What does restoration of benefit imply?

Restoration of benefit implies the return of benefits received under a voidable contract. In the context of contract law, when a contract is declared voidable, one party may choose to rescind or cancel the contract due to certain circumstances, such as misrepresentation, undue influence, or mistakes.

When this happens, the principle of restoration of benefit comes into play, meaning that any benefits or advantages received by one party as a result of the contract must be returned. This ensures that neither party is unfairly enriched at the expense of the other once the contract is annulled. The focus is on equity and fairness, requiring the parties to return to their original positions as closely as possible before the contract was made. Therefore, the correct understanding of restoration of benefit is directly associated with the return of advantages received under a voidable contract.

The other options do not accurately reflect this principle. Compensation for damages incurred relates more to tort law than contract law, partial repayment to a contractor does not capture the essence of restoration in terms of benefits received, and adjustment of contractual terms speaks to negotiation rather than the return of received benefits.