Restitution Interest

Question 1

Restitution damages

Answer 1

Restores the plaintiff whatever benefit was conferred upon the defendant prior to the breach and when it would be unjust for the defendant to retain that benefit.

Question 2

Unjust enrichment

Answer 2

Recovery is measured by the value of the benefits conferred upon the promisor by the promisee.

Question 3

Bailey v. West

Answer 3

Horse purchased at auction and shipped. Turns out to be lame so it gets returned. No one wants the horse. Bailey agrees to care and sends bills for care to defendant and sues for their payments. Judgement for West.

i) Bailey kept the horse for 50 months but got payment (judgment) only for 5 months (the value of the horse). His restitution interest was only for boarding as long as made economic sense. After 5 months, he would have sold the horse for the value of those 5 months of care and he would have been back into the same economic place (zero sum). The court imposes this level of damages.
ii) As soon as he got word that he was not going to get paid (5 months), he simply became a volunteer and wasn’t entitled to anything. Before he became aware, there was a contract implied-in-fact.
iii) Owner of the horse expressly said he wanted nothing to do with it and that he had no obligations—this precludes contracts implied-in-law/fact findings.

Question 4

Implied-In-Fact Contracts

Answer 4

When words express the intent of the parties, the contract is an express contract. When conduct indicates assent or agreement, it is implied-in-fact.

Question 5

Implied-In-Law (Quasi) Contracts

Answer 5

When a person confers a measurable benefit on another, the person has acted with gratuitous intent and allowing the other to keep the benefit without paying is unfair. This theory will allow recovery in such situations. Ex: If you show up to repair A’s house and start to work, accidentally, on B’s house and B sees you doing it and says nothing—implied-in-law contract between you and B and he will be liable for restitution damages.

i) Doctor performing emergency services.
ii) If you realize that a benefit is being given to you, you should ask about it or you will be obliged to pay for it.