Concept of Solutio indebiti
Solutio indebiti is a quasi-contract. It is based on the ancient principle that no one shall enrich himself unjustly at the expense of another. It is related to the recovery of what has been paid without just cause.
When solutio indebiti Arises
Solutio indebiti can arise in cases of payment by reason of mistake, where the creditor incurs the obligation to return what has been unduly delivered. It is connected to Article 2154 of the Civil Code, which deals with recovery of unduly made payments.
Obligation to Return
In a case of solutio indebiti involving payment by mistake, the creditor is obligated to return what has been unduly delivered. The recipient may be liable for legal interest, fruits, and responsible for loss or impairment, especially if acting in bad faith.
Limitations to Recovery
The recipient of the payment under solutio indebiti may be exempt from restoring the payment if:
- He believed in good faith that the payment was made of a legitimate and subsisting claim.
- He destroyed the document, allowed the action to prescribe, gave up the pledges, or cancelled the guaranties for his right.
This obligation regarding solutio indebiti does not apply to a payment made by a person interested in the performance of the obligation under Article 1236 of the Civil Code. Recovery is not possible if the payment of a natural obligation has prescribed.