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Equity/Trusts: Possible Qs on Constructive Trusts

If there was an essay question on the topic of constructive trusts, what possible areas do you think it could be about?

I'm just trying to figure out the possibilities and which issues I should maybe focus my on revision a bit more.

Also, if there was a problem Q instead on constructive trusts, what other areas of Equity/Trusts do you think maybe linked into the Q? Implied/Resulting trusts is an obvious one.

Any advice/guidance will be much appreciated. :frown:
Reply 1
Original post by Steph90
If there was an essay question on the topic of constructive trusts, what possible areas do you think it could be about?

I'm just trying to figure out the possibilities and which issues I should maybe focus my on revision a bit more.

Also, if there was a problem Q instead on constructive trusts, what other areas of Equity/Trusts do you think maybe linked into the Q? Implied/Resulting trusts is an obvious one.

Any advice/guidance will be much appreciated. :frown:

With constructive trust I would honestly focus in on the issue of Matrimonial Homes and if and when they break down, how the curts decide on the equitable share/ benefit each individual is entitled too. Cases to review are Gissing v Gissing, Pettite v Pettite, Fowler v Barron, and Stack v Dowden.
The issue to consider is intention of the parties not just how much money each has spent or not spent on the marital home. Each case is decided on the individual facts of that case.
Another area I would look at is the area I cal the unwilling trustee, when a third party profits from a transaction ( issue being whether they did this knowingly or not) and how the courts react in these types of situations. Key cases: Royal Brunei Airliine v Tan and Pooly Peck v Nadir

Overall remember that constructive trust s of which there are two types (Institutional & Remedial) are concerned about unconcionability and someone in a fiduciary position benefitting from trust business.

Other key cases to consider: Keech v Sandman and Boardman v Phipps

Hope this helps
Reply 2
Original post by vnupe

Original post by vnupe
With constructive trust I would honestly focus in on the issue of Matrimonial Homes and if and when they break down, how the curts decide on the equitable share/ benefit each individual is entitled too. Cases to review are Gissing v Gissing, Pettite v Pettite, Fowler v Barron, and Stack v Dowden.
The issue to consider is intention of the parties not just how much money each has spent or not spent on the marital home. Each case is decided on the individual facts of that case.
Another area I would look at is the area I cal the unwilling trustee, when a third party profits from a transaction ( issue being whether they did this knowingly or not) and how the courts react in these types of situations. Key cases: Royal Brunei Airliine v Tan and Pooly Peck v Nadir

Overall remember that constructive trust s of which there are two types (Institutional & Remedial) are concerned about unconcionability and someone in a fiduciary position benefitting from trust business.

Other key cases to consider: Keech v Sandman and Boardman v Phipps

Hope this helps


Thanks for that, very helpful.

I have revised most of what you have said.

Just one more question: Am i correct in thinking you are referring to Polly Peck v Nadir (No.2)? If so could you please just give me a brief overview of the principle of that case and how it is relevent in this context?

For Knowing Assistance and Knowing receipt, I have it as case in regards to it requiring there to be 'dishonesty' (as opposed to merely constructive knowledge to meet the 4 requirements set out in Baden?)

Thanks.
Reply 3
Original post by Steph90
Thanks for that, very helpful.

I have revised most of what you have said.

Just one more question: Am i correct in thinking you are referring to Polly Peck v Nadir (No.2)? If so could you please just give me a brief overview of the principle of that case and how it is relevent in this context?

For Knowing Assistance and Knowing receipt, I have it as case in regards to it requiring there to be 'dishonesty' (as opposed to merely constructive knowledge to meet the 4 requirements set out in Baden?)

Thanks.



Yes that is the case that I was referring to (stupid predictive text caused me to write it wrong LOL). Basically the question was asked whether the Central Bank knowingly aided Nadir in his fraud... It was held that though they helped him in his endeavor there was insufficient evidence proving that they knew what he was doing was fraudulent, which was alsowhy the tracing claim failed as well.
Reply 4
Original post by vnupe

Original post by vnupe
Yes that is the case that I was referring to (stupid predictive text caused me to write it wrong LOL). Basically the question was asked whether the Central Bank knowingly aided Nadir in his fraud... It was held that though they helped him in his endeavor there was insufficient evidence proving that they knew what he was doing was fraudulent, which was alsowhy the tracing claim failed as well.


Thanks, that has helped significantly.

Also I repeated the case name, not because of your typo but because of the 'No.2' at the end. There was about 6/7 different ones showing up in LexisNexis, so I just wanted to clarify. :smile:
Reply 5
Any Ideas?

In 1975, unmarried couple David and Amanda bought a freehold house called Drayton Mansion together. The legal title was placed in their joint names. The purchase was financed by a mortgage loan, and the mortgage bills were regarded as a joint responsibility by the couple. They both contributed in proportion to their income, and by the time the mortgage was discharged Amanda had paid 60% of the total purchase costs, and David 40%.

In 2008 their relationship broke down when David began seeing another woman, Melanie. Having just inherited a large sum of money from a distant relative, he was able to buy a new house, Bellville Bungalow, without the assistance of a mortgage. David and Melanie moved in after the purchase, but the legal title was put in the name of Melanie alone. At the time, David said to her ‘I would have put it in our joint names, but I don’t want Amanda to find out about this’. Melanie gave up her council flat to move in, and spent a summer refurbishing the property.

Subsequently, Amanda also started a new relationship with a man named Nigel. He moved out of the freehold property he owned and moved into Drayton Mansion with Amanda. He did not pay any rent, but after seeing to a number of repairs around the house, Amanda told him he could “stay for good”. Nigel then sold his freehold property and invested the proceeds in the stock market.

In late 2010 David wrote to Amanda saying “I want Drayton Mansion sold so I can get the money for my interest in the property”. However, the house was not sold and a month later they both decided suddenly to end their new relationships and get back together. David moved back to Drayton Mansion whilst Melanie continued to live in Bellville Bungalow alone. Melanie suggested that she buy out David’s interest in Bellville Bungalow, and David readily agreed. A price was decided, but before the sale went through David died unexpectedly. In his will he left all of his property to Beatrice, his sister. Beatrice is short of money and wants to realise the cash value of any land assets she has gained. Nigel continues to live in Drayton Mansion, and Amanda now wants him to leave. He has refused, saying he was promised he could stay and he has nowhere else to go.

Explain the property rights of the surviving parties, addressing the following points specifically:

i) The extent of Beatrice’s interests in Drayton Mansion and Bellville Bungalow, if any.
ii) How Beatrice might seek a sale of Drayton Mansion and Bellville Bungalow, if she were found to have an interest in either property.
iii) Whether Nigel has any claim to be able to stay at Drayton Mansion.

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