The knowledge test for accessorial liability under both limbs of Barnes v Addy requires at least knowledge of circumstances which would indicate the facts to an honest and reasonable person (the fourth Baden category). Where a business practice of invoicing for work done by third parties is established as common in the relevant industry, a party who participates in such an arrangement without actual knowledge of fraud may not possess the requisite knowledge for accessorial liability. The change of position defence to a restitution claim for money paid under mistake of fact extends to amounts paid on to third parties in good faith, even where the third party was a fraudulent vehicle.
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