Question $5$

$(17$ marks$)$

Read the fictitious scenario below and answer the questions that follow:

Eric owes Chad R $700,000\mathrm{.}00.$ Eric and Chad agree that the money can be paid into Chad's account on the $1^{st}$ of March $2024.$ Eric completes the payment and sends the proof of payment to Chad. Chad reviews the document and notices that the money has been paid into the incorrect bank account. He alerts Eric who checks the payment and discovers that the payment had erroneously been made to Oliver. Eric contacts Oliver and learns that R $700,000\mathrm{.}00$ had been paid into his back account, but none of the money has been used yet as Oliver was not sure why he had received the payment in the first place. Oliver is$,$ however, now refusing to refund the money.

Required:

$5\mathrm{.}1.$ Identify and describe the legal principle under the law of obligations that is applicable to the given scenario.

$(5$ marks$)$

$5\mathrm{.}2.$ With specific reference to the requirements of the legal principle identified in Question $5\mathrm{.}1$ above, discuss whether Eric would be able to succeed with a claim against Oliver.

$(12$ marks$)$