A party to a contract that is unenforceable because of the statute of frauds may be able to recover in restitution the benefits conferred on the other party in reliance on the unenforceable contract.

Question

Quizplus · Accepted Answer

This is a correct statement of the law of restitution in regard to unenforceable contracts under the statute of frauds. Even if the contract is not enforceable due to lack of written evidence, a party who has provided a benefit to the other party in reliance on the contract may be entitled to recover the value of that benefit under the legal remedy of restitution.

A Party to a Contract That Is Unenforceable Because of the Statute