LawMeaning

Restitution Damages

In one sentence

Compensation that returns to you the value of a benefit the other party received from you.

Plain English

Restitution damages aim to restore you to where you started by making the other party give back or pay for the benefit they received from you. Unlike expectation damages (which pay for lost profits), restitution focuses on preventing unjust enrichment—making sure the other side doesn't keep something valuable they got from you. If a contractor walks off a half-finished job after you've paid them $50,000, restitution damages would recover that $50,000 (or the value of work completed). This remedy is available even when no contract exists, as long as one party benefited at the other's expense.

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Example

You pay a painter $10,000 upfront to paint your house. He completes only 30% of the work and disappears. You can recover restitution damages for the $10,000 benefit he received, since he unjustly enriched himself with your money.

Used in a sentence

“The court awarded restitution damages to return the plaintiff the full value of the services she had provided.”

Related terms

Unjust Enrichment
A legal claim when someone gains money or benefit unfairly at another's expense.
Expectation Damages
Money awarded to put a party in the position they would have been in if the contract had been fully performed.
Damages Calculation
The process of determining how much money a harmed party should receive for a breach.
Voidable Contract
A contract that one party can cancel or reject, but is otherwise valid.
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.
Offeror
The person who makes an offer to enter into a contract.

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.