Key points
- Section 71 requires compensation for non-gratuitous work or goods that the other person enjoyed.
- Courts can imply a reasonable price.
- Sections 66 and 73 cover void agreements and mistaken payments.
- Evidence of the request, the work and its value is essential.
- Claim within the limitation period.
You renovated a shop on a handshake. A client asked for extra features "and we'll sort out the price later". A friend's company used your consultancy for months. Now they refuse to pay because "there was no agreed price". Malaysian law can still require payment.
Section 71: non-gratuitous acts
Under section 71 of the Contracts Act 1950, where a person lawfully does anything for another, or delivers anything to them, not intending to do so gratuitously, and the other person enjoys the benefit, the other person must make compensation, or restore the thing.
You must show:
- you did the work or delivered the goods lawfully;
- you did not intend it as a gift; and
- the other party enjoyed the benefit.
Quantum meruit and implied terms
Where there is a contract but no price, the court may imply a term to pay a reasonable sum. Where work was done outside the scope of a contract at the other party's request, a reasonable sum may also be recoverable. This is often called a claim on a quantum meruit, meaning "as much as was earned".
Related routes
- Void agreements: where an agreement is discovered to be void, or a contract becomes void, a person who received an advantage must restore it or make compensation (section 66).
- Mistake: money paid or things delivered by mistake or under coercion must be repaid or returned (section 73).
- Written evidence: even informal messages can prove an agreement; see claiming a debt without a written agreement.
Have a question about your own situation? Ask on WhatsApp
Proving the value
- Your usual rates, quotations to others, and market rates.
- Time sheets, materials receipts and photos of progress.
- Expert evidence from a quantity surveyor or valuer where needed.
- Messages showing the other side requested and accepted the work.
Limits
- If the contract fixed a price, you usually cannot claim more on a reasonable value basis for the same work.
- If you intended the work as a favour, section 71 does not help.
- Claims are generally subject to the six-year limitation period under the Limitation Act 1953.
Example
A Kota Bharu electrician installs extra lighting and wiring at a client's restaurant, requested by WhatsApp during the original job, with no price agreed. The client pays for the original quote only. The electrician claims a reasonable sum for the extras, relying on the messages, photos and his standard rates.
Common mistakes
- Doing extra work without written confirmation of the request.
- Not keeping records of time and materials.
- Inflating the value.
- Waiting years to claim.
When to speak to a lawyer
When a client refuses to pay because no price was agreed. See civil litigation, our debt recovery guide or contact us.
Frequently asked questions
Can a small claim go to the Magistrates' Court?
Yes, depending on the amount. Lower courts have monetary limits on their jurisdiction.
What if the client says the work was bad?
Defects may reduce the reasonable sum, or give the client a counterclaim. Evidence of quality matters.
Does a verbal agreement count?
Yes. A contract can be made verbally, but its terms are harder to prove.
Sources & fact check
Legal points in this article were checked against the primary sources below. The law can change; this is general information, not legal advice.
- Contracts Act 1950 (Act 136), AGC Laws of Malaysia
- Limitation Act 1953 (Act 254), including section 6, AGC Laws of Malaysia
- Rules of Court 2012 (P.U.(A) 205/2012), text published by the Malaysian Bar, including Orders 12, 13, 18, 19 and 93
Fact-checked on 17 Oct 2026
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Related practice area: Civil litigation and debt recovery

