Constructive Trusts Flashcards
What are the key points about constructive trusts?
They arise out of operation by law, regardless of the intention of the parties. One doesn’t choose to create a constructive trust.
They aim to achieve justice and good conscience.
They are not subject to the formalities requirements cuz no one intends to create them.
Intstitutional: equity says that one exists due to the occurrence of a certain event
Remedial: equity creates one where it believes that it is fair for defendant to hold a con trust on behalf of the principal- not recognised in England
Arise out of fiduciary relationship most of the time
What are the key points on liability to account
No pre existing fiduciary relationship
Someone comes into possession of property that’s been misappropriated or assists in its appropriation, may be liable for liability to account
Traditionally: under same umbrella as constructive trusts, but no longer cuz
Con trusts- proprietary
Liability to account - personal
