Also known as:quasi contractual recovery · quasi-contract recovery · quasi-contract · unjust enrichment · quantum meruit · restitution
Written by attorneys · grounded in primary & secondary sources — see below
A restitutionary remedy at law that restores a party to the position occupied before a transaction by requiring payment of the reasonable value of benefits conferred. It prevents unjust enrichment when no enforceable contract exists or when an agreement is avoided.
Sources & Authorities
How it applies
Common Examples
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Broker Negligence and Lost Coverage
Nova Assurance paid premiums to Premier Risk expecting policy renewal. When Premier failed to renew, a power outage caused lost profits with no insurance recovery available. Nova sought payment equal to the value of the protection it had funded through its payments.
Joint Tenancy After Divorce Filing
A spouse executed a will leaving the marital home to a third party while divorce proceedings were pending. The testator died before the tenancy ended. The surviving spouse conferred benefits on the property and sought restitution equal to the value of those benefits from the third party to prevent unjust enrichment.
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Cases
Statutes
Federal Rules
Uniform Acts
Model Codes
Common Law
Restatements
Hornbooks
Both parties to a land contract assumed the parcel included water rights essential to the buyer's plans. After discovering the mistake, the buyer avoided the deal and sought return of the down payment plus the value of improvements made in reliance.
Enforcement of Restrictive Covenant
A homeowner violated a recorded servitude by building outside approved setbacks. Neighbors sued and requested an order requiring removal plus payment reflecting the benefit the homeowner received from the unauthorized construction.
Broken Engagement and Preparations
After a couple ended their engagement, one partner sought reimbursement for wedding deposits and career sacrifices made in anticipation of marriage. The claim rested on expenditures made in reliance rather than on any expected future benefits.
Client Funds and Reporting Duty
A client conferred funds on an attorney under a private restitution agreement after misappropriation by another lawyer. The recipient attorney sought to retain the value of benefits conferred while the client pursued recovery of the reasonable value paid.
Common questions
Frequently Asked
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How does quasi-contractual recovery differ from contract damages?+
Quasi-contractual recovery restores the parties to their pre-transaction positions by awarding the reasonable value of benefits conferred. Contract damages aim to place the aggrieved party in the position performance would have provided.
Supporting sources
When is quasi-contractual recovery available in the absence of an enforceable contract?+
It is available when one party confers a benefit on another under circumstances where retention of the benefit without payment would constitute unjust enrichment.
Supporting sources
Does quasi-contractual recovery permit recovery of lost profits?+
No. The remedy focuses on restoring the status quo ante through restitution of benefits conferred rather than compensating for expected gains.
Supporting sources
557 P.2d 106 (Cal. 1976)Property
…partnership or joint venture, or some other tacit understanding between the parties. The courts may also employ the doctrine of quantum meruit, or equitable remedies such as constructive or resulting trusts, when warranted by the facts of the case. In the instant case plaintiff and defendant lived together for seven years without…