Restitution is the remedy of last resort when contract law yields an unfair result. Which statement is true?

• A. False
• B. True
• C. Only in tort cases
• D. Not available for third-party beneficiaries

Answer: (B)

Restitution serves to prevent unjust enrichment by restoring value conferred, and it steps in when enforcing the contract would yield an unfair result or when no adequate damages remedy exists. In contract disputes, damages or specific performance are the primary routes, but restitution functions as a fallback remedy used to undo the enrichment that would otherwise occur if one party keeps benefit without paying for it. This makes it appropriate as a remedy of last resort: it only applies when the usual remedies fail to achieve fairness, such as when the contract is void, rescinded, or otherwise unenforceable, or when the available damages would be inadequate. It’s not limited to tort law, and it can have relevance to third-party beneficiaries in certain circumstances, so those narrower statements aren’t correct.