Quantum of restitution (Michael Harakis, 9 Dec 2003)

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Sender:	Michael Harakis
Date:	Tue, 9 Dec 2003 15:15:49
Re:	Quantum of restitution

Measure of restitution. I would be grateful for any thoughts people may have as to the proper measure of restitution that should be claimed in the following factual scenario:

A Ltd has a contract with B Ltd, where A Ltd is to supply B Ltd with certain services. In fact B Ltd does not exist, but would have been a subsidiary to C Ltd and C Ltd is the person for whose benefit B Ltd would have contracted.

Without knowing that B Ltd did not exist, A Ltd supplied the services under the contract. C Ltd received the services and indeed profits from them by being able to discharge its obligations to D Ltd.

Presuming that A has a right against C for the benefit rendered to it, what is the extent of the benefit recoverable?

Is it the contract price for which the services would have been rendered to B?
Is it the market value of the services?
Is it the profit derived by C from its contract with D?

I would be pleased to hear from people with their thoughts.

Kind regards,
Michael Harakis

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