PVL3704 Assignment 1 Semester 2 2024 | Due 15 August 2024. All questions answered with references.
Question 1
Discuss in general (without reference to a specific enrichment action) how the extent of enrichment liability (or the quantum of the enrichment claim) will be calculated. (10)
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Question 1
1. Discuss in general (without reference to a specific enrichment action) how the extent of
enrichment liability (or the quantum of the enrichment claim) will be calculated.
The concept of enrichment liability, or the quantum of an enrichment claim, is rooted in the
principles of unjustified enrichment in legal theory. This doctrine ensures that one party does not
benefit at the expense of another without just cause. The calculation of the extent of enrichment
liability involves determining the amount by which the plaintiff has been impoverished and the
defendant has been enriched, with the lesser of these two amounts being the quantum of the claim.
The fundamental principle guiding the calculation of enrichment liability is that the plaintiff is
entitled to recover either the amount by which they have been impoverished or the amount by which
the defendant has been enriched, whichever is lesser. This ensures a fair balance, preventing unjust
enrichment while not penalizing the defendant beyond the extent of their actual benefit. The
determination of this amount is typically fixed at the time of the institution of the action (litis
contestatio).
However, several exceptions exist to this general rule. These exceptions recognize situations where
the enrichment liability might be fixed at an earlier date than the lodging of the claim. Such
circumstances include cases where the defendant becomes aware of their unjust enrichment, should
have realized the benefit might later constitute unjust enrichment, falls into default (mora debitoris),
or acts in bad faith (mala fide).
In practice, if a defendant's enrichment is diminished or lost before the action is instituted, their
liability is correspondingly reduced or extinguished. This principle was illustrated in cases like King
v Cohen and Govender v Standard Bank of South Africa Ltd, where the courts held that the
defendant's liability would decrease if the enrichment was no longer present at the time of the
lawsuit.
To claim non-enrichment, the defendant bears the burden of proof. They must demonstrate that the
diminution or loss of enrichment occurred through no fault of their own. This defense acknowledges
that liability should be equitable and just, not extending beyond the actual benefit derived from the
enrichment.
Furthermore, the law also accounts for specific circumstances such as minors enriched through
unauthorized contracts, where liability is fixed at the time of litis contestatio. This special
consideration underscores the nuanced approach of the law to various scenarios to ensure fairness
and justice.
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