Contracts and Sales Multistate Bar Practice Exam

How is restitution calculated when there is minimal benefit to the receiving party?

1. Based on the market value of the good received

2. By the detriment suffered by the plaintiff

3. According to the terms of the original contract

4. By the amount the receiving party has paid

The correct answer is: By the detriment suffered by the plaintiff

Restitution is a legal remedy designed to prevent unjust enrichment by allowing the injured party to recover the value of benefits conferred on the non-breaching party. When there is minimal benefit to the receiving party, calculating restitution by the detriment suffered by the plaintiff is appropriate. This method focuses on the loss or detriment experienced by the party seeking restitution rather than the value of any minor benefit received by the other party. In situations where the benefit conferred is limited, assessing the detriment can provide a clearer picture of what the party has lost, ensuring that restitution is fair and equitable. This approach acknowledges that a recipient's minimal benefit does not warrant a substantial reimbursement or recovery that might otherwise be calculated based on market values or contract terms. The court's aim is to restore the balance and compensate the injured party effectively based on their actual losses rather than the perceived gain of the other party.