Advantages Of Constructive Trust

2358 Words10 Pages
Constructive trust has no fine-tuned calibrated in English law. It can be viewed as evenhanded gadgets, precept or remedies. A helpful trust is an apparatus imagined by the court of chancery whereby the proprietor or gain of the legitimate gainful enthusiasm for portable or resolute property is needed by value to hold it gainfully for a third party on the ground that it would be unconscionable for the previous to attest useful proprietorship. Here are some of its features. It is not made by the gatherings to it but rather it starts to be through operation of law. Secondly, it does not depend for its existence upon the intention of parties to it.
Constructive trusts are major remedy for breach of fiduciary duty. A constructive trust will also
…show more content…
It might not apply for husband and wife only but unmarried partners. The courts have taken many ways to identify to whom the equitable property rights arise in such circumstances. In Canada the courts have emphasized the unjust enrichment that the defendant would obtain if the claimant were to receive no share in the property. Where else, in New Zealand the reasonable expectations of the party claiming an equitable share in the property . In England the 1st benchmark case for the family home constructive trust is Pettitt v Pettitt and Gissing v Gissing which laid down the ‘common intention’ approach. In Pettitt v Pettitt, Lord Diplock stated the only when matrimonial home relationship breakdown, there will be a problem. On this basic he said common intention could be inferred in gissing. The questions that need to be asked are that what was the common intention as to beneficial interest of the property should be at the time property bought? In finding the common intention between the parties, the court must declare the parties had actually intended under constructive trust. Lord Diplock pointed that the court should have imposed a common intention constructive trust on the basic what they would have decided had they given it any thoughts.In Gissing v Gissing, Lord Diplock stated the beneficial interest must be shared when there is a…show more content…
What he always does is that he gave orders to third party in order for him to make commission. The claimant was not happy and wanted to prevent the defendant from dealing with certain investments purchased with the money received on the basis that the defendant was a constructive trust. The court held that Stubbs to pay the profits which he got to the plaintiff. It was more likely to be a debtor and creditor rather than a trustee and a beneficiary. Contrasting the case of A-G Hong Kong v Reid (1994) 1 AC 324, (1994) 1 All ER 1,PC which resolved the issue of Lister & co v Stubbs (1890) 45 Ch D 1,59 LjCh 570,38 wr 548, in Reid the Privy Council held that there was bribe under the trust property from outside. The New Zealand Court of Appeal applied Lister’s case and dismissed the claim. However, The Privy Council held that case of Lister was wrongly decided. Lord Templeman stated that as soon as the bribe received, whether in cash or kind of false fiduciary held to bribe on constructive trust for the person injured. The case of A-G for Hong Kong gave a big impact that it basically abolish the personal unauthorized and transform it to proprietary. There are certain facts that can make the statement above strong and whether it can be justified or

More about Advantages Of Constructive Trust

Open Document