Steven v Bromley & Son [1919]. Facts Shipowners agreed a charter fee for the transportation of steel billets The charterers loaded general merchandise, in breach of the agreement Issue Could the ship owners be entitled to nominal damages only; or could a contract be inferred at a higher rate Decision Claim for beyond nominal damages allowed Reasoning A contract could be inferred such that the shipowners were entitled to the general rate for the ‘breaching’ cargo loaded. II. Person A (plaintiff in this hypothetical) tells neighbor B (defendant) that he is going to build a wall on their property that will give a benefit to both A and B; A implies that it would be cheaper for both of them if A performs the labor instead of hiring a professional. B agrees that the wall should be built, but no price is negotiated. A builds the wall, and then asks B to compensate him for the benefit of the wall that he conferred on B (usually half the value of the wall). B refuses. A is entitled to some compensation based on quantum meruit. This is because there was an implied promise between A and B, which is derived from contract law, because A was acting under the assumption that B would pay for part of his services (see Estoppel). The winning of the case, or damages that would be agreed in any out of court settlement, will be directed as an assumpsit on a quantum meruit. Day v. Caton, 119 Mass. 513 (1876). In Canada, quantum meruit is not based on contract law but rather depends on equitable principles of unjust enrichment. The old maxim: estoppel allows an implied promise to act as a shield against litigation but never a sword is in general upheld in Canadian law. Therefore an implied promise would not create a cause of action. Instead quantum meruit is based on the need to prevent the neighbor from unjustly enriching himself by allowing the fence builder to proceed with the work based on an assumption that he would be compensated. III. Quantum meruit can also apply where there is a breached contract. A contractor is contracted to work on a school. He does some work but then quits (breach of contract). He is entitled to be paid for the services he has already provided for the school on the basis of quantum meruit (however the