Restitution

In one sentence

Returning money or property to restore someone to their original financial position.

Plain English

Restitution is about giving back what was wrongfully taken or unjustly enriched. If someone breaches a contract and you've already paid them, restitution means they return your money. It's not about compensating you for lost profits or future earnings—it's simply restoring what you actually gave them. Restitution can apply in contract cases, but it's also used in criminal law and tort cases.

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Example

You pay a contractor $10,000 upfront to renovate your kitchen, but he abandons the job halfway through. You can seek restitution to get your $10,000 back, plus damages for the incomplete work.

Used in a sentence

“The court ordered restitution of the advance payment because the service provider never performed any of the promised work.”

Related terms

Rescission

Unwinding a contract entirely, returning both parties to their positions before the deal.

Breach

A failure to do what a contract requires, such as not paying or not delivering.

Remedy

A legal action or payment a court awards to fix a harm or enforce a right after a breach.

Unjust Enrichment

A legal claim when someone gains money or benefit unfairly at another's expense.

Compensatory Damages

Money paid to reimburse a party for actual losses directly caused by a breach or wrongdoing.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

Consideration

Something of value exchanged by each party to make a contract binding.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.