What is the concept of restitution in contract law?

Restitution in contract law is the concept of providing a person with compensation when they have suffered a loss as a result of a breach of contract. This type of remedy is designed to return the person suffering the loss to the same financial position that person would have been in the absence of the breach. When restitution is awarded, the court may order the defendant, or the person who breached the contract, to pay money to the claimant, or the person who suffered the loss. In Massachusetts contract law, there are two types of restitution that can be prescribed. The first is a quantum meruit remedy, which occurs when one party has provided services or goods to the other and is entitled to receive payment. This restitution award would be equal to the reasonable value of the services or goods provided. The other type of restitution that could be prescribed is known as a restitutionary award. This happens when money has been paid by one party to the other, and, due to the breach of contract, the receiving party has not fulfilled the contract and is unable to repay the money. The restitutionary award would be equal to the amount of the money that had been paid. In either case, the intent of restitution is to make the non-breaching party whole. The monetary award will cover any losses suffered as the result of the breach, including any net profits that would have been earned had the contract been followed. Thus, restitution in contract law seeks to restore the injured party, as much as possible, to the financial state they should have been in absent any breach.

Related FAQs

What is the Uniform Computer Information Transactions Act (UCITA)?
What are some important considerations for drafting a business contract?
What is an S Corporation and what are its tax advantages?
What are the rules governing the sale of securities in the United States?
What are the implications of e-commerce for businesses?
What are the advantages and disadvantages of partnerships?
What are the principles of contract interpretation?
What are the limitations on the transfer of personal information in contract law?
What is the concept of consideration in contract law?
What are the legal implications of negotiation in a business transaction?

What is the concept of restitution in contract law?

Related FAQs

Related Blog Posts