Unjust Enrichment

Unjust enrichment is a legal principle that applies when one person benefits at the expense of another without legal justification or authorisation. In other words, it is a situation where someone gains something they should not have received, while the person who lost it did not receive compensation or consideration in return.

Unjust enrichment can occur in a variety of contexts, including contracts, torts, and even everyday transactions. For example, if someone mistakenly pays their neighbour's utility bill, the neighbour may be unjustly enriched by receiving a benefit they did not pay for.

To remedy unjust enrichment, the law provides for a restitutionary remedy, as explained in the previous question. The aim is to restore the injured party to the position they were in before the unjust enrichment occurred, by requiring the party who received the benefit to return it or compensate the injured party for its value.

In many cases, unjust enrichment can arise when there is no clear agreement or contract between the parties. However, even in cases where there is a contract, unjust enrichment may still occur if one party receives a benefit that was not agreed upon or outside the scope of the contract.

In conclusion, the concept of unjust enrichment is important in ensuring fairness and preventing individuals from benefiting from others' misfortune or mistake without legal justification.