Also known as: restitutionary claims · restitution claim · claim in restitution
Written by attorneys · grounded in primary & secondary sources — see below
A claim to recover the reasonable value of a benefit conferred on another party to prevent unjust enrichment. The claim remains available even when an underlying contract is unenforceable under the Statute of Frauds unless the statute itself bars recovery or its purpose would be frustrated.
Rosalind Reed orally agreed to provide two years of consulting services to Riverstone Manufacturing. After four months of work Reed received no payment and the company terminated discussions. Reed sues to recover the reasonable value of services rendered. The court permits the claim because restitution prevents unjust enrichment even though the oral contract falls within the Statute of Frauds.
Renee Rogers paid fifty thousand dollars to Redline Automotive toward purchase of a warehouse under an oral agreement. Rogers took possession and made improvements before the seller refused to convey. Rogers sues for restitution of the payment plus improvement value. The court allows recovery because the seller would otherwise retain an unjust enrichment from the buyer's nonwillful breach.
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No. A party may recover the reasonable value of services performed even though the contract is unenforceable under the Statute of Frauds. Recovery is permitted unless the statute expressly bars restitution or its purpose would be frustrated by allowing it.
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The plaintiff must show that the defendant received and retained a measurable benefit from the plaintiff's performance or reliance. Recovery is limited to the reasonable value of that benefit and does not enforce the underlying contract.
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Yes, provided the breach is not willful. A purchaser whose breach is nonwillful may recover payments that unjustly enrich the seller, measured by the benefit retained after accounting for any use value received.
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