Constructive Trust

Question 1

Constructive Trust

Answer 1

remedy to prevent unjust enrichment; T’s sole obligation is to transfer property to intended beneficiary determined by court

Question 2

Constructive Trust - When Created

Answer 2

1. PET T makes self-dealing profit
2. Will: fraud in inducement or undue influence
3. Secret Trust
4. Oral RE Trust

Question 3

Constructive Trust - Secret Trust

Answer 3

Gift to A, who orally promises to to hold f/b/o B

Parol E okay; constructive trust to get property to B

Question 4

Constructive Trust - Oral RE Trust

Answer 4

Deed to A, who orally promises to hold f/b/o B

Parol E ok in 3 cases; constructive trust to get property to B

3 Cases: (1) fiduciary relation between S and A; (2) fraud in inducement on A’s part; (3) B’s detrimental reliance (possession + improvements)