Contracts and Sales Multistate Bar Practice Exam

What does restitution aim to prevent?

1. Repeated breaches of contract

2. Unjust enrichment of one party at the expense of another

3. Non-performance of contractual duties

4. Improper assignments of contract rights

The correct answer is: Unjust enrichment of one party at the expense of another

Restitution primarily aims to prevent unjust enrichment, which occurs when one party benefits at the expense of another without a legitimate reason. In the context of contracts, when one party fulfills their obligations, they should not be left at a loss while the other party gains an undeserved benefit. Restitution seeks to restore the party who has been wronged to the position they would have been in had the unjust enrichment not occurred. This principle is a foundational aspect of contract law, ensuring fairness and equity between parties involved in a contractual relationship. The other options, while related to contractual issues, do not capture the specific goal of restitution. For instance, preventing repeated breaches of contract pertains more to the enforcement of contract terms rather than restitution's focus on equity. Similarly, while non-performance of contractual duties and improper assignments of contract rights involve significant aspects of contract law, they don't address the purpose of restitution itself, which is directly tied to rectifying situations of unjust enrichment rather than merely enforcing performance or interpreting rights.