Quantum Meruit – Still A Valid Remedy For Contract Repudiation

When a contract is repudiated by a principal, the contractor has two remedies available to it at common law. The first is a claim for contractual damages. The alternative is a claim on quantum meruit.

It is often the case that a claim brought on quantum meruit (a remedy which provides for payment of the reasonable value of the services performed) will yield a higher monetary figure than one for contractual damages. In the case of Renard Constructions (ME) Pty Ltd v Minister for Public Works¹ the Court noted that there did not appear anything anomalous in the fact that either remedy may yield a higher monetary figure than the other. Nor was it anomalous that a claim on quantum meruit may exceed or, in some cases, be far in excess of any profit that would have been made on the contract, should it have been brought to completion.