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Gissing v Gissing

[1971] AC 886

Case summary last updated at 08/01/2020 14:56 by the Oxbridge Notes in-house law team.

Judgement for the case Gissing v Gissing

The wife did not contribute anything to the purchase price nor the mortgage. She did however contribute to the cost of furnishing the house. It was discussed that if her household contributions meant that the husband was unable to pay the mortgage then she would have an interest. HL held that the wife had made no contribution to the purchase of the home from which they could infer that she was intended to have a share. The majority held that the courts had no power to just distribute family property according to what was ‘just’. Rather a constructive trust could only arise on the basis of common intentions. Lord Diplock’s comments reflect that he took a broader approach (see below). 
 
Lord Diplock: “A resulting, implied or constructive trust - and it is unnecessary for present purposes to distinguish between these three classes of trust - is created by a transaction between the trustee and the cestui que trust in connection with the acquisition by the trustee of a legal estate in land, whenever the trustee has so conducted himself that it would be inequitable to allow him to deny to the cestui que trust a beneficial interest in the land acquired. and he will be held so to have conducted himself if by his words or conduct he has induced the cestui que trust to act to his own detriment in the reasonable belief that by so acting he was acquiring a beneficial interest in the land.” 

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