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PVL3704 Assignment 1 Answers Semester 2 2026 - Due 17 August 2026

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PVL3704 Sem2 Assessment 1 2026 Due: 17 August 2026 Question 1 Discuss (by reference to relevant case law) the requirement that the enrichment must have been sine causa. (10) Question 2 A is the owner of a car manufacturing factory in Gqeberha (formerly known as Port Elizabeth). He recently settled his electricity bill in full with the Nelson Mandela Metropolitan Municipality. However, to his surprise he has just received a letter from the same municipality in which they threaten to cut his electricity if he doesn’t immediately pay his “arrear account” of R300 000. A knows that there must be a mistake, because his account is paid in full, but also knows that if there is a disruption in his electricity supply, he will suffer severe losses. He pays the amount immediately and sends a letter of complaint to the Municipality. Advise A whether he will be able to reclaim the R300 000 he paid, and if

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PVL3704
ASSIGNMENT 1
DUE DATE: 17 AUGUST 2026

, PVL3704 ASSIGNMENT 1 2026

DUE: 17 AUGUST 2026



QUESTION 1

Discuss (by reference to relevant case law) the requirement that the enrichment
must have been sine causa.



The Purpose of the Sine Causa Requirement

The requirement that enrichment must be sine causa (without legal cause) serves as
the essential limiting factor in the law of unjustified enrichment. Without this
requirement, enrichment liability would be so broad as to bring all commercial
transactions within its scope every profitable contract would constitute an enrichment at
someone else's expense, which would effectively bring commerce to a halt.¹ The sine
causa requirement therefore restricts liability to those cases where it would be
inequitable to allow a person to retain benefits obtained at another's expense.²



2. Defining the Sine Causa Requirement

Two prominent definitions have been advanced in South African law:

Van der Walt's Definition: Enrichment is sine causa if there is no obligation existing
between the enriched party and the impoverished party in terms of which the
impoverished party could lay claim to the transfer of assets.³



¹ PVL3704 Study Guide 1, p 13, 21 ff (discussing the sine causa requirement as a limiting factor in
enrichment liability).
² PVL3704 Study Guide 1, par 1.1.4 and 2.3 (general principles of enrichment liability).
³ Van der Walt's definition as discussed in PVL3704 Study Guide 1, p 21-22. Tutorial Letter 201/1/2016, p

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