Unjust Enrichment
What is unjust enrichment?
a common law cause of action which addresses the 'unjust enrichment' of a defendant at the
expense of a claimant
example:
Party A intends to make a bank transfer to Party B. However, unbeknown to Party A, the
funds have been mistakenly paid into the bank account of Party C. Party C has refused to
pay the funds back. In this scenario, Party C has been unjustly enriched at the expense of
Party A.
3 Elements of a claim for unjust enrichment
The defendant has been enriched or has received a benefit;
The enrichment of the defendant is unjust; and
The enrichment of the defendant was at the expense of the claimant.
‘Unjust’ enrichment factors
The claimant must also prove that the enrichment is ‘unjust’
Failure to provide consideration – for example, if the claimant took action to benefit the
defendant in anticipation of the parties entering into a contract, but this does not later
happen;
Mistake – if the claimant made a payment to the defendant by accident and wants a refund;
Duress – if the claimant transfers the benefit after receiving a threat or after being
persuaded;
Undue influence – if the defendant takes advantage of the claimant’s trust; and / or
If the defendant has been enriched as a result of his or her own wrongdoing.
What is unjust enrichment?
a common law cause of action which addresses the 'unjust enrichment' of a defendant at the
expense of a claimant
example:
Party A intends to make a bank transfer to Party B. However, unbeknown to Party A, the
funds have been mistakenly paid into the bank account of Party C. Party C has refused to
pay the funds back. In this scenario, Party C has been unjustly enriched at the expense of
Party A.
3 Elements of a claim for unjust enrichment
The defendant has been enriched or has received a benefit;
The enrichment of the defendant is unjust; and
The enrichment of the defendant was at the expense of the claimant.
‘Unjust’ enrichment factors
The claimant must also prove that the enrichment is ‘unjust’
Failure to provide consideration – for example, if the claimant took action to benefit the
defendant in anticipation of the parties entering into a contract, but this does not later
happen;
Mistake – if the claimant made a payment to the defendant by accident and wants a refund;
Duress – if the claimant transfers the benefit after receiving a threat or after being
persuaded;
Undue influence – if the defendant takes advantage of the claimant’s trust; and / or
If the defendant has been enriched as a result of his or her own wrongdoing.
