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
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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
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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
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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
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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
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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
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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
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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
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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

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