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31. Which of these amounts claimed by the buyer, if any, could best be described as restitution?
A seller entered into an agreement to sell a machine to a buyer for $5,000. At the time of the order, the buyer gave the seller a down payment of $1,000. The buyer then built a foundation for the machine at a cost of $250. The seller failed to deliver the machine. The buyer made reasonable efforts to find a similar machine and bought one for $5,500 that did not fit on the foundation. The buyer sued the seller for breach of contract.
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C is correct. It is the only answer that describes restitution as a remedy, so it is the correct answer. The only benefit seller received was the $1,000, and restitution is calculated by what the breaching party gained, rather than what the non-breaching party might have lost to prevent unjust enrichment. Always look to the call of the question. The trick to this question is to realize that it is simply asking for the best definition of restitution, given the facts and answers. This question is specifically about restitution damages, so the answer choice that is best is C.
A and B are incorrect. Restitution damages only consider what parties have gained. Both A and B describe damages that the buyer suffered as a loss, rather than a benefit that the seller gained.
D is incorrect. The $1,000 deposit paid by the buyer to the seller conferred a benefit and is recoverable in an action for restitution.