Law Notes Aspects Of Obligations Notes
Aspects Of Obligations notes fully updated for recent exams in the UK. These notes cover all the major LLB aspects cases and so are perfect for anyone doing an LLB in the UK or a great supplement for those doing LLBs abroad, whether that be in Ireland, Canada, Hong Kong or Malaysia (University of London).
These notes were formed directly from a reading of the cases and main texts and are vigorous, concise and very well written. Everything is conveniently split up by topic as you can see by th...
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Unjust Enrichment (III): defences
Defences
Estoppel
General
Operation
Estoppel will arise where D detrimentally changes his position in reliance of a representation made by C that a benefit was validly received. This is a complete bar because its effect is to stop C arguing that the elements of unjust enrichment have been established
United Overseas Bank v Jiwani (1976) (HC) – McKenna J – three conditions must be satisfied: [1] D led to believe that he or she is entitled to a benefit, [2] D relies on this, [3] D’s circumstances have changed so that restitution would be inequitable
Justice of the Case
United Overseas Bank v Jiwani (1976) (HC) – McKenna J – estoppel will still fail if it is not just to require D to make restitution to C, e.g. if D was under a duty to inform of the mistake
Defendant Led to Believe He Is Entitled to a Benefit
General
Must have been an unequivocal representation or a duty of accuracy to D which C breached
RE Jones v Waring and Gillow (1926) (HL) – Lord Sumner –these are cumulative conditions and both must be satisfied in every case
The better view is that they are alternative:
United Overseas Bank v Jiwani (1976) (HL) – McKenna J –assumed that these are alternative conditions
Representation of Fact
RE Jones v Waring and Gillow (1926) (HL) – representation must be collateral to the transfer and cannot be implied from the mere fact of voluntary transfer. It must be made by C rather than a third party
Representations of fact may be express or implied
Deutsche Bank v Beriro (1895) ( ) – C mistakenly told D that a bill of exchange had been collected, and C paid money to D. C sought to recover this when he realised it was a mistake but was estopped because of the express representation he had made
Holt v Markham (1923) (CA) –C paid D money and then asked for it back, saying that D was not entitled to it because he was retired. D informed C that he was not in fact retired but didn’t hear back for another two months. C eventually asked for the money back, saying that it was mistaken on another ground. Scrutton LJ – found an implied misrepresentation in the fact that a payor should inform payee of any mistakes within a reasonable time of payment. This seems artificial because it is a misrepresentation from the mere fact of transfer.
Bankes and Warrington LJJ –founded misrepresentation by the fact that C had failed to respond to the letter
Duty of Accuracy
Even if there was no representation, estoppel may be made out if C owed a duty of accuracy to D which was breached. The inference is that if such a duty is owed, C makes a representation by the virtue of the transfer
* National Westminster Bank v Barclays Bank (1975) (HC) – bank does not owe a duty of accuracy when it honours a cheque
Greenwood v Martins Bank (1933) (HL) – but where aware of facts relating to validity of the transfer of the payment, C may be under a duty to disclose these facts to D
Reliance By Defendant
General
D must have relined on C’s representation. So D cannot rely on estoppel if he knew he was not entitled to a certain benefit but did not inform C of this
Change of Circumstances
Causation
D must establish that but for the receipt of the benefit from C, his circumstances would not have changed in the way they did (e.g. if you were going to spend the money on something anyway estoppel is not available)
* Avon County Council v Howlett (1983) (CA) – overpaid teacher checked with local authority to see if he was being overpaid. He spent the additional amount and authority was estopped. In addition, teacher had adjusted their expenditure accordingly. Estoppel was still available notwithstanding that some of this had been spent on day-to-day things
Detriment
If D spends the money on something that increases in value, the detriment requirement will not have been satisfied
Holt v Markham (1895) (CA) – e.g. making a bad investment. * Avon County Council v Howlett (1983) (CA) – e.g. failing to claim social security benefits
Consequences of a Successful Estoppel Defence
General
The consequence is that D may not have spent all the money he received, but restitution is entirely barred (e.g. even where he has only spent a small portion of the money received). This is because estoppel is an evidentiary defence that stops C adducing facts which contradict the representation on which D has detrimentally relied
* Avon County Council v Howlett (1983) (CA) – claim entirely barred even though only 546 out of 1007 had been spent
De Minimis
One way of reducing the harsh effects is to impose a de minmis principle
Apportionment of Payments
Burrows – a single representation of fact could be divided into different representations which operate only to the extent that D’s position has been changed
This is unworkable when only one payment has been made to D, but seems okay when a number of payments have been made
Imposition of Conditions
Jones v Waring and Gillow (1926) (H) – Viscount Cave and Lord Atkinson – you could make application of the defence conditional on D accepting that he would return part of the benefit in respect of which his circumstances have not been changed
Quaere whether court has the jurisdiction to get such an undertaking from D
Shifting the Burden of Proof
* Avon County Council v Howlett (1983) (CA) –Cumming-Bruce LJ –burden of proof could be shifted so that once D has shown he has suffered detriment, C must prove that D’s circumstances have changed only in respect of part of the benefit he received
Seems unworkable because C is unlikely to know of D’s financial circumstances
Unconscionability
* Avon County Council v Howlett (1983) (CA) –Eveleigh LJ – might be unconscionable for D to retain part of the benefit in respect of which his position has not changed. Cumming-Bruce LJ – also recognised might lie on the ground that it would be inequitable for D to retain benefit, but...
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Aspects Of Obligations notes fully updated for recent exams in the UK. These notes cover all the major LLB aspects cases and so are perfect for anyone doing an LLB in the UK or a great supplement for those doing LLBs abroad, whether that be in Ireland, Canada, Hong Kong or Malaysia (University of London).
These notes were formed directly from a reading of the cases and main texts and are vigorous, concise and very well written. Everything is conveniently split up by topic as you can see by th...
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