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Legal Definitions - promutuum

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Definition of promutuum

Promutuum is a legal principle, primarily recognized in civil law systems, that establishes an obligation for a person to return money or property they received by mistake. It is not a formal contract that parties voluntarily enter into, but rather a legal duty imposed by the courts to prevent someone from unfairly benefiting from another's error.

Here are some examples to illustrate this concept:

  • Bank Transfer Error: Imagine a situation where Ms. Chen intends to transfer $1,000 to her sister, but due to a typo in the account number, the money is accidentally sent to Mr. Davies, a stranger. Mr. Davies received the $1,000 in error, and he did not earn it or have any prior agreement for it. Under the principle of promutuum, Mr. Davies has a legal obligation to return the mistakenly transferred funds to Ms. Chen, even though they never had a direct agreement.

  • Mistaken Delivery of Goods: A new electronics store mistakenly delivers a high-definition television to Mr. Evans's home, when it was actually intended for Ms. Rodriguez, who lives down the street. Mr. Evans received the television in error and did not order or pay for it. The legal concept of promutuum would require Mr. Evans to allow the store to retrieve the television or to return it himself, ensuring that he does not unfairly keep property that was not meant for him.

  • Payroll Overpayment: A company's payroll department makes an administrative error and accidentally pays an employee, Sarah, for 120 hours of work in a single week, when she only worked her standard 40 hours. Sarah received a significant overpayment in her paycheck due to this mistake. Promutuum dictates that Sarah has a legal duty to return the excess amount to her employer, as she received those funds in error and would be unjustly enriched by keeping them.

Simple Definition

Promutuum is a civil law concept referring to a quasi-contract. It occurs when a person mistakenly receives money or property and then agrees to return what was received to the person who paid it.

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