Termination Flashcards
(12 cards)
Which of the following best defines “unjust enrichment” after contract termination?
A. One party retains a benefit at the expense of another without legal basis
B. A party’s legitimate expectation of future performance
C. Compensation for reliance losses
D. A punitive award against the breaching party
A. One party retains a benefit at the expense of another without legal basis.
Explanation: Unjust enrichment arises when a defendant is enriched, the claimant is correspondingly impoverished, and there is no juristic reason for the enrichment
Which is NOT an element required for a restitution claim?
A. Enrichment of the defendant
B. Impoverishment of the claimant
C. Existence of a valid contract only
D. Absence of a legal justification for the enrichment
C. Existence of a valid contract only.
Explanation: Restitution focuses on unjust enrichment, not merely on contract existence—it applies even when a contract fails or is terminated .
What is the primary restitutionary remedy following termination?
A. Expectation damages
B. Specific performance
C. Quantum meruit (value of work done)
D. Punitive damages
C. Quantum meruit (value of work done).
Explanation: Upon termination, a party may recover the reasonable value of benefits conferred under a quasi-contractual claim for restitution
Which defence can bar a restitution claim post-termination?
A. Contributory negligence
B. Change of position by the defendant
C. Frustration of contract
D. Lack of capacity
B. Change of position by the defendant.
Explanation: If the defendant has changed their position in reliance on the enrichment (e.g. spent the money), restitution may be reduced or denied .
A tenant pays a 6-month rent deposit but is evicted for breach halfway through. They seek return of the unused deposit. Which remedy?
A. Specific performance of the lease
B. Liquidated damages
C. Expectation damages
D. Restitution for unjust enrichment
D. Restitution for unjust enrichment.
Explanation: The landlord holds an adjusted benefit (unused deposit) at the tenant’s expense with no contractual basis to retain it post-termination
A builder completes 40% of works before the owner terminates for breach. Builder claims payment for work done. Which principle applies?
A. Damages for breach
B. Quantum meruit restitution
C. Specific performance
D. Frustration relief
B. Quantum meruit restitution.
Explanation: After termination, builder may recover the reasonable value of work done (unjust enrichment remedy) .
Supplier delivers goods under a void contract. Buyer uses half, then terminates. Supplier sues for price. Buyer defends. Best claim for supplier?
A. Penalty enforcement
B. Injunction to prevent use
C. Expectation measure
D. Restitutionary claim for goods received
D. Restitutionary claim for goods received.
Explanation: Where the underlying contract fails, supplier may claim the value of enrichment conferred on buyer
Consultant’s retainer is lawfully terminated. Consultant seeks lost profit on unperformed future services. Which remedy is unavailable?
A. Expectation damages for future profit
B. Restitution for services already rendered
C. Recovery under quantum meruit for past work
D. Account of profits
A. Expectation damages for future profit.
Explanation: Termination discharges future obligations; lost future profits are not recoverable under unjust enrichment or restitution
How does unjust enrichment differ from expectation loss after termination?
A. Unjust enrichment compensates reliance; expectation loss compensates reliance
B. Unjust enrichment restores benefits conferred; expectation loss restores what was promised
C. They are the same remedy under different labels
D. Expectation loss is only in tort
B. Unjust enrichment restores benefits conferred; expectation loss restores what was promised.
Explanation: Restitution focuses on reversing benefits, whereas expectation damages aim to fulfill the promised bargain
Which scenario illustrates the change-of-position defence?
A. Defendant enriched and then purchases assets with the money
B. Defendant refuses to pay restitution
C. Claimant affirms the contract
D. Defendant claims frustration
A. Defendant enriched and then purchases assets with the money.
Explanation: Spending or committing the benefit such that repayment would unfairly harm the defendant invokes change-of-position
After termination, Party A received services but has no contract. A pays for part converted to materials. Which measure applies?
A. Expectation damages
B. Restitutionary value of benefits
C. Specific performance
D. Penalties
B. Restitutionary value of benefits.
Explanation: A non-contractual claim for unjust enrichment recovers the value of benefits conferred
Which is NOT a valid juristic reason to deny restitution post-termination?
A. Change of position
B. Passage of time (long delay)
C. Underlying contract was void for illegality
D. Benefit received under valid subcontract
B. Passage of time (long delay).
Explanation: Delay may bar equitable rescission but does not negate an unjust enrichment claim; only recognized defenses like change of position or illegality do
