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Restitution needs a test case

By: Language: English Series: Construction News ; (7010) 22 March 2007, 32(1)Publication details: 2007Subject(s): Summary: Examines the law of restitution. Discusses a situation that arose between a contractor carrying out refurbishment work on a pub, the brewery and the licensees. The licensees were contracted to pay the contractor, but went bankrupt, and the brewery argued it had no responsibility to pay the contractors. The brewery substantially gained at the contractor?s expense as the contractor did not have the funds to challenge this through the courts. Notes that a quantum meruit claim where a contract has not been concluded is regarded as a claim in restitution. Also points out that for a restitutionary claim to succeed, it must be clear that the client has benefited from the work carried out by the subcontract and that it was unjust for the client to retain the benefit of the work. Argues that a test case is required to clarify this grey area of law.
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Journal article London Journal article L137251 (Browse shelf(Opens below)) 1 Available 137251-1001

Examines the law of restitution. Discusses a situation that arose between a contractor carrying out refurbishment work on a pub, the brewery and the licensees. The licensees were contracted to pay the contractor, but went bankrupt, and the brewery argued it had no responsibility to pay the contractors. The brewery substantially gained at the contractor?s expense as the contractor did not have the funds to challenge this through the courts. Notes that a quantum meruit claim where a contract has not been concluded is regarded as a claim in restitution. Also points out that for a restitutionary claim to succeed, it must be clear that the client has benefited from the work carried out by the subcontract and that it was unjust for the client to retain the benefit of the work. Argues that a test case is required to clarify this grey area of law.