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Unjust Enrichment Claims

I transferred money to the wrong person. Can the bank reverse it?

Banks usually cannot reverse a completed transfer without the recipient's consent. If the recipient refuses, you must sue them for unjust enrichment.

What if I paid for a service without a contract?

If you provided a service expecting payment but no contract was signed, you may claim compensation under unjust enrichment for the value of the service provided.

Does the recipient have to pay interest?

Yes, if the recipient knew or should have known they weren't entitled to the money, they must pay interest from the time of receipt.

Can I claim unjust enrichment if the contract was breached?

Usually, no. If a valid contract exists, you should sue for breach of contract damages. Unjust enrichment applies when there is *no* valid contract or it is void.

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Unjust Enrichment Claims: Recovering Unlawfully Obtained Benefits

Unjust Enrichment is a fundamental institution of civil law designed to restore fairness. It occurs when one person obtains a property benefit at the expense of another without any legal ground (contract, law). For example, if you mistakenly transferred money to the wrong account, or paid a debt you did not actually owe, the recipient has been unjustly enriched. The law obliges them to return the benefit received.

An unjust enrichment claim (condiction) is used when other legal mechanisms (e.g., breach of contract or tort) do not apply. It is a "last resort" lawsuit. However, succeeding is difficult because the plaintiff must prove that the enrichment occurred at their expense and had no legitimate basis. Legal.ge offers access to experienced lawyers who will help you recover mistakenly paid funds or unlawfully appropriated property.

What Does Unjust Enrichment Service Cover?

Specialists on Legal.ge assist with the following issues:

  • Case Qualification: Determining whether it is truly a case of unjust enrichment or if the relationship fits into another legal framework.
  • Recovering Mistaken Transfers: Communicating with banks and recipients, and if necessary, litigating to recover funds.
  • Consequences of Void Contracts: When a contract is declared void, but parties have already exchanged services or money. The lawyer ensures "restitution" (restoration of the original state).
  • Compensation for Expenses on Another's Property: If you acted in good faith to renovate someone else's apartment believing it was yours, you can claim compensation for expenses incurred.
  • Performance Without Obligation: Situations where a person performed work in the hope that a contract would be signed later, but it never happened.

Common Scenarios and Real-World Examples

Unjust enrichment claims arise in various contexts:

  • Bank Error: A company mistakenly transferred salary to an ex-employee's account. The employee is obliged to return the money.
  • Double Payment: A debtor mistakenly paid the same invoice twice. The excess amount constitutes unjust enrichment.
  • Improvements: A tenant conducted expensive renovations in a rented apartment without the owner's consent. If the lease does not provide for compensation, the owner might be considered unjustly enriched (though this is disputable and depends on details).
  • Failed Deal: A buyer paid a deposit, but the sale contract was not finalized (void due to lack of form). The seller must return the money.

Georgian Legal Framework

Unjust enrichment is regulated by Articles 976-991 of the Civil Code of Georgia:

Article 976 (Basic Rule): A person who has received a property benefit through another person's performance without a legal ground is obliged to return this benefit. The same rule applies if the legal ground existed initially but later ceased to exist (e.g., cancellation of a contract).

Scope of Return: The recipient must return not only what they received but also any benefits (e.g., interest, fruits) derived from that property.

Exclusion: A claim will not be satisfied if the performer knew they were not obliged to perform but did so anyway (e.g., as a gift or due to moral duty).

Step-by-Step Service Process

Working with a lawyer on Legal.ge involves:

  1. Analysis: Determining if the recipient had a legal basis (contract, law).
  2. Demand: Sending a written request to the recipient for voluntary return of funds/property.
  3. Lawsuit: Filing a condiction claim in court.
  4. Proof: Demonstrating that the payment was made by mistake and not intended as a gift.
  5. Recovery: Enforced collection of funds.

Why Choose Legal.ge?

Unjust enrichment cases are legally complex because the line between a "gift" and a "mistake" is often blurred. Legal.ge gives you access to professionals who can correctly assess the situation and choose the right defense strategy. Do not lose your money due to a mistake or someone else's dishonesty — consult an expert.

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