Mahkamah merujuk kepada kes Tanjung Teras Sdn Bhd v. Kerajaan Malaysia [2015] 9 CLJ 1002 yang menerangkan asas perundangan bagi seksyen tersebut. Mahkamah Rayuan di dalam penghakimannya memutuskan: “Juristic Basis Behind S. [31]Section 71 is the statutory embodiment of the common law principle of quantum meruit, which provides for a just compensation as the measure of the work done as opposed to contractual damages (see: Siow Wong Fatt, Craven-Ellis v. Cannons Ltd [1936] 2 KB 403, Delpuri-Harl Corp JV Sdn Bhd v. Perbadanan Kemajuan Negeri Selangor [2014] CLJU 1075; [2014] 1 LNS 1075; Spatial Ventures Sdn Bhd v. Twintech Holdings Sdn Bhd [2013] CLJU 729; [2013] 1 LNS 729; [2014] 8 MLJ 14). [32] Liability under s. 71 is not based on any existing contract between the parties. Rather it is based on the equitable principle of conscionable conduct and restitution to prevent unjust enrichment by one party at the expense of another party (see: Ramkrishna Shankarrao v. Rangoobai and anr AIR [1959] Bom 519; (1958) 60 BOMLR 459, Abu Mohammed v. Mohammed Kunju Lebba (1995) DMC 316 and Pallonjee Eduljee and Sons v. the Lonavala City Municipality AIR [1937] Bom 417; (1937) 39 BOMLR 835). [33] In Craven-Ellis v. Cannons Ltd, it was held that: The obligation to pay reasonable remuneration for the work done when there is no binding contract between the parties is imposed by a rule of law and not by an inference of fact from the acceptance of service. [34] In Ramkrishna Shankarrao v. Rangoobai, it was held as follows: JA-A52NCvC-15-01/2024 Alasan Penghakiman 11 From a bare reading of the section it is clear that even if there is no contract for the performance of certain work and if the Plaintiff has done that work, without intending to do that work gratuitously, and the Defendant has enjoyed the benefits thereof, then the Defendant is bound to compensate the Plaintiff in respect of such work. The equitable principle underlying Section 70 of the Contract Act is that there should be no undue enrichment of one party at the cost of another. It is based on the principle of restitution which prevents unjust enrichment by one party…”