Draft Common Frame of Reference:VII. — 2:101 Circumstances in which an enrichment is unjustified

Draft Common Frame of Reference

VII. — 2:101 Circumstances in which an enrichment is unjustified

Geldend

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(1)

An enrichment is unjustified unless:

(a)

the enriched person is entitled as against the disadvantaged person to the enrichment by virtue of a contract or other juridical act, a court order or a rule of law; or

(b)

the disadvantaged person consented freely and without error to the disadvantage.

(2)

If the contract or other juridical act, court order or rule of law referred to in paragraph (1)(a) is void or avoided or otherwise rendered ineffective retrospectively, the enriched person is not entitled to the enrichment on that basis.

(3)

However, the enriched person is to be regarded as entitled to an enrichment by virtue of a rule of law only if the policy of that rule is that the enriched person is to retain the value of the enrichment.

(4)

An enrichment is also unjustified if:

(a)

the disadvantaged person conferred it:

(i)

for a purpose which is not achieved; or

(ii)

with an expectation which is not realised;

(b)

the enriched person knew of, or could reasonably be expected to know of, the purpose or expectation; and

(c)

the enriched person accepted or could reasonably be assumed to have accepted that the enrichment must be reversed in such circumstances.

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