Legal Definitions - solutio indebiti

Solutio indebiti is a legal principle originating from Roman law that refers to the payment or transfer of something (like money or property) to another person under the mistaken belief that a debt or obligation is owed, when in fact, no such debt exists. If such a payment is made in error, the recipient has a legal duty to return what they received.

• Example 1: A homeowner receives an unexpected bill from their internet provider for an additional $75, which they promptly pay. A week later, they receive a corrected statement showing that the initial bill was sent in error and the additional $75 was not actually owed. The homeowner had mistakenly paid a nonexistent debt.

  Explanation: The payment of the extra $75 was a solutio indebiti because there was no actual legal obligation for the homeowner to pay that amount. The internet provider, having received the payment made in error, is legally obligated to refund the overpaid sum to the homeowner.

• Example 2: A small business owner accidentally pays a supplier twice for the same order due to a clerical error in their accounting system. The first payment cleared successfully, but a second, identical payment was processed a few days later for the same invoice number.

  Explanation: The second payment to the supplier constitutes a solutio indebiti. The business owner mistakenly paid a debt that had already been settled and therefore no longer existed. The supplier, having received the duplicate payment made in error, is legally required to return the excess funds to the business owner.

• Example 3: An individual intends to transfer $500 to their sibling as a birthday gift via an online banking app. Due to a typo, they accidentally select a different contact with a similar name and transfer the money to a stranger instead.

  Explanation: The transfer of $500 to the stranger is a solutio indebiti. Although intended as a gift for someone else, the payment to the stranger was made entirely in error, as there was no underlying debt or obligation whatsoever to that specific recipient. The stranger, having received funds they were not entitled to, is legally bound to return the money.