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High Quality Content by WIKIPEDIA articles! 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 gains to the claimant. When a court orders compensation it orders the defendant to compensate the claimant for his loss. For instance, Joseph Charles breaks into a jewelry store and steals $5000 worth of jewelry. In the process, he does $1000 worth of damage to the store's back door and the showcases he broke. Later, Joseph Charles is arrested. If Joseph Charles is forced to pay restitution, he must pay back his gains, $5000. If he is forced to pay compensation, he must pay $6000, which is the store's total losses.