Farnsworth on Contracts · Restitution
This chapter explores the fundamental principles of restitution in contract law, including when and how restitution applies and its relationship to other remedies.
Source: Farnsworth on Contracts
Restitution is a legal principle aimed at preventing unjust enrichment by allowing a party to recover benefits conferred on another party without a legal basis. This section outlines the foundations of restitution, including its purpose of restoring the injured party to their pre-contractual position.
Restitution is available in various contexts, such as when a contract is void, voidable, or breached. The section discusses the distinct scenarios under which restitution can be claimed, stressing the importance of a party's lack of fault in obtaining an enrichment.
This section details how damages for restitution are measured, focusing on the benefit conferred to the defendant rather than the loss incurred by the plaintiff. It emphasizes the differing standards of compensation applicable in restitution cases compared to traditional contract damages.
This part addresses possible defenses that defendants can raise against restitution claims, including the idea that a party may have a legitimate reason for retaining the benefit received. Concepts like consent and equitable defenses are discussed as potential barriers to an award of restitution.
The final section differentiates between restitution and other contractual remedies such as damages and specific performance. It clarifies how restitution serves as a distinct remedy focused on fairness and preventing unjust enrichment, rather than compensation for loss.
A legal principle that prevents one party from benefiting at the expense of another without compensating them.
A Latin term meaning 'as much as he has deserved,' used in claims for the value of services rendered.
A contract that has no legal effect and cannot be enforced by either party.
Restitution often appears on exams in the context of identifying when unjust enrichment applies and distinguishing between the various remedies available. Students may be asked to analyze fact patterns to determine if restitution is a proper remedy based on the principles outlined in this chapter.