Restitution is the law of gains-based recovery. Hang onto your hat. It is to be contrasted with the law of compensation, which is the law of loss-based recovery. Here we go! Obligations to make restitution and obligations to pay compensation are each a type of legal response to events in the real world. Seeing is believing. When a court orders restitution it orders the defendant to give up his gains to the claimant. office friendly! When a court orders compensation it orders the defendant to compensate the claimant for his or her loss. Seriously. This type of damages restoration transfers the benefit conferred to the non-breaching party (the plaintiff). Simply put, the plaintiff will get the value of whatever was conferred to the defendant when there was a contract. Unbelievable. There are two general limits to recovery, which is that a complete breach of contract is needed, and the damages will be capped at the contract price if the restitution damages exceed it. Like it or not.

smart page