Also known as: restitutionary interest · restitution interest
Written by attorneys · grounded in primary & secondary sources — see below
An interest protected by contract remedies under which a party seeks restoration of any benefit conferred on the other party. The interest focuses on preventing unjust enrichment by returning the value of performance or materials supplied even when no enforceable contract exists or after cancellation.
GreenEarth Consulting LLC prepared a full wetlands restoration plan and began on-site work for Harborview Development Corp. Harborview canceled without cause but used the plan to obtain permits and market the project. GreenEarth sues in quasi-contract. The court awards the reasonable value of the plan and partial work that Harborview retained and exploited.
Lopez performed six months of contract review and negotiation work for NovaTech. NovaTech used the drafts and advice to avoid unfavorable terms but refused payment after claiming no enforceable fee agreement. Lopez sues in quantum meruit. The court measures recovery by the reasonable value of the services NovaTech actually received and used.
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The restitution interest restores the value of any benefit a party conferred on the other, while expectation protects the benefit of the bargain and reliance reimburses out-of-pocket losses from reliance on the contract. Courts select the appropriate interest based on the facts, such as when no contract formed or when unjust enrichment must be prevented.
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Restitution is the best measure when one party conferred a benefit that the other retained and used, such as delivering inventory or performing services that the recipient exploited. It prevents unjust enrichment even if no contract was formed or the agreement is unenforceable.
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Yes. Restitution measures the reasonable value of the benefit to the recipient or the increase in the recipient's property value, which may exceed the conferring party's actual expenditures.
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No. Recovery turns on the value of the benefit conferred and retained, not on whether the recipient realized a net profit from it.
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…it honestly. Id ; Restatement (Second) of Contracts § 376 comment a. The issue we must now address is the proper measure of the restitutionary interest. The first step determining the proper measure of restitution requires that the rescinding party return or offer to return, conditional on restitution, any interest in property that he has…