Which term describes an equitable remedy restoring a person to their original position prior to loss or injury?

Restitution is the term that describes an equitable remedy aimed at restoring a person to their original position prior to a loss or injury. This legal principle focuses on the concept of fairness and involves returning a party to their initial state before the unjust action or harm occurred. Unlike other legal remedies, which might only provide financial compensation for damages, restitution seeks to acknowledge and rectify the specific loss, ensuring that the injured party is made whole again, as much as possible.

In this context, restitution is particularly relevant in cases involving unjust enrichment, where one party benefits at the expense of another without a legal basis. The essence of restitution is to prevent the wrongdoer from unfairly profiting from their actions, thereby restoring justice.

The other terms have distinct legal implications. Rescission refers to the cancellation of a contract, returning parties to their positions prior to the agreement rather than directly addressing compensation for losses. Compensation typically refers to monetary payment for damages incurred, without necessarily restoring a specific original state. An injunction, on the other hand, is a court order requiring a party to do or refrain from doing a specific act, and does not involve the restoration of a person to a prior position following a loss.