What is the concept of restitution in contract law?
Restitution in contract law is an idea based on the concept of “unjust enrichment.” Unjust enrichment is when one party to a contract has been enriched at the expense of the other party without the other party receiving the benefit of the bargain that was intended when the contract was made. Under contract law in Louisiana, if one party is found to have been enriched at the other party’s expense, then the enriched party may be required to pay restitution to the other party. Restitution requires the party that has been enriched to pay the other party money, services, or goods in an amount equal to what the other party was deprived of under the original contract. It can also require them to pay the other party for any harm suffered or damages caused by the breach of the contract. Restitution is distinct from a damages award in that it does not require one party to prove that they have suffered a loss due to the other party’s breach. Rather, the court will simply look at the facts of the contract and determine that one party has been enriched at the expense of the other. If so, they may order restitution. The purpose of restitution is to restore the parties to the positions they would have been in had the breached contract been performed.
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