Unjust enrichment prevents unfair benefits in contract law when no valid agreement exists. It's a basis for restitution, addressing situations where one party gains an advantage without proper compensation, rooted in the principle that no one should profit unjustly at another's expense.

To establish unjust enrichment, plaintiffs must prove the defendant received a benefit at their expense and that retaining it would be inequitable. Courts consider factors like the parties' relationship, circumstances, and extent of enrichment to determine if compensation is necessary.

Unjust Enrichment in Contract Law

Role of unjust enrichment

• Unjust enrichment prevents one party from unfairly benefiting at the expense of another
• Applies when no valid contract governs the situation
• Serves as a basis for restitution to the unfairly disadvantaged party
• Remedy in contract law when a contract is invalid or unenforceable
• Addresses situations where one party conferred a benefit without receiving proper compensation
• Rooted in the principle that no one should profit or enrich themselves unjustly at another's expense

Elements of unjust enrichment claims

• Enrichment: Defendant received a benefit (money, property, services, or other advantages)
• At the plaintiff's expense: Benefit conferred by the plaintiff directly or indirectly
• Unjust retention: Inequitable for the defendant to retain the benefit without compensating the plaintiff
• Plaintiff must demonstrate they suffered a loss or disadvantage due to the defendant's enrichment
• Court considers case circumstances to determine if unjust for defendant to retain benefit without compensation

Application of unjust enrichment

• Analyze factors to determine if unjust enrichment applies
  • Nature of the relationship between parties
  • Existence of a valid contract or agreement
  • Circumstances under which the benefit was conferred
  • Extent of enrichment and corresponding loss or disadvantage to the plaintiff
• Example: Contractor performs work on homeowner's property without valid contract
  • Homeowner accepts and benefits from work, may be liable for unjust enrichment
  • Contractor must prove work value and unjust for homeowner to retain benefit without payment
• Often brought as an alternative to breach of contract claims when contract validity is questionable

Unjust enrichment vs other remedies

• Distinct legal remedy differing from other contract law remedies
  • Compensatory damages: Compensate plaintiff for losses due to defendant's breach
  • Restitution: Restore plaintiff to pre-contract position
  • Quantum meruit: Recover reasonable value of services rendered, even without valid contract
• Focuses on defendant's gain, while others focus on plaintiff's loss
• Equitable remedy, court has discretion in determining appropriate relief based on case circumstances
• May be sought as an alternative or in addition to other legal remedies depending on case facts and available causes of action