A plaintiff claiming money had and received on the basis of total failure of consideration must prove the purpose or condition of the payment and that it failed; the mere fact of payment and non-repayment is insufficient. Where a trial judge rejects the testimony of both parties as to the purpose of a payment, the court cannot presume that the payment was made for a purpose giving rise to an obligation to repay. The illegality defence in restitutionary claims requires careful consideration of the exceptions identified in Nelson v Nelson and is not to be applied in an absolute manner. The question of whether an appellate court should infer illegality where it was not pleaded or properly raised at trial, and where an unrepresented party was not advised of its significance, was left unresolved as between the majority and dissent.
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