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Enrichment law / condiction

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Key Facts
  • Enrichment law regulates the reversal of unjustified transfers of assets in accordance with §§ 812-822 BGB.
  • The four types of claims for unjust enrichment are claims for performance, claims for interference, claims for expenses and recourse claims.
  • A claim for enrichment requires obtaining something at the expense of another and without legal justification.
  • The claim is for restitution, compensation for lost value and return of benefits.
  • Restrictions include the elimination of enrichment and the objection of deprivation.
  • Enrichment law has practical significance in areas such as contract law, banking law and family law.
  • Case law continues to develop, particularly in relation to digital markets and cross-border issues.

Definition and legal basis:

Enrichment law is a sub-area of the law of obligations and regulates the reversal of unjustified transfers of assets. It is codified in Sections 812-822 of the German Civil Code (BGB). The basic idea of unjust enrichment law is that no one should unjustly enrich themselves at the expense of another. It serves to compensate for shifts in assets that have taken place without legal justification.

Types of enrichment claims:

The BGB distinguishes between different types of enrichment claims:

1. condiction of performance (Section 812 (1) sentence 1 Alt. 1 BGB):
Reclaiming a service that was provided without legal justification.

2. encroachment condiction (Section 812 para. 1 sentence 1 alt. 2 BGB):
Compensation for an encroachment on third-party rights or legal interests.

3. reimbursement of expenses (Section 812 para. 1 sentence 2 alt. 2 BGB):
Compensation for expenses incurred for a success that did not occur.

4. recourse condiction (Section 812 (1) sentence 2 alt. 1 BGB):
Compensation for the fulfillment of a third-party liability.

Prerequisites of the claim for enrichment:

The following elements must be present for a claim for enrichment:

1. obtaining something:
pecuniary advantage on the part of the enriched party.

2. through performance or in any other way:
Type of asset transfer.

3. at the expense of another:
Reduction in the claimant’s assets.

4. without legal grounds:
Lack of a legal basis for the transfer of assets.

Scope and content of the claim for enrichment:

The claim for enrichment is based on:

1. surrender of what has been obtained (Section 818 (1) BGB)
2. in the event of impossibility: compensation for value (Section 818 (2) BGB)
3. surrender of benefits and surrogates (Section 818 (1) BGB)

Restrictions and objections:

Enrichment law has various restrictions:

1. cessation of enrichment (Section 818 (3) BGB):
No liability if the recipient is no longer enriched.

2. objection to enrichment:
Appeal to the loss of enrichment.

3. condiction bar (Section 814 BGB):
Exclusion of reclaim in the event of knowledge of non-debt.

4. balance theory:
Consideration of consideration in reciprocal contracts.

Practical significance and areas of application:

Enrichment law plays an important role in many areas:

1. contract law:
Rescission of void or contested contracts.

2. banking law:
Reclaiming incorrect transfers.

3. property law:
Compensation for encroachments on third-party rights.

4. family law:
Reclaiming benefits after the breakdown of a relationship.

5. copyright law:
Profit skimming in the event of infringements.

Differentiation from other legal institutions:

The right to enrichment must be distinguished from related claims:

1. claims for damages:
presuppose fault, enrichment law is independent of fault.

2. vindication:
Aims at the return of a certain thing, right of enrichment at compensation for value.

3. management without mandate:
Requires third-party management intent, enrichment law does not.

Process-related aspects:

When asserting enrichment claims in court, the following must be observed:

1. burden of proof:
The claimant must prove the conditions of the claim for enrichment.

2. limitation period:
Standard limitation period of 3 years (§ 195 BGB).

3. place of jurisdiction:
Generally at the defendant’s place of residence (Section 12 ZPO).

Current developments and case law:

The case law on unjust enrichment law is constantly evolving:

1. digital economy:
New issues in the reversal of digital goods and services.

2. international cases:
Increasing importance of the law of unjust enrichment in cross-border cases.

3. consumer protection:
Tendency towards increased protection of consumers in cases of enrichment.

4. complex financial products:
Challenges in the unwinding of complex financial instruments.

Summary and outlook:

Enrichment law is a fundamental instrument for correcting unjustified transfers of assets and ensuring justice in legal transactions. Its flexible application makes it possible to respond to a variety of situations in which a person’s assets have been increased without legal justification. In an increasingly complex and globalized business world, the law of enrichment continues to gain in importance, particularly in the context of new technologies and business models.

Future developments will probably require further differentiation and adaptation of the law of unjust enrichment to new economic realities. The challenge remains to find an appropriate balance between the protection of assets and the requirements of legal transactions. Case law will continue to be required to apply the classic principles of unjust enrichment law to new situations and, if necessary, to develop them further in order to meet the requirements of a changing society.

 

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