What is "quantum meruit" in contract law?

Quantum meruit is a legal principle that allows a party to recover the value of services rendered when a contract is unenforceable, often due to the lack of a formal agreement or failure to meet certain legal requirements. This principle is particularly important in situations where a party has provided services or materials to another party with the expectation of being compensated, but where a legally enforceable contract does not exist.

In Texas contract law, quantum meruit provides a remedy that prevents unjust enrichment, ensuring that one party does not unfairly benefit at the expense of another. Essentially, if someone has provided a benefit to another party, quantum meruit allows them to seek compensation based on the reasonable value of that benefit, even if there was no formal contract in place.

This concept is applicable in various contexts, such as construction projects where work may have commenced prior to a contract being finalized or in service agreements where oral contracts are not enforceable under the statute of frauds. Thus, the recovery is based on the actual value of the services provided rather than any prior agreement.

The other options discussed either misinterpret the role of quantum meruit by suggesting it pertains to evaluating the market value of contracts or enforcing oral contracts, which do not accurately reflect the principle's function in preventing