Introduction to Unjustified Enrichment

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Questions and Answers

What concept refers to a person being unjustly enriched at another's expense without legal justification?

  • Negotiorum Gestio
  • Unjust Enrichment (correct)
  • Implied Contract
  • Restitution

Which of the following is NOT one of the three remedies associated with unjust enrichment?

  • Recompense
  • Repetition
  • Compensation (correct)
  • Restitution

In the context of negotiorum gestio, what is a requirement for the gestor's actions?

  • The gestor must prioritize their own expenses.
  • The gestor must act without the knowledge of the other person. (correct)
  • The gestor must be aware of the other person's situation.
  • The gestor must have explicit permission from the other person.

According to case law, what is the primary aim of the remedies like repetition and restitution?

<p>To restore the status quo ante. (D)</p> Signup and view all the answers

Who first considered the concept of negotiorum gestio?

<p>Roman jurists (A)</p> Signup and view all the answers

What is one of the essential conditions for a claim of unjustified enrichment to be valid?

<p>The enrichment must be without cause. (D)</p> Signup and view all the answers

Which of the following terms relates specifically to the repayment of a sum that is not due?

<p>condictio indebiti (C)</p> Signup and view all the answers

What scenario is NOT a valid example of unjustified enrichment?

<p>Payment made under a court order. (B)</p> Signup and view all the answers

In the context of unjustified enrichment, what does an increase in assets generally indicate?

<p>Improper gain at another's cost. (B)</p> Signup and view all the answers

What is the legal term for a claim related to something given for an unlawful cause?

<p>condictio ob turpem vel iniustam causam (D)</p> Signup and view all the answers

What type of claim does 'condictio sine causa' represent?

<p>Claim for things given without a legal basis. (A)</p> Signup and view all the answers

In the case of Cantiere San Rocco SA v Clyde Shipbuilding & Engineering Co Ltd, what event prompted the need for a repayment claim?

<p>A war broke out. (D)</p> Signup and view all the answers

What does 'negotorium gestio' mean in relation to unjustified enrichment?

<p>Acting on behalf of another without a contract. (D)</p> Signup and view all the answers

Flashcards

Unjustified Enrichment

A legal principle where a person benefits unfairly at another's expense, and the law may reverse that enrichment.

Negotorium Gestio

A legal concept related to managing someone else's affairs without formal authority.

Condictio Indebiti

A legal claim for repayment of money paid when not owed.

Enrichment

An increase in assets or decrease in liabilities.

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At Another's Expense

Loss of assets or increase in liabilities to another party.

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Unjustified Grounds

No legal basis for the enrichment, not arising from contract, legacy, or court order.

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Quasi-Contract

A legal obligation imposed even though there's no formal agreement.

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Condictio Sine Causa

A legal action based on something being received with no valid legal reason.

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What are the 'Three R's'?

The 'Three R's' are the types of remedies available in unjustified enrichment cases: Repetition, Restitution, and Recompense. They all focus on reversing the unjust enrichment.

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Repetition

A remedy in unjustified enrichment where the court orders the return of money that was wrongly received.

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Restitution

A remedy in unjustified enrichment where the court orders the return of property that was wrongfully acquired.

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Recompense

A remedy in unjustified enrichment where the court orders payment for unjustified expenditure or use of property.

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Gestor

In 'Negotiorum Gestio', this is the person who intervenes in another's affairs without authorization. They manage the affairs of another person.

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Study Notes

Introduction to Unjustified Enrichment and Negotiorum Gestio

  • The focus is on when the law allows reversing enrichment of one person at another's expense without cause.
  • This is an introduction to the topics.

Unjustified Enrichment

  • A concept originating with Roman jurists.
  • Considered under Quasi-Contract.
  • Ulpian's Edict, book 26 outlines a case where someone mistakenly pays what is not due and can recover it through the condictio indebiti (D.12.6.1.1).
  • This involves a mistaken payment.

Some Further Terms

  • Condictio indebiti: Claim for repayment of an undue sum.
  • Condictio causa data causa non secuta: Claim for something given for a failed cause.
  • Condictio ob turpem vel iniustam causam: Claim for something given for a corrupt or unlawful cause.
  • Condictio sine causa: Claim for things given without legal basis—a 'sweep-up' claim.

Meaning of Enrichment

  • An increase in assets or decrease in liabilities.
  • Receiving a service or having work done.
  • Use of another's assets.

At Another's Expense

  • Decrease in assets or increase in liabilities.
  • Rendering a service or doing work.
  • Use by another person of one's assets.

Enrichment must be Unjustified

  • Unsupported by legal grounds, such as:
    • A legacy
    • Arising under contract
    • A court order

Case Example 1

  • Cantiere San Rocco SA v Clyde Shipbuilding & Engineering Co Ltd (1923 SC (HL) 10).
  • Contract for supply of marine engines.
  • First installment paid.
  • War breaks out.
  • How do the sellers get their money back?

Case Example 2

  • Morgan Guaranty Trust Co of New York v Lothian Regional Council (1995 SC 151).
  • Complex financial arrangement.
  • Contract turned out to be void.
  • Could the bank get their money back?
  • Was the Roman Law position clear?

Case Example 3

  • Shilliday v Smith (1998 SC 725).
  • A couple living together, engaged, then separated.
  • The pursuer paid for work on the defender's property.
  • A person is unjustly enriched at another's expense when they benefit from another's actions without legal justification to keep the benefit.

Remedies

  • Repetition: Return of money.
  • Restitution: Return of property.
  • Recompense: Repayment for unjustified expenditure or use.

Case Example 4

  • Dollar Land (Cumbernauld) Ltd v CIN Properties Ltd (1998 SC (HL)).
  • Repetition, restitution, and recompense all aim towards the same end.
  • They describe the remedy a court can provide to address the enrichment.

Negotiorum Gestio

  • Another concept by Roman jurists.
  • A person (gestor) intervenes without authorization in another's affairs (contrast with agency).
  • Requirements include:
    • The other person must be absent, unaware, or incapable.
    • The gestor acted for the other's benefit but expects reimbursement for expenses.
    • The intervention was useful.

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Related Documents

PLS I - Week 7 Introduction to Unjustified Enrichment and Negotorium Gestio (2024) PDF
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