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(p. 417) 11. Trusts 

(p. 417) 11. Trusts
(p. 417) 11. Trusts

Ben McFarlane

, Nicholas Hopkins

, and Sarah Nield

Page of

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date: 22 February 2020

All books in this flagship series contain carefully selected substantial extracts from key cases, legislation, and academic debate, providing able students with a stand-alone resource. This chapter describes how equitable interests in land are acquired by the creation of a trust. It addresses the acquisition of resulting and constructive trusts of land. A resulting trust arises in favour of A when A purchases or contributes to the purchase of land held by B, or in some cases where A transfers land to B without receiving anything in return. Constructive trusts arise in a number of circumstances in which it is considered unconscionable for the legal owner to assert his or her own beneficial ownership, and to deny the beneficial interest of another. They arise under the doctrine in Rochefoucauld v Boustead, and the Pallant v Morgan equity. The doctrine in Rochefoucauld v Boustead imposes a constructive trust to prevent a transferee of land from fraudulently relying on the absence of compliance with formalities to deny a trust pursuant to which the land was transferred. The Pallant v Morgan constructive trust arises where one party acquires land pursuant to an informal commercial joint venture and reneges on an agreement that another party will have an interest in the land. The trust has been categorized as a form of ‘common intention constructive trust’ but this categorization is contentious.

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