§370. REQUIREMENT THAT BENEFIT BE CONFERRED
A party is entitled to restitution under the rules stated in
this Restatement only to the extent that he has conferred a benefit on the other party by way of
part performance or reliance.
a. Meaning of
requirement. A party's restitution interest is his interest in having
restored to him any benefit that he has conferred on the other party....
However, a party's expenditures in preparation for performance that do not confer a benefit on the
other party do not give rise to a restitution interest....If, for example, the performance
consists of the manufacture and delivery of goods and the buyer wrongfully prevents its completion, the
seller is not entitled to restitution because no benefit has been conferred on the buyer. See
2. A contracts to sell B a machine for $100,000. After A has
spent $40,000 on the manufacture of the machine but before its completion, B
repudiates the contract. A cannot get restitution of the $40,000 because no benefit was conferred on
5. A, a social worker, promises B to render personal services to
C in return for B's promise to educate A's children. B repudiates the contract after A has
rendered part of the services. A can get restitution from B for the services, even though they were not
rendered to B, because they conferred a benefit on B.
§371. MEASURE OF RESTITUTION INTEREST
If a sum of money is awarded to protect a party's restitution
interest, it may as justice requires be measured by either
(a) the reasonable value to the other party of what he received
in terms of what it would have cost him to obtain it from a person in the claimant's position,
(b) the extent to which the other party's property has been
increased in value or his other interests advanced.
a. Measure of benefit....An
especially important choice is that between the reasonable value to a party of what he received in terms of what it would have
cost him to obtain it from a person in the claimant's position and the addition to the wealth of that
party as measured by the extent to which his property has been increased in value or his other interests
advanced. In practice, the first measure is usually based on the market price of such a substitute. Under
the rule stated in this Section, the court has considerable discretion in making the choice between
these two measures of benefit....
b. Choice of measure....The reasonable value to the party from
whom restitution is sought (Paragraph (a)), is, however, usually greater than the addition
to his wealth (Paragraph (b)). If this is so, a party seeking restitution for part performance is
commonly allowed the more generous measure of reasonable value, unless that measure is unduly
difficult to apply, except when he is in breach (§374)....