Unjust Enrichment

Definition

Unjust Enrichment is a legal principle where one party benefits unfairly at the expense of another party, often requiring restitution to the disadvantaged party.

Purpose

The principle of unjust enrichment aims to prevent one party from being unjustly enriched without compensating the other party, ensuring fairness and equity in transactions. It is often invoked in situations where no formal contract exists but where one party has conferred a benefit on another.

Examples of Use

• Mistaken Payments: Requiring repayment of money mistakenly paid to someone who is not entitled to it.
• Services Rendered: Seeking compensation for services provided when the recipient has benefited without a formal agreement.
• Property Improvements: Demanding restitution when someone improves another's property under the belief they owned it.

Related Terms

• Restitution: The act of restoring or compensating for loss or damage.
• Quasi-Contract: An obligation imposed by law to prevent unjust enrichment in the absence of a contract.
• Equity: A branch of law that deals with fairness and justice, often used in cases of unjust enrichment.

Notes

Unjust enrichment claims often require proving that one party received a benefit at the expense of another and that it would be inequitable for the recipient to retain that benefit without compensating the provider.