Unjustified Enrichment Flashcards
(15 cards)
UE
Legal grounds for enrichment could include…
3
- contract,
- gift or donation,
- inheritance under a will.
UE
Condictio indebiti
Definition, test
= Payments that were undue/made in error.
Morgan v Lothian Council
TEST -
1. deliberate enrichment by transfer,
2. purpose of payment must have been to fulfil legal duty,
3. purpose of payment has failed as benefit was undue,
4. payment must have been due to an misunderstanding by the transferror.
UE
Condictio causa data causa non secuta
Definition, test
= Payments made for a future purpose that failed to materialise.
TEST -
1. deliberate enrichment by trasnfer,
2. establish the reason was either a future purpose outside of contract, or wihtin contract which was frustrated.
3. show that future purpose failed to materialise.
Future purpose must be known and accepted as basis by both parties.
UE
Condictio causa data causa non secuta - advances?
Watson v Shankland
Advances are recoverable when the basis of the payment fails to happen.
UE
Condictio ob turpem vel inuistam causam
Definition, tests
= When contracting parties have made part-performance of an illegal contract.
TEST -
1. deliberate enrichment arising under an illegal contract,
2. was there turpitude?
- if YES in conduct of pursuer of both, defence of in pari delicto is triggered and there is no recovery - Barr v Crawford
- if NO, then recovery is permitted - Cuthbertson v Lowes
Where there is turpitude, the position of the possessor is stronger.
UE
Condictio sine causa
Definition
= Covers cases which do not fit under any of the other headings.
Specific application is unclear because it has not yet been applied.
UE
CCDCNS - Shilliday v Smith
Woman paid for remedial work on a house she intended to move into after getting married.
- they split after 2 years.
- she was entitled to her money back.
UE
COTVIC - Cuthbertson v Lowes 1870
Sell of two potato fields, but the unit of measurement was not allowed so contract was deemed illegal after part had been paid.
UE
COTVIC - Barr v Crawford 1983
Made an agreement to allow someone to bribe the local authorities - when the fraudsters were arrested Mrs Barr requested her money back - could not recover as there was turpitude in the bribe so in pari delicto.
UE
Unauthorised improvement of another’s property
TEST -
1. Enrichment caused by improvement of another’s property.
2. Possession of the property was in good faith
- e.g. cannot break in and do it.
3. Error took place when the improver believed they were the owner of the property.
Newton v Newton 1965
Error is a subjective test, based on the belief of the possessor alone.
UE
Payment of another’s debt
Must show that there was a successful discharge of this debit before the person can be seen as being enriched.
- this is if the creditor accepts the payment as having discharged the debt obligation.
UE
Interference
TEST -
1. must have a use of property rights,
2. without the authority of the owner,
3. must be a benefit measured by “just and reasonable consideration” for the value had there been a fair deal/bargain.
UE
INTERFERENCE - Earl of Fife v Wilson
- Property was being used for shooting but the lease was challenged successfully, the person using it for shooting continued to do so for a while after this challenge, therefore taking a benefit from the property without paying for it.
UE
UE - Defences
“change in position” - person with enrichment may have done something with it that makes it difficult/unfair to give it back.
TEST - Credit Lyonnais v Stevenson
1. must have reasonable grounds to believe benefit was yours.
2. must have acted in reliance with that reasonable belief, causal link to change of position.
3. altered position means reversal is unjust.
UE
UE - Remedies
- Restitution = related to benefits in the form of property, specifically recovering property and transferring it back to someone.
- Repetition = return of money.
- Recompense = this is when a benefit cannot be returned but it has a value - put a value on this benefit and pay that money value in return.
