Publisher's Synopsis
People often make mistakes when making payments. The mistake may be as to the correct amount of a bill or as to whom the money is owed. Where the mistake has led to an overpayment, should the person who made the payment be able to recover the amount of the over-payment? At present, the answer to this question depends on whether the mistake is one of fact or one of law. In this consultation paper, the Law Commission reviews the general rule that payments made under a mistake of law are irrecoverable. The rule has been the subject of criticism for some time, and the courts have to an extent acknowledged the unfairness of an absolute rule through the wealth of exceptions and qualifications created. The provisional view of the Commission, on which the comments of all interested parties are sought, is that the different treatment of mistakes of law and mistakes of fact is not justified, that the present law produces anomalies and that there is a case for abolishing the rule precluding recovery of payments made under a mistake of law.
