Restitution Flashcards
1
Q
Restitution - Basic Concept
A
- based on preventing unjust enrichment when one has conferred a benefit on another without gratuitous intent
- can provide remedy not only for breach, but also where K is unenforceable, + sometimes when no contractual relationship exists
2
Q
Terminology
A
- action to recover restitutionary damages is often referred to as an action implied in law K, an action in quasi-K, or an action for quantum meruit
3
Q
Restitution - Measure
A
- generally the value of the benefit conferred
-> usually based on benefit received by def
-> but may be measured by “detriment” suffered by pl (ex: reasonable value of work performed/services rendered) if benefits difficult to measure
4
Q
Restitution - When K Breached
A
- nonbreaching party may choose to cancel K if they haven’t fully performed -> can sue for restitution to prevent unjust enrichment
- if pl has fully performed though, they’re limited to damages under K
-> may be less than they would’ve received in restitution, since restitution not limited to K price
5
Q
“Losing” Ks
A
- restitution often desirable remedy on a “losing” k (one in which actual value of services/goods is higher than k price)
-> b/c normal k expectation damages/reliance would be for lesser amount
6
Q
Breach by Pl
A
- in sme circs, pl can seek restitution even though pl breached
- if breach was intentional, some cts won’t grant restitution
- BUT modern cts will permit restitutionary recovery but limit it to K price less damages incurred as result of breach
7
Q
Breach by Buyer - Restitution of Advance Payments or Deposit
A
- if buyer has paid part of purchase price in advance + breaches K, can usually recover some payments
- unless seller can prove greater damages, buyer can keep advance payments totaling 20% of purchase price or $500, whichever less
- balance must be returned to buyer
- if there’s a valid liquidated damages k, seller need refund only excess of buyer’s payments over amount of liquidated damages
8
Q
Restitution - When K Unenforceable
A
- restitution may be available in quasi K when K made but unenforceable + unjust enrichment otherwise would result
-> ex: one irreplaceable party paid prior to perf, but then dies
9
Q
Restitution - When No K Involved
A
- quasi-K action
May be available if:
- pl has conferred benefit on def by rendering services or expending properties
- pl conferred the benefit w/ reasonable expectation of being compensated for its value
- def knew or had reason to knew of pl’s expectation AND
- def would be unjustly enriched if they were allowed to retain benefit w/o compensating pl