Restitution

Question 1

When it arises

Answer 1

• Where money has been paid by one party to the other under a contract and there has been a complete failure of consideration.
• Where one party has done work for the other or supplied goods to the other and wants to be compensated for the work done or goods delivered

Question 2

What is restitution?

Answer 2

For the claimant to bring a restitutionary claim, the defendant must have been unjustly enriched at the expense of the claimant. A restitutionary remedy seeks to reverse that unjust enrichment, by restoring the relevant benefit or enrichment to the claimant.

Question 3

Recovery of money which has been paid where there has been a total failure of consideration

Answer 3

Total failure = where they’ve not done any part of what he was supposed to do under the contract or what has been done is completely useless. In these circumstances the payer can bring a claim in restitution to recover money paid

Question 4

Compensation for work done or goods supplied - Contract has been broken

Answer 4

The contract has been broken - if one party has supplied goods or done work for the other and the other party is in breach of contract the party supplying the goods/doing the work may be able to bring a claim in restitution for a reasonable sum for work done or goods supplied as an alternative to a claim for damages (quantum merit)

Question 5

Compensation for work done or goods supplied - A contract was never formed

Answer 5

A contract was never formed - a party may do work for another before a contract has been formed but expecting that a contract will come into existence - the law simply imposes an obligation on the party who made the request to pay a reasonable sum for such work as has been done pursuant to that request