This is an extract of our Constructive Trusts document, which we sell as part of our GDL Equity and Trusts Notes collection written by the top tier of Cambridge/Bpp/College Of Law students.
The following is a more accessble plain text extract of the PDF sample above, taken from our GDL Equity and Trusts Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:
E&T: Constructive Trusts Introduction
- Constructive trust: arises by operation of law, not dep. on parties' intentions. imposed by equity: when justice + good conscience require person in possession of property to hold it for another. cf. resulting trusts: where failure to dispose of whole beneficial interest. last resort: when court feels trust should be imposed + no other form exists in circumstances. have been imposed in variety of situations: but list not closed.
- Substantive or remedial?
constructive trustee's duty : usually, only to transfer property to beneficiary ? appears remedy. vs. substantive trusts: duty to administer property for beneficiary. 'remedial' constructive trust: widely accepted in USA, Canada, Australia, NZ. substantive constructive trust: view adopted by English courts. substantive rights to beneficiary over property - Westdeutsche Landesbank Girozentrale v Islington LBC . significant difference - timing of operation: esp. effect on third parties with interests in property. 'remedial' CT: operates from time of court order. substantive CT: existing proprietary interest - from date of circs. giving rise to CT.
Categories of Constructive Trusts
- Trustees' unauthorised profits. trustee: duty not to profit from position ? CT of profits for trust fund + beneficiary. e.g. Keech v Sandford .
- Other fiduciaries' profits: same principle as trustee.
Buy the full version of these notes or essay plans and more in our GDL Equity and Trusts Notes.