TITLE IV

UNDUE ENRICHMENT

Section 406.- Any person who, through an act of performance made by another person or in any other manner, obtains something to the prejudice of such other person without legal ground, must return it to the latter. The acknowledgement of the existence or non-existence of a debt is deemed to be an act of performance.

The same provisions shall be applied if something has been obtained on account of a cause which has not been realised or of a cause which has ceased to exist.

 

Section 407.- A person who has freely done an act as if in performance of an obligation, knowing that he was not bound to effect the performance, is not entitled to restitution.

 

Section 408.- The following persons are not entitled to restitution :

                (1) A person who performs an obligation subject to a time clause before the time has arrived;

                (2) A person who performs an obligation which has been barred by prescription ;

                (3) A person who performs an obligation n compliance with a moral duty or with the requirements of social propriety.

 

Section 409.- When a person, who is not a debtor, has performed an obligation by mistake and the creditor, in consequence thereof, has in good faith destroyed or obliterated the documentary evidence of the obligation or given up any security or lost his right by prescription, the creditor is not bound to make restitution.

The provisions of the foregoing paragraph do not prevent the person who has performed from exercising a right of recourse against the debtor and his surety, if any.

 

Section 410.- A person who had made a performance for an intended result which is not produced is not entitled to restitution, if, from the beginning, it was known to him that the production of the result was impossible or if he has prevented the result in violation of good faith.

 

Section 411.- A person who has made an act of performance, the purpose of which is contrary to legal prohibition or good morals, cannot claim restitution.

 

Section 412.- If the property which was unduly received is a sum of money, restitution must be made in full, unless the person, who received it, was in good faith in which case he is only bound to return such part of his enrichment as still exists at the time when restitution is demanded.

 

Section 413.- When the property, which must be returned, is other than a sum of money and the person, who received it, was in good faith, such person is only bound to return it in such condition as it is  and is not responsible for less or damage to such thing. But he must return whatever he has acquired as compensation for such loss or damage.

If the person, who received the property, was in bad faith he is fully responsible for the loss or damage even caused by force majeure, unless he proves that the loss or damage would have happened in any case.