Final answer:
The courts may require a party unjustly enriched after executing an illegal contract to pay damages to the other party. This falls under restitution to prevent undue benefit at another's expense. Restitution is aligned with the legal enforcement of contractual and property rights essential for economic transactions.
Step-by-step explanation:
After an illegal contract is executed and one party is unjustly enriched at the expense of another, the courts may require the enriched party to pay damages to the other party. This legal remedy falls under the concept of restitution, where the goal is to prevent undue benefit or enrichment at the expense of another individual, particularly in situations where the contract is void and unenforceable due to its illegal nature. The court’s intervention in such circumstances is often necessary to provide a degree of justice and financial correction, ensuring that the aggrieved party receives compensation proportional to the benefit unjustly received by the other party.
This concept is part of the broader legal system that enforces contractual rights, which in turn are based on property rights. In society, these rights are critical for economic growth and the ability to transact business confidently. The legal system offers recourse in the event of noncompliance, as highlighted by the example of a surgeon who expects payment after providing services. In the case of illegal contracts, however, the standard enforcement of contracts does not apply, and the party in violation could face the obligation to return or compensate for any unjust benefits they may have received.