Table of Contents
- 1 What is constructive trust?
- 2 What is the purpose of a constructive trust?
- 3 What does it mean to impose a constructive trust?
- 4 What are the four elements of constructive trust?
- 5 What is constructive trust in land law?
- 6 What do you need for a constructive trust?
- 7 What are the duties of constructive trustees?
What is constructive trust?
Traditionally, the term “constructive trust” has been used in two ways. Second, the term “constructive trust” may also be used to mean relief granted to the claimant against a defendant which is personal in nature, eg where the defendant is “liable to account as a constructive trustee” to the claimant.
What is the purpose of a constructive trust?
A constructive trust is created to remedy (or make up for) a situation where there is “unjust enrichment.” If someone has possession of property (money, real estate, or other assets) that they should not have because they obtained it unfairly through fraud or breach of a fiduciary duty, this is unjust enrichment.
How do you prove a constructive trust?
The following must be shown for the court to impose a constructive trust: “(1) the existence of a res (property or some interest in property)’ (2) the right of a complaining party to that res; and (3) some wrongful acquisition or detention of the res by another party who is not entitled to it.” Communist Party v …
What is the effect of a constructive trust?
A constructive trust is an equitable remedy that may be granted to address a breach of, or to give effect to, an equitable doctrine or right. The order gives rise to an interest in existing in specie property or other rights.
What does it mean to impose a constructive trust?
A constructive trust is an equitable remedy imposed by a court to benefit a party that has been wrongfully deprived of its rights due to either a person obtaining or holding a legal property right which they should not possess due to unjust enrichment or interference, or due to a breach of fiduciary duty, which is …
What are the four elements of constructive trust?
The elements of a constructive trust are: (1) a promise; (2) transfer of the property and reliance thereon; (3) a confidential relationship; and (4) unjust enrichment.
What is constructive trust in family law?
A constructive trust is an equitable remedy (based on fairness) in which the court “constructs a trust” in favour of the non-owner spouse.
What is the difference between a resulting trust and a constructive trust?
A resulting trust is based upon the presumed intention that arises where a person provides funds for the purchase of property. A constructive trust is founded upon a common intention that can either be expressed or inferred but cannot be based upon an intention that the parties never in fact had.
What is constructive trust in land law?
Constructive trusts are trusts that may be implied in the absence of a declaration of trust, where the trustee has induced another to act to their detriment in the belief that if they do so act to their detriment they would acquire a beneficial interest in the land (Gissing v Gissing [1971] AC 881 Case summary).
What do you need for a constructive trust?
Constructive trust
- A holds funds that he knows have been paid to him by mistake.
- A holds an asset that he has obtained by means of fraud.
- A and another person (B) share a common intention that B should have a beneficial interest in an asset, and B has acted to his detriment on the basis of that intention.
What is constructive trust in real estate?
A constructive trust is a passive type of arrangement where one person holds property (whether real property, money, painting, a car, a bank account, or almost any other kind of property you can think of) as its nominal owner for the good of one or more beneficiaries.
What is a court-ordered constructive trust?
Constructive trusts are a form of equitable relief wherein the court creates a trust in order to prevent a defendant from being unjustly enriched. Constructive trusts are also used as a means to restore any losses that a plaintiff may have incurred due to abuses of trust funds. A constructive trust is a type of implied trust.
What are the duties of constructive trustees?
It will often be the case that the sole duty of a constructive trustee is to convey the property held on trust to the beneficiary But constructive trustees are also subject to other duties, such as the duty to account and the duty to preserve trust property pending its surrender to the claimant.
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