ICAEW BL · Chapter 4 · Question 7 of 10
Corvan Ltd hires Isla to redesign its website for a fixed fee payable on completion. Halfway through, Corvan wrongfully tells Isla to stop work and refuses to pay anything. On what basis can Isla recover payment for the work she has done?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A quantum meruit claim for a reasonable sum for the work done
Explanation
Isla could not complete the work because of Corvan's breach. In that case the innocent party may claim on a quantum meruit, a reasonable sum for the work done (Planché v Colburn). The entire-performance rule does not help the party whose breach caused the non-completion. The full fixed fee was payable only on completion, and she can recover the value of her work, not just her expenses.
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