Legal Definitions - money had and received

Money Had and Received refers to a legal claim used to recover money that one party has received but, in fairness and good conscience, belongs to another party. This type of claim is often brought when someone has been unjustly enriched, meaning they have obtained money that they are not legally or morally entitled to keep, even if there was no formal contract or wrongdoing involved. The law implies a promise by the recipient to return the money.

Here are some examples illustrating when a claim for "money had and received" might arise:

• Example 1: Accidental Overpayment

  A small business accidentally pays a supplier twice for the same invoice due to an administrative error. The supplier receives the duplicate payment, meaning they have been paid more than they are owed for the goods or services provided. In this situation, the small business could bring a claim for "money had and received" to recover the overpaid amount from the supplier, as the supplier has money that rightfully belongs to the business.

• Example 2: Payment for Undelivered Services

  A homeowner hires a landscaping company and pays a significant deposit upfront for a major garden renovation project. Before any work begins, the landscaping company unexpectedly goes out of business and never performs the services. The homeowner has paid money for services that were never rendered. The landscaping company, or its liquidator, now holds money that, in good conscience, should be returned to the homeowner. The homeowner could pursue a claim for "money had and received" to recover their deposit.

• Example 3: Mistake of Fact in Transfer

  An individual intends to send a payment to their internet service provider but mistakenly enters the bank account details for a different, unrelated company. The unrelated company receives the payment, which was clearly not intended for them and was sent under a mistaken belief by the sender. The recipient company now has money that belongs to the individual and was received without any entitlement. The individual could use a "money had and received" claim to compel the mistaken recipient to return the funds.