ESTABLISHING TOTAL FAILURE OF BASIS

By far the most significant ground of restitution which is founded on the principle of failure of basis arises where the basis has failed totally. Restitution can be awarded where no part of the condition on which the transfer of a benefit to the defendant is contingent has been fulfilled. So, for example, if the claimant pays the defendant in advance the purchase price of a car which the defendant fails to deliver, the basis for the payment will have failed totally since the claimant failed to receive any benefit, and the defendant will be required to repay the advance payment. The reason that total failure of basis is recognized as a ground of restitution is because, where the transfer is qualified by virtue of a condition which fails, the transfer can be considered to be non-voluntary.41

(A) THE REQUIREMENTS FOR ESTABLISHING TOTAL FAILURE OF BASIS

Where a claimant wishes to obtain restitution on the ground of total failure of basis certain requirements must be satisfied. Whether a particular requirement applies depends on the nature of the restitutionary claim.

 
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