A man and a woman entered into a transaction according to which they would finance the purchase of six apartments in equal parts, and the rights to such would be divided equally. In practice, the man breached the contract and transferred all the funds deposited with him to his children, for the purpose of purchasing apartments for them.
The Court held that the woman is entitled to half of the rights in the purchased apartments. Israeli law stipulates that the person who was unjustly enriched at another’s expense must return the property to such person. This principal also applies to a third party who purchased a property while enriching himself at another's expense if he did not give the person consideration against the property, even if the purchase was made in good faith. Here, even if the children did not know about their father's breach towards the woman, they unjustly enriched themselves at her expense because they bought the apartments with her money without giving her any consideration and therefore the woman is entitled to half the rights in the apartments.