenses incurred due to any breach of contract. Be sure to contact us today for more information and a free initial consultation at 905-366-0202 or through our website.



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