Semester 2 2025 - DUE 21 August 2025; 100%
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MULTIPLE CHOICE,ASSURED EXCLLENCE
QUESTION 1
Discuss in general (without reference to a specific enrichment
action) how the extent of enrichment liability (or the quantum
of the enrichment claim) will be calculated.
(15 marks)
The extent of enrichment liability, also referred to as the
quantum of the enrichment claim, is determined by assessing
the amount by which the defendant was enriched and the
plaintiff was impoverished. The foundational principle is that a
person who is unjustly enriched at the expense of another must
compensate the other to the extent of that enrichment, but not
beyond it.
Here’s how the quantum is generally calculated:
1. Time of Assessment
Enrichment is determined at the time the action is
instituted (i.e. the time of litis contestatio), not at the time
the enrichment took place.
, However, courts also consider whether the enrichment
still exists (i.e. whether it is retained or has been disposed
of in good faith).
2. Enrichment Ceiling
The maximum amount a plaintiff can claim is the value by
which the defendant has been enriched.
This ensures that the claim is limited to actual gains
received by the defendant and prevents undue
punishment.
3. Impoverishment Floor
The minimum requirement is that the plaintiff must have
suffered a corresponding loss (impoverishment) due to the
enrichment.
If there is no loss to the plaintiff, there is no claim, even if
the defendant is enriched.
4. Concurrency Principle
Enrichment must correspond to the impoverishment, i.e.
there must be a causal link between the plaintiff's loss and
the defendant's gain.
5. Subtraction vs. Value Approach
In South African law, the value approach is usually
preferred: