Unjust enrichment is provided for in the General Principles of the Civil Law, and its legal effect is further stipulated in Chinese Civil Code. It seems to be taken for granted that, in the determination of the scope of restitution, a distinction should be made between bona fide enrichment and malicious enrichment. There is a consensus that unjust enrichment can be divided into payment enrichment and non-payment enrichment. However, if the provisions on the effect of restitution are applied indiscriminately to all unjust enrichment cases regardless of the differences between various factors of initiating restitution, the “non-unity theory” has no practical significance. In the case of invalidity or cancellation of a bilateral contract, the payment already made has no legal basis and constitutes unjust enrichment. However, Article 157 of Chinese Civil Code should be given priority among legal provisions applicable to the content of the restitution relationship. If the restitution of original property is not possible, the court should order compensation at the estimated price, rather than apply the provisions of Articles 986 and 987 of Chinese Civil Code. The most important objects of the application of these two articles are cases of one-party payment not based on bilateral contract and cases of right-infringement-type unjust enrichment. The party who is unjustly enriched pecuniarily has the obligation to return the amount of enrichment, and usually the issue of non-existence of the benefit from the enrichment does not arise in such cases. However, in cases of overpayment of wage, child support, and alimony, the non-existence of benefit is often defined broadly based on value judgment other than unjust enrichment law. The interpretation and application of Article 987 of Chinese Civil Code on compensation for losses resulting from malicious enrichment need to be clarified. If the compensation is considered to be a tort liability, the relationship between restitution for unjust enrichment and tort liability will become helplessly messy. |