Shared Flashcard Set


Contracts II
Restitution, Equ. Remedies, Parol

Additional Law Flashcards




Rest 370
Requirement That Benefit Be Conferred
A party is entitled to restitution under the rules stated in this Restatement only to the extent that he has conferred a benefit on the other party by way of part performance or reliance.
Rest 371
Measure of Restitution Interest
If a sum of money is awarded to protect a party’s restitution interest, it may as justice requires be measured by either
(a) the reasonable value to the other party of what he received in terms of what it would have cost him to obtain it from a person in the claimant’s position [market value], or
(b) The extent to which the other party’s property has been increased in value or his other interests advance.
Restitution for Breach of Contract
a. In every materially breached contract, P has option to sue on the contract or treat contract as rescinded and sue for restitution.
b. 3 requirements:
i. There must be a material breach.
ii. Must have begun performance.
iii. If P has fully performed they cannot sue for restitution, then they can only receive the KP.
c. Majority Rule: P should be awarded the reasonable value of his work, despite KP
d. Minority/Doolittle/Anderson’s Fav Rule: Restitution damages cannot exceed your lost expectation damages because you can’t be put in a better position than you would be had the contract been performed
e. Texas Rule: QM for Breach of Contract is an Equitable remedy that cannot be used for damages unless money damages are inadequate according to the court’s discretion
Restitution for Implied-In-Fact Contract
i. No express contract, but a contract arises out of conduct (Ex. Dry Cleaners suing you for their services); Must show intent of the parties
1. Ex. You watch someone build a fence and know that he intends to be paid. He could recover the reasonable value of his services.
ii. Can recover reasonable value of services rendered
Restitution for Implied-In-Law Contract
i. No contract is formed, but D has been enriched by P
1. Ex. You watch someone build a fence and don’t know that he intends to be paid. He might be able to recover damages for unjust enrichment.
2. Used often in failed contract cases, where a contract has been proved to be unenforceable but one party has already performed.
ii. Can recover for unjust enrichment of D
iii. Not technically quantum merits but the courts still call it that
iv. In determining whether P is entitled to recover Quantum Meruit, Courts look to the facts of the case to see if the D was unjustly enriched.
1. Two elements:
a. Was D enriched by P?
b. Was enrichment unjust?
i. No Unjust if a gift or officious meddler (imposing the benefit on P)
ii. Value of Benefit received by D (not necessarily the value of services rendered)
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