What is the concept of restitution in contract law?

Restitution in contract law is a concept that compensates a person or entity who has been wrongfully deprived of money or property. This concept is based on the idea of making someone “whole again” by putting them back in the same financial position they were prior to the contract breach. In California, restitution is relevant in cases of breach of contract, where the breaching party has caused a financial loss. The court can order the breaching party to pay restitution to the non-breaching party. The goal of restitution is to prevent unjust enrichment of the breaching party at the expense of the non-breaching party. For example, if a person signs a contract to have their house painted, and the painter does some of the work but fails to finish the job, the court may order the painter to pay restitution to the homeowner for the amount it would cost to hire another painter to finish the job. This is an example of restitution in action. In California, the courts attempt to use restitution whenever possible, as it is the most effective method of compensating an aggrieved party for the loss suffered due to a breach of contract.

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