Remedies-- Restitutionary Remedies

Question 1

When do restitutionary remedies come up?

Answer 1

1. bar: comes up when K is partially complete and then fails due to breach or unenforceable

Restitution occurs when a K has been partially performed and is BREACHED or UNENFORCEABLE

point is to make the partially-performing party whole

Question 2

Unenforceable contracts

Answer 2

1. K is unenforceable due to mistake, lack of capacity, statute of frauds, illegality, etc.
2. plaintiff gets restitutionary damages for the value of the benefit of property or services given to defendant
   i. the contract price is not a ceiling for recovery.
   a. If you do work on an unenforceable contract, and the value of the work is greater than envisioned, then you can get full value of the work even if it exceeds the k price.
   ii. i.e. the restitutionary damages for services provided can exceed the contract price for those services
3. plaintiff can get their property back if
   i. it is unique, or
   ii. ∆ is insolvent

Question 3

Breached contracts

Answer 3

4. if non-breaching party sues:
   i. same as unenforceable Ks
   ii. plaintiff gets restitutionary damages for the value of the benefit of property or services given to defendant, and K is not a ceiling (we’re trying to prevent unjust enrichment)
   iii. plaintiff can get their property back if it is unique, or if ∆ is insolvent
5. if breaching party sues: (ex. party puts down deposit then breaches)
   i. traditional view: no recovery
   ii. modern view: recovery is allowed
   a. recovery cannot be greater than the contract rate
   b. recovery reduced by any damages suffered by ∆ as a result of the breach (e.g. value of land went down)