Courts may refuse to assist 'guilty' parties in enforcing illegal contracts or to help parties recover money or property transferred under an illegal contract where public policy requires this. The law of unjust enrichment governs the circumstances when a party can recover benefits conferred pursuant to a contract. In which of the following circumstances will restitution not be available to a party to the illegal contract?
Correct

Question

Quizplus · Accepted Answer

This is because the law generally does not permit a party to profit from their own wrongdoing. If a claimant must rely on evidence of their own illegal actions to establish their claim for restitution, courts will typically refuse to assist them. This is a principle rooted in public policy, which aims to discourage illegal activity by denying judicial support for enforcing rights arising from such activities.
Options A and C describe situations where restitution may still be available:
A) Where the defendant is unaware of the facts giving rise to the illegality: If the defendant is innocent of the illegality, the courts may allow the claimant to recover on the grounds of unjust enrichment, as the defendant would otherwise be unjustly enriched at the claimant's expense.
C) Where the claimant cannot establish a legal or equitable proprietary right to the property independent of the illegal contract: Even if the claimant cannot establish a legal or equitable right to the property, they may still be able to recover if they can show that the defendant would be unjustly enriched without restitution.
Therefore, the correct answer is B) Where the claimant has to rely on her own illegal act to prove her case, as this is the circumstance where restitution will not be available.

Courts May Refuse to Assist 'Guilty' Parties in Enforcing Illegal