LAW 505-002 – Contracts I

Restatement Third of Restitution § 34


Mistake or Supervening Change of Circumstances

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  1. A person who renders performance under a contract that is subject to avoidance by reason of mistake or supervening change of circumstances has a claim in restitution to recover the performance or its value, as necessary to prevent unjust enrichment. If the case is one in which the requirements of § 54 can be met, the remedy of rescission and restitution permits the reversal of the transaction without the need to demonstrate unjust enrichment.
  2. For purposes of subsection (1):
    1. the value of a nonreturnable contractual performance is measured by reference to the recipient's contractual expectations; and
    2. the recipient's liability in restitution may be reduced to allow for loss incurred in reliance on the contract.