Restitution stops, where repayment begins. ‘Discuss the above statement in the light of decided cases.'

Question: Restitution stops, where repayment begins. ‘Discuss the above statement in the light of decided cases.' [HJS 2001]

Find the answer to the mains question of the Law of Contract only on Legal Bites. [Restitution stops, where repayment begins. ‘Discuss the above statement in the light of decided cases.']

Answer

The Principle of Restitution is an important aspect of contract law, which seeks to restore the parties to their original position before the contract was made. In the context of the above statement, it suggests that the obligation to restore or compensate for any losses suffered by the aggrieved party ends with the restoration of the original position, and the repayment of any outstanding amounts begins thereafter.

Several decided cases in Indian contract law support this principle. For instance, in the case of Rajasthan Ltd v. Sh Pala Ram Gupta, 2000 (57) DRJ 863, the court held that it will never apply the provisions of the doctrine of restitution if the contract or agreement is void or illegal from the start at the time of forming the agreement or contract.

It is worth noting, however, that the principle of restitution may not apply in all cases, particularly where the parties have agreed to a specific mode of performance or compensation. In such cases, the terms of the contract will dictate the extent of the parties' obligations, and restitution may not be the appropriate remedy.

The principle of restitution seeks to restore the parties to their original position before the contract, and once this has been achieved, the obligation to repay any outstanding amounts arises. This principle has been supported by several decided cases in Indian contract law. However, the application of this principle may vary depending on the specific terms of the contract and the circumstances of the case.