Question

Excavate n’ Fill, Inc., enters into a contract with Fred to fill and landscape an abandoned quarry on Fred’s land. Fred advances Excavate n’ Fill10 percent of its cost. The parties rescind the contract. Excavate n’ Fill’s refund of the payment is

Answer 1

Answer:

restitution.

Explanation:

In contract law, restitution refers to a party forfeiting monetary gains that they obtained illegally from the other party involved in the contract. Restitution is very commonly used in contract law since it is meant to restore an injured party due to damages suffered from another parties unlawful performance. Ideally, when restitution is applied, the injured party should return to their original position.

In this case, Excavate n' Fill must return the $10,000 that Fred gave them as advanced payment. The restitution of the $10,000 should restore Fred's original position.