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All ▸ Bar 2024 ▸ CIVIL LAW ▸ II. HUMAN RELATIONS ▸ B. Unjust Enrichment (Civil Code, arts. 22-23 and 2142-2143)

Question

II. HUMAN RELATIONS: B. Unjust Enrichment (Civil Code, arts. 22-23 and 2142-2143)

In a certain business transaction, Mr. Reyes mistakenly transferred a substantial amount of money to Ms. Santos, thinking that it was payment for a debt owed to him. Upon realizing the error, Mr. Reyes demands that Ms. Santos return the money. However, Ms. Santos refuses, claiming that she has already used the funds to pay off her own debts.

Using the principles of unjust enrichment provided for in Articles 22-23 and 2142-2143 of the Civil Code, analyze the following scenarios:

  1. Discuss the legal rights and remedies available to Mr. Reyes in order to recover the mistakenly transferred money.
  2. Under what circumstances can Ms. Santos be held liable for unjust enrichment? Provide supporting arguments based on the relevant provisions of the Civil Code.
  3. Explain the concept of restitution as a remedy for unjust enrichment. How does it apply in this situation? Discuss any limitations or exceptions that may arise.


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