Principles of Private Law

The Melbourne JD Trimester 2, 2005 Dr. Paul Vout

Lecture 10 Restitution for Unjust Enrichment

The role of restitution for unjust enrichment The demise of quasi-contract and implied assumpsit Elements What is unjust? Defences
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Lecture Objectives

By the end of this lecture you should: Understand the concept of unjust enrichment and its remedy Understand where unjust enrichment fits into the matrix of private law (the law of snot?) Be aware of the terms quasicontract and implied assumpsit
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A Third Force?
Seen by some as the third force in a trinity of private law: contract, tort - and unjust enrichment Legal relief in contract is based on compensation for a failure to perform or complete an exchange breach of voluntarily assumed obligation Legal relief in tort is based upon compensation for the harm flowing from a legal wrong breach of an imposed obligation Legal relief in unjust enrichment involves neither the requirement of a wrong, nor relief by way of compensation It is the restitution or restoration of a benefit gained in specific circumstances whichPaul Vout are Introduction to Private Law - The Melbourne JD - Dr. 4 Trimester 2, 2005 regarded in law as unjust

Demise of Quasi-contract and Implied Assumpsit

Trimester 2, 2005

Courts traditionally looked for some implied agreement that if the intention behind a payment was vitiated, the payment could be recovered Referred to as quasi-contract, which in turn arose from implied assumpsit an implied undertaking by a party This basis for restitution in a range of circumstances was rejected in favour of the doctrine of restitution for unjust enrichment in Pavey & Matthews Pty Ltd v
Introduction to Private Law - The Melbourne JD - Dr. Paul Vout

Elements
See United States Restatement of Restitution A benefit which has been unjustly received (the enrichment) A loss or detriment suffered, usually by the plaintiff A rule of law which deems the enrichment (or the retention of it) unjust A prima facie duty to make restitution Absence of a valid legal basis for the payment or transaction (including voluntariness or election)Melbourne JD - Dr. Paul Vout Introduction to Private Law - The 6 Trimester 2, 2005

Unjust
The doctrine seeks to unify the principles upon which restitution has been required in diverse causes of action These have in Australia included payments made by mistake (of law or fact); and Payments or benefits received under a contract made invalid or unenforceable by statute money had and received, and quantum meruit Other possibilities: - compulsion; - unconscionable conduct? Must vitiate the intention to enrich the 7 Trimester 2, 2005 defendant. Introduction to Private Law - The Melbourne JD - Dr. Paul Vout

Restitution

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Implies the giving up of something Is the same process as discussed in the case of rescission of contracts Involves giving up the benefit or its value in money Does not involve the payment of an expected price or the compensation of a loss Is the restoration of the items or the payment of what is fair and reasonable in lieu thereof
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Defences

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Payer intends that the payee should have the payment in all events (voluntary payment and/or election) Payment is made for good consideration Payee acted to its detriment in reliance on the payment and in good faith probably must point to expenditure which can be ascribed to the mistaken payment see David Securities Pty Ltd v Commonwealth Bank of Australia (1992) 175 CLR 353 at 385
Introduction to Private Law - The Melbourne JD - Dr. Paul Vout

Resulting or Implied Trusts Included?

Imperfect gifts, purchase in anothers name, failure of an express trust, surplus after fulfillment of purpose Recipient holds the intended gift on trust for the donor Similar traits as unjust enrichment, though different genesis Involves a rebuttable presumption that the resulting trust was intended
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