This section applies where the recipient is required, by section 18(6) or (7), to pay the value of a benefit.

The payment is the value of the benefit as at the time of the performance by the other party.

Where there was an agreed price, the value of the benefit is that proportion of the price which the value of the actual performance bears to the value of the promised performance.

Where there was no agreed price, the value of the benefit is the sum of money which a willing and capable provider and a willing and capable recipient would reasonably be taken to have agreed for the actual performance.

But subsections (2) to (4) are subject to subsection (6).

The recipient’s liability to pay the value of a benefit is reduced to the extent that, as a result of the non-performance of an obligation owed by the other party to the recipient (being an obligation under the contract) the recipient is compelled, without compensation, either to dispose of the benefit or to sustain a disadvantage in order to preserve it.