Abstract

Abstract The object of this essay is to consider the rules governing the restitution of benefits conferred by mistake. We present a simple economic model to aid the analysis of the legal doctrines that have been used by the courts. Within mistake we shall concentrate on the law on mistaken payments because it is the most developed. We have therefore used it as a model to identify and evaluate the range of possible rules which might be available. In this we have drawn on the fact that restitution based on the principle of unjust enrichment has reached differing states of development in common law jurisdictions in the United States, Canada, and England,1 with an apparently sophisticated system in the first two but not in the third. We shall argue that those systems with a developed and sophisticated law of restitution are not necessarily more efficient.

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