LAW 505-002 – Contracts I

Restatement Third of Restitution § 33


Incapacity of Recipient

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  1. A person who renders performance under an agreement that is unenforceable by reason of the other party's legal incapacity has a claim in restitution against the recipient as necessary to prevent unjust enrichment. There is no unjust enrichment if the claimant receives the counterperformance specified by the parties' unenforceable agreement.
  2. Restitution under this section is available only to a person who has dealt with the recipient in good faith on reasonable terms.
  3. Notwithstanding the unjust enrichment of the recipient, restitution may be limited or denied if it would be inconsistent with the protection that the doctrine of incapacity is intended to afford in the circumstances of the case.