Restitution In Contract Law
What Is Restitution In Contract Law
When you sign a contract with another party but that party does not fulfill their contractual obligations or does something illegal, you can file a suit for restitution damages. The restitution you get is supposed to make you “whole” for a loss or injury that you suffered as a result.
Restitution is also referred to as restitutionary damages. Talk to a Business Dispute Attorney In Houston to get additional information.
Awarding Of Restitution
Restitution vs Reliance
The point of restitution is to get the plaintiff to the same position they were before the other party failed to fulfill their contractual obligations. That is the position they were in before the injury or before the loss. Restitution can also be used to take away any benefits or illegal gains. The amount the plaintiff gets is calculated based on the gains the defendant made illegally.
But you cannot get restitution if the damages you suffered are impossible to calculate accurately. Restitution is an option if the contract is unenforceable or if it can help achieve fairness for the plaintiff in contract terms. It can be used in criminal sentencing to allow the plaintiff to receive financial or timely restitution.
Restitution Damages For Different Types Of Cases
How To Calculate Restitution Damages
The damages you incur must be measurable for you to receive restitution. For a contract case, the damages will be awarded depending on the terms of the contract. In a breach of contract case, the contract may be unenforceable, void, or can be a discharged contract.
For unenforceable terms, you may be compensated based on the benefits you intended to receive and the financial gains of a party. In a personal injury case, the plaintiff may receive restitution for medical bills, pain and suffering, and damage to property.
If your case involves an unenforceable promise, you may receive reliance damages. Reliance damages are meant to restore you to the economic position you had before the promise was made. These damages are appropriate in situations where the amount of damages cannot be calculated.
Requirements For Restitution
Reliance Damages vs Consequential Damages
For restitution to apply, one party must have benefited from the loss of the other party. If the case involves a contract breach, the contract will be canceled and the wronged party can then file a lawsuit for restitution. In criminal cases, the defendant may be required to restitute financial damages and also face punishment for breaking the law.
Restitution Vs Compensation
Restitution Damages Example
Restitution and compensation have some similarities but they are not the same. For restitution, the award is determined based on the benefits the defendant gained from the process. But with compensation, the damages are based on how much the wronged party lost.
The amount you receive in compensation is determined by your legal case and the judge’s ruling. While a judge cannot award both restitution and compensation in a criminal case, the plaintiff can be asked to choose whether they want compensation or restitution.
Restitution Cases
What Are The Types Of Damages In A Contract
Breach of contract is the most common restitution case and usually involves violating the terms of a valid contract. Another type of restitution case is a personal injury case where the plaintiff may receive restitution for medical expenses and pain and suffering. Then there are criminal cases where the plaintiff is awarded restitution instead of the defendant being ordered to pay fines.
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