LAW 505-002 – Contracts I

Restatement Second of Contracts § 199


Restitution Where Party Withdraws or Situation Is Contrary to Public Interest

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A party has a claim in restitution for performance that he has rendered under or in return for a promise that is unenforceable on grounds of public policy if he did not engage in serious misconduct and

  1. he withdraws from the transaction before the improper purpose has been achieved, or
  2. allowance of the claim would put an end to a continuing situation that is contrary to the public interest.