Constructive trust and Resulting trust


Constructive Trust- Constructive trust is an equitable remedy resembling a trust imposed by a court to benefit a party that has been wrongfully deprived of its rights due to either a person obtaining or holding legal right to property which they should not possess due to unjust enrichment or interference.

Events generating constructive trusts

In a constructive trust the defendant breaches a duty owed to the plaintiff. The most common such breach is a breach of fiduciary duty. A controversial example is the case of Attorney-General for Hong Kong v Reid,[3] in which a senior prosecutor took bribes not to prosecute certain offenders. With the bribe money, he purchased property in New Zealand. His employer, the Attorney-General, sought a declaration that the property was held on constructive trust for it, on the basis of breach of fiduciary duty. The Privy Council awarded a constructive trust. The case is different from Regal (Hastings) because there was no interference with a profit-making opportunity that properly belonged to the prosecutor.
Resulting Trust-A resulting trust is the creation of an implied trust by operation of law, as where property gets transferred to one who pays nothing for it; and then is implied to have held the property for benefit of another person. The trust property is said to "result" back to the transferor (implied settlor). In this instance, the word 'result' means "in the result, remains with", or something similar to "revert" except that in the result the beneficial interest is held on trust for the settlor. Not all trusts whose beneficiary is also its settlor can be called a resulting trust. In common law, the resulting trust refers to a subset of trusts which have such outcome; express trusts which stipulate that the settlor is to be the beneficiary are not normally considered resulting trusts. (or he might not be in the existence,Re Vandervall case)Presumption is Constructive Trust

The beneficial interest results in the settlor, or if the settlor has died the property forms part of the settlor's estate . And the distinguishment of beneficiary interest should be noted(Beneficial interest only will move but the beneficiary interest will not move)s53(1)(c).it remains with the person and Re Vandervall case has proven that only the Beneficial interest disappears but not the beneficiary interest.

Comments

  1. Shamsul Alam10 July 2021 at 22:07

    Good article.To know more about Cancun Mexico All Inclusive Resorts Call 1-800-749-4045 or visit Rooms101.com

    ReplyDelete
  2. Shamsul Alam26 March 2023 at 08:31

    Belize Real Estate & most of all Ambergris Caye Real Estate have seen a boom over recent years. Most of the buyers are people looking at living and/or investing overseas. This is seen by the growth in Belize real estate transactions over recent years.

    ReplyDelete

Post a Comment

Popular posts from this blog

Williams and Glyn's Bank v Boland

Facts Mr Michael Boland and Mrs Julia Sheila Boland lived on Ridge Park, Beddington, Surrey. Mr Boland, registered owner of the house, borrowed money from the bank for his building company, Epsom Contractors Ltd. Mr Boland failed to repay, and the bank sought possession. Mrs Boland argued that because she made substantial financial contributions to acquiring the home, she should be able to stay. The bank argued it did not qualify as a property right, basing its argument on the doctrine of conversion, and she should only get a share of any money made by her husband from the land, not a right enabling her to use it. Second, even if there was a property right, the bank’s defence was it registered its charge, and Mrs Boland’s right was not registered. The lack of registration defence does not work if the party claiming the unregistered right is in actual occupation. Then, that person has an overriding interest. But the bank argued that if she cohabited with her husband, she should not co
Read more

Lease

Image
Lease -A lease is an estate in land which therefore gives a proprietary interest in the land.It must be distinguishhed from a licence which only gives a personal right in the land. Essential characteristics of a lease -According to the principle of Street v Mountford a lease must have three characteristics,1.Exclusive possession 2.For a fixed or periodic term 3.At a rent.There are some exceptional cases which make a lease a licence.       The fact that the agreement is described as alicence does not prevent it from being a lease if the above characteristics are present.The only intention of the party which is relevent is the intention to grant exclusive possession.       There is no absolute principle of no rent,no lease,Ashburn Anstalt v Arnold Antoniades v Villiers (1988)-A case concerning wheather separate lease agreement were in fact a lease. The case involved an agreement for joint occupation of a furnished flat, the question being whether the occupiers enjoyed exclusive oc
Read more

Easement

Easements in English law are rights that one individual has over another's land. Rights recognised as easements most frequently include rights of way or light, and extend as far as the right to use a neighbour's lavatory, or to park a car on their land. The necessity of easements can be recognised by the Law Commission's recent findings that there are easements over at least 65% of registered freehold titles. In some circumstances for example, it may be impossible for one land owner to access a public highway without an easement of a right of way. The creation of easements is usually done expressly by deed, but easements may be implied where they are necessary, or would be reasonably expected to be held by a land owner, an approach which is not altogether uncontroversial, and has been the subject of recent reform proposals. Characteristics of easements Whilst an easement is essentially a right over another's land, any right claimed as an easement must satisfy the
Read more