The law of
restitution is the law of gains-based recovery. It is to be contrasted with the
law of compensation, which is the law of loss-based recovery. Obligations to make restitution and obligations to pay compensation are each a type of
legal response to events in the real world. When a
court orders restitution it orders the defendant to give up his/her gains to the claimant. When a court orders compensation it orders the defendant to pay the claimant for his or her loss.