Legal Definitions - indebitum

Indebitum is a legal concept, originating in Roman law, that refers to a payment made for a debt that was not actually owed. It describes a situation where an individual transfers money or other assets under the mistaken belief that they have a legal obligation to do so, when in reality, no such obligation exists. Historically, a person who made an indebitum payment was generally entitled to recover it.

Here are some examples illustrating the concept of indebitum:

• Double Payment of an Invoice: A small business owner receives an invoice for office supplies and pays it promptly. Due to an administrative error by the supplier, the business owner receives an identical invoice for the same supplies a week later and mistakenly pays it a second time.

  Explanation: The second payment made by the business owner is an indebitum because the debt for the office supplies was already satisfied with the first payment. The business owner did not owe the amount a second time, making the subsequent payment for a non-existent obligation.

• Payment for a Cancelled Service: A customer signs up for a year-long gym membership and pays the full annual fee upfront. Two months later, the customer decides to move to a different city and successfully cancels their membership, receiving confirmation from the gym. However, due to an oversight in the gym's billing department, the customer's credit card is automatically charged for another full year's membership at the end of the initial term.

  Explanation: The charge for the subsequent year's membership, once paid, constitutes an indebitum. The customer had already cancelled the service and was no longer obligated to pay for it, meaning the payment was made for a debt that was not legally due.

• Payment to the Wrong Beneficiary: A beneficiary of a trust is supposed to receive a quarterly distribution from the trust fund. The trustee mistakenly sends the distribution to an individual who was previously a beneficiary but is no longer entitled to receive payments due to a change in the trust's terms.

  Explanation: The payment made to the former beneficiary is an indebitum. While a distribution was owed from the trust, it was not owed to that specific individual at that time. The payment was made to a party who had no legal claim to it.