Certified Professional Contract Manager (CPCM) Practice Exam 2025 - Free CPCM Practice Questions and Study Guide

Restitution is designed to restore the aggrieved party to the position they were in before the contract was formed. This type of damage focuses on preventing unjust enrichment and ensures that any benefits conferred to the other party as a result of the contract are returned. The goal of restitution is to rectify situations where one party has gained at the expense of another without providing appropriate compensation.

In contrast, consequential damages relate to losses that occur as a secondary result of a breach, over and above the direct losses from non-performance. Reliance damages are aimed at reimbursing a party for expenses incurred in reliance on the contract, rather than restoring them to their pre-contract position. Punitive damages, on the other hand, are intended to punish the wrongdoing party rather than to restore the aggrieved party's original position. Thus, while there are various types of damages, restitution specifically addresses the need to revert to the state prior to contract formation.