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The Principles of Equity & Trusts

The Principles of Equity & Trusts (4th edn)

Graham Virgo
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date: 29 November 2021

p. 62420. Personal Liability of Third Partieslocked

p. 62420. Personal Liability of Third Partieslocked

  • Graham VirgoGraham VirgoProfessor of English Private Law, University of Cambridge; Senior Pro-Vice-Chancellor (Education), University of Cambridge; Fellow of Downing College, Cambridge; Bencher of Lincoln’s Inn


This chapter examines the personal liability of third parties when there is a breach of trust or breach of fiduciary duty. It explains that there are two types of personal liability of third parties. One is receipt-based liability when a third party has received property in which the beneficiary or principal has an equitable proprietary interest and the other is accessorial liability when the third party has encouraged or assisted a breach of a trust or fiduciary duty. The elements of different causes of action relevant to receipt-based liability and accessorial liability are examined, notably the action for unconscionable receipt and the action of dishonest assistance. The controversial question of whether liability should be strict or fault-based is considered and, if the latter, the nature of the fault requirement.

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