Constructive Trusts Flashcards
What are the types of constructive trusts?
1) anticipatory constructive trust, 2) the one under which a non-bona fide third-party recipient transferred under a breach of trust. and 3) the one in which individuals acquire for the first time an interest in another’s property because of their past dealings or relationship with the legal owner.
What are the kinds of anticipatory constructive trusts?
1) the principle of ‘Re rose’.
2) vendor-purchaser constructive trusts.
What is the principle of ‘Re Rose’?
once a legal owner of property has done everything that he is required to do to transfer the property, he will hold the property on constructive trust for the transferee until legal title actually passes.
What is the principle behind the vendor-purchaser constructive trust?
Equity will treat the vendor as having transferred the title to the land to the buyer the moment the time for completion under the contract arrives, so long as the purchaser paid the purchase price already (ie all the contractual terms have been fulfilled).
for a non-bona fide transfer by the trustee to a third party who is liable for the breach?
the trustee, or the dishonest assistant, or the knowing recipient.
for ‘the one which individuals acquire for the first time an interest in another’s property because of their past dealing with the legal owner’ what are the different kinds?
1) proprietary estoppel.
2) an employee who breaches his fiduciary duty to his employer by taking a bribe holds property in constructive trust for the employer.
3) when through an understanding A tells B to buy property for joint-ownership but B puts it exclusively in his name then B holds property in constructive trust for A and B.
4) Mutual wills: where two people make wills on the understanding that the survivor will not alter his will, in order to prevent fraud alterations later, the survivor holds their property in constructive trust to give effect to the terms of the mutual will.
5) fraud or theft.
6) Trusts of the family home.
when through an understanding A tells B to buy property for joint-ownership but B puts it exclusively in his name then B holds property in constructive trust for A and B. What case illustrates this?
Pallant v Morgan.
Mutual wills: where two people make wills on the understanding that the survivor will not alter his will, in order to prevent fraud alterations later, the survivor holds their property in constructive trust to give effect to the terms of the mutual will. Which case illustrates this?
Dufours v Pereria.
Which case illustrates the principles for the trusts of the family home?
Stack v Dowden.
