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Article
Liability for work done where contract is denied: Contractual and restitutionary approaches
Lloyd's Maritime and Commercial Law Quarterly
  • Man YIP, Singapore Management University
  • Yihan GOH, Singapore Management University
Publication Type
Journal Article
Version
publishedVersion
Publication Date
5-2012
Abstract

This paper explores the divide between the law of contract and the law of restitution in dealing with the different situations that arise from one party commencing work prior to the conclusion of a formal contract. It argues that contract and unjust enrichment each have a proper role to play in dealing with such cases. First, it argues against a purely contractarian view that such cases should be exclusively resolved by the law of contract, through an implied collateral contract. Such a technique, applied vigorously, would result in nullifying the concept of “essential terms” and an artificial construction of parties intentions. Second, it dispels the myths that the law of unjust enrichment is inadequate to deal with the problem, by clarifying the enrichment test and the unjust factor to be applied in such cases. It will be shown that the defendant s assumption of the risk of financial responsibility for the benefit is key to establishing these two elements of the claim.

Keywords
  • contract,
  • restitution,
  • unjust enrichment,
  • pre-contractual liability
Discipline
Publisher
Informa
Copyright Owner and License
Publisher
Creative Commons License
Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International
Additional URL
https://www.i-law.com/ilaw/doc/view.htm?id=284273
Citation Information
Man YIP and Yihan GOH. "Liability for work done where contract is denied: Contractual and restitutionary approaches" Lloyd's Maritime and Commercial Law Quarterly Vol. [2012] Iss. 2 (2012) p. 289 - 316 ISSN: 0306-2945
Available at: http://works.bepress.com/manyip/9/