Illustrate the mistakes in Performance

Question

Illustrate the mistakes in Performance?

Answer 1

When a party to a contract mistakenly gives a benefit to the other party (e.g., pays too much), the recipient will be required to restore the benefit to the mistaken party if that recipient knows of the mistake. Where the recipient honestly believes she is entitled to advantages of remedy is more difficult. The courts have been moving gradually toward imposing an obligation based on the concept of unjust enrichment: if in all circumstances the recipient would be unjustly enriched by keeping the benefit, she will be ordered to make restitution to the mistaken party.