LAW OF OBLIGATION ACT, PART 10, CHAPTER 52, DIVISION 1

Chapter 52

UNJUSTIFIED ENRICHMENT 

Division 1

General Provisions

  • 1027. Definition of unjustified enrichment

A person shall transfer to another person, on the bases of and to the extent provided for in this Chapter, that which is received from the other person without legal basis.

Division 2

Reclamation of That Which Is Received as Result of Performance of Obligation  

  • 1028. Bases for reclamation of that which is received as result of performance of obligation

(1) If a person (recipient) receives anything from another person (transferor) for the performance of an existing or future obligation, the transferor may reclaim it from the recipient if the obligation does not exist or is not created or if the obligation ceases to exist later.

(2) A transferor does not have the right to reclaim that which is received by the recipient from the recipient if:

1) the obligation performed by the transfer is imperfect;

2) the right to demand performance of the obligation has expired by the time of the transfer;

3) the reclamation of that which is received as a result of a void transaction would be contradictory to the provision which prescribes the nullity of the transaction or to the objective of such provision.

  • 1029. Reclamation of that which is transferred to third party at order of obligee

If a transferor performs an obligation with respect to a third party at the order of an obligee or person whom the transferor erroneously believes to be an obligee, the transferor may, in the case specified in subsection 1028 (1) of this Act, only demand that which is transferred be returned by the obligee or person whom the transferor erroneously believed to be an obligee.

  • 1030. Specifications regarding reclamation of that which is transferred to perform contract entered into for benefit of third party

(1) If a transferor transfers anything to a recipient to perform a contract entered into for the benefit of the recipient, the transferor may, in the case specified in subsection 1028 (1) of this Act, also demand that which is transferred to the other party or a person whom the transferor erroneously believed to be a party be returned thereby.

(2) If the other party or a person believed to be a party is not aware and is not required to be aware that the contract or the obligation arising from the contract of which performance is desired does not exist, the return of that which is received may only be demanded from the recipient.

  • 1031. Specifications regarding reclamation of that which is transferred in case of waiver of claims

If, after the waiver of a claim, something is transferred to a new obligee for the performance of an obligation arising from the waived claim but the waived claim does not exist, is not created or ceases to exist later, the transferor may also demand that which is transferred to the person who waived the claim be returned thereby.

  • 1032. Extent of claims

(1) In the case specified in subsection 1028 (1) of this Act, the transferor may demand that the recipient return that which is received and any gains derived therefrom. In the event of the destruction or consumption of, damage to or seizure of the transferred object, the transfer of that which is acquired in compensation for such object may be demanded.

(2) If it is impossible to deliver that which is received due to the nature thereof or for any other reason, the recipient shall compensate the usual value thereof at the time when the right to reclaim was created.

  • 1033. Extent of claim in event of no basis for enrichment

(1) The recipient is not required to return that which is received or compensate the value thereof to the extent to which the recipient is not enriched thereby due to the destruction or consumption thereof, damage thereto or seizure thereof or for any other reasons.

(2) If the recipient believes that the ownership of that which is received is permanent and as a result thereof incurs costs, the recipient is required to transfer that which is received or compensate the value thereof only if the costs incurred by the recipient are compensated to the recipient.

(3) Costs related to the transfer of that which is received, costs incurred upon compensation of the value thereof, and the risk of accidental loss or damage upon transfer of that which is received shall be borne by the transferor.

  • 1034. Restrictions on filing of claims in case of nullity of mutual contract

(1) If a mutual contract is void, the recipient may rely on the provisions of subsection 1033 (1) of this Act with respect to the right to reclaim that which is received on the basis of the contract only if the contract is void due to the restricted active legal capacity of the recipient or due to threats or violence on the part of the transferor.

(2) If a mutual contract is void, the recipient is not required to transfer that which is received or compensate the value thereof if it was destroyed or it deteriorated due to circumstances for which, had the contract been valid, the transferor would have been responsible.

(3) If a mutual contract is void, the parties shall transfer that which is received by them or compensate the value thereof simultaneously. The provisions of § 111 of this Act apply correspondingly.

  • 1035. Liability of recipient in event of knowledge of non-existence of basis for transfer

(1) The provisions of § 1033 of this Act do not apply if, at the time of the transfer, the recipient is or ought to be aware of circumstances which, pursuant to the provisions of this Chapter, constitute a basis for the reclamation of that which is received.

(2) The provisions of § 1033 of this Act do not apply either if the destruction or consumption of or damage to that which is received occur or expenses are made thereon after the recipient becomes or should have become aware of circumstances which, pursuant to the provisions of this Chapter, constitute a basis for reclamation of that which is received.

(3) In the cases specified in subsections (1) and (2) of this section, the recipient shall:

1) transfer the gains derived from that which is received;

2) pay interest to the extent provided by law for any money received;

3) compensate for any profits not gained from that which is received which the recipient could have gained by adhering to the rules of regular management.

(4) In the event of the destruction of or damage to that which is received and if the recipient is or should be aware of circumstances which, pursuant to the provisions of this Chapter, constitute a basis for reclamation of that which is received, such recipient shall compensate for the damage caused due to the destruction thereof or damage thereto to the transferor if the destruction or damage was caused by the fault of the recipient.

  • 1036. Claim for transfer against third party

If the recipient transfers that which is received to a third party without charge and if compensation cannot be obtained from the recipient, the third party shall, pursuant to the provisions of this Chapter, transfer that which is received.

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