A payment made voluntarily to reimburse clients for losses before completion of an investigation into the full extent of those losses constitutes a misprediction rather than a recoverable mistake, and the payer assumes the risk of further losses being discovered. A payment made to forestall an honest claim is so closely analogous to a payment in response to an honest claim that recovery is barred on the same basis. A law firm is vicariously liable for an employee's fraudulent misappropriation of trust funds where the employee was authorised to handle those funds, even though the fraud was committed for the employee's own benefit.
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