LAW OF OBLIGATION ACT, PART 10, CHAPTER 52, DIVISION 4

Division 4

Compensation of Costs Incurred for Benefit of Other Persons 

  • 1041. Claim arising from performance of obligation of other person

A person who performs an obligation of another person without being entitled or required to do so may demand the compensation of costs incurred in the performance thereof from the person whose obligation the person performed, in so far as the person has enriched due to release from the obligation during the time when the person becomes or should become aware of the filing of a claim for compensation of costs against the person.

  • 1042. Requirement to compensate costs

(1) A person who incurs costs with regard to an object of another person without a legal basis therefor may demand compensation of the costs to the extent to which the person on whose object the costs are incurred has been enriched thereby, taking into consideration, inter alia, the fact of whether such costs are useful to the person and the intent of the person with regard to the object. Determination of the extent of enrichment shall be based on the time when the person with regard to whose object costs are incurred has the object returned or is able to begin to use the increased value of the object in any other manner.

(2) A person who incurs costs has no right of claim provided for in subsection (1) of this section if:

1) the person with regard to whose object costs are incurred demands the removal of improvements made by means of the incurred costs and if the removal of such improvements is possible without causing damage to the improvements;

2) the person who incurs costs fails, due to circumstances arising from the person, to notify the other person in time of the intent to incur costs;

3) the person with regard to whose object costs are incurred has contested the incurrence of the costs in advance;

4) the incurrence of costs with regard to the object is prohibited arising from law or the contract.