LEGAL PRINCIPLE: CONTRACT LAW — Quantum Meruit — Restitutionary Claim Available Upon Repudiatory Breach
PRINCIPLE STATEMENT
If an innocent party has rendered services under a contract not fully performed and determined due to defendant's repudiatory breach, he may sue for damages or bring a restitutionary claim to recover the value of services rendered on a quantum meruit.
RATIO DECIDENDI (SOURCE)
Per Uwaifo, JSC, in Savannah Bank of Nigeria Plc v. Opanubi (2004) NLC-1542000(SC) at p. 12; Paras A–B.
"If an innocent party has rendered services (or has supplied goods) under a contract, which has not been fully performed and which has been determined by him because of the defendant's repudiatory breach of contract, he may sue for damages for loss arising from the breach of contract or bring a restitutionary claim to recover the value of the services rendered or the goods supplied, on a quantum meruit (or a quantum valebat)."
EXPLANATION / SCOPE
Repudiatory breach entitles innocent party to claim quantum meruit for services rendered. This is a restitutionary claim alternative to damages. The principle applies to contract law. The rule allows recovery for partial performance where contract is terminated. The innocent party need not complete the contract. The value of services actually provided is recoverable, not expected profit.
