What is the concept of restitution in contract law?
Restitution in contract law is a remedy for a wrongdoer in North Carolina. When a contract is breached, the injured party may be entitled to restitution as compensation for losses incurred. This type of compensation is distinct from damages awarded to the injured party for breach of contract. Restitution seeks to make the wrongdoer whole, restoring the recipient to the position they were in before the breach. Restitution is a form of equitable relief, meaning the court looks at the injustice of the breach and attempts to restore the parties to their position prior to the breach. A court may order the defendant to pay the plaintiff for expenses that were directly attributable to the breach. Restitution usually applies when the non-breaching party has had to pay for something, such as when a third-party has to be paid to make up for the breached contract. For example, if a contractor was hired to build a house, but instead breached the contract, the customer could sue for restitution if they had to pay another contractor to complete the job. Similarly, if a retail store ordered inventory that was never delivered, the store could sue the supplier for restitution if they had to make other arrangements to secure the inventory. In general, the idea behind restitution is to reverse the unjust enrichment of one party at the expense of another. It holds that a wrongdoer should not benefit from their own wrongdoing, and it ensures that the wrongdoer can only profit if the contract is fulfilled.
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