Also known as: claims in restitution · claim for restitution · restitutionary claim · restitution claim
Written by attorneys · grounded in primary & secondary sources — see below
A remedy allowing recovery of the reasonable value of benefits conferred under an unenforceable contract to prevent unjust enrichment. The claim arises when one party has rendered services or made improvements in reliance on an agreement later found unenforceable, such as under the Statute of Frauds. Recovery is available unless the statute itself bars it or its purpose would be frustrated.
Clifford Cox orally agreed to produce investigative reports for Continental Bank over eighteen months. Cox spent four months traveling and preparing drafts before the bank refused to pay or publish. Cox sues seeking the reasonable value of his services. The claim in restitution succeeds because the oral agreement is unenforceable under the Statute of Frauds yet the bank received the benefit of the work performed.
Cameron Cruz contracted to buy property from Orchard Hills but defaulted after paying a substantial deposit and making improvements. The seller retained the property and refused to return the deposit. Cruz asserts a claim in restitution for the value conferred. The claim proceeds because partial performance in good faith supports recovery of benefits retained even though the buyer breached.
Select any source to read its text and confirm it supports the definition.
No. A party retains a claim in restitution for benefits conferred even though the contract is unenforceable under the Statute of Frauds unless the statute itself provides otherwise or its purpose would be frustrated by allowing recovery.
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Recovery is measured by the reasonable value of the services rendered or improvements made. The unenforceable agreement may serve as evidence of that value but does not control the amount awarded.
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Restitution is denied if the statute expressly precludes it or if allowing recovery would frustrate the statute's purpose, such as when a real estate broker seeks the exact commission barred by a writing requirement.
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Yes. Partial performance in reliance on an unenforceable contract supports restitution to prevent unjust enrichment, provided the performing party would have a right to recovery if the contract were enforceable.
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