Titles in the Complete series combine extracts from a wide range of primary materials with clear explanatory text to provide readers with a complete introductory resource. The chapter looks at the nature of fiduciary duty and how someone becomes a fiduciary. The liability of fiduciaries for breach of trust is considered. Bribery and secret profits are explained, the meaning, nature, and approaches to constructive trusts are studied, and the various circumstances in which constructive trust might emerge are discussed. These include remedial and institutional constructive trusts. The liability of third parties (strangers) in constructive trusts as trustees de son tort, dishonest assisters, and those in knowing receipt are considered. The meanings of ‘knowledge’ and ‘dishonesty’ in this area of the law are explained, as is the level of liability of constructive trustees.
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Chapter
15. Constructive trusts and fiduciary duty
Chapter
17. Trusts of the family home
Titles in the Complete series combine extracts from a wide range of primary materials with clear explanatory text to provide readers with a complete introductory resource. Cohabiting couples could save themselves considerable legal trouble and expense if they make a written declaration of trust when acquiring a home to live in, but most do not. This chapter discusses the following: that cohabitation gives no special legal status; that a trust of land must be in writing; and that resulting and constructive trusts are an exception to the writing requirement. It also looks at the difference between the two categories of trust in Lloyds Bank v Rosset and the difference between the claim to an equitable interest in the property and the quantification of that interest as explained in Stack v Dowden.
Chapter
2. The different types of trust
Titles in the Complete series combine extracts from a wide range of primary materials with clear explanatory text to provide readers with a complete introductory resource. This chapter examines the different types of trust, how they are used, and the nature of a trust. The many uses of trusts in the modern world, from pensions to the ownership of the family home and the preservation of family wealth are explained. The discussions cover the meanings of trust and property; what trusts are used for; what an equitable interest is; classification of trusts; resulting trusts; constructive trusts; implied trusts; Quistclose-type trusts; and wills and intestacies.
Chapter
7. Constructive Trusts
Paul S Davies and Graham Virgo
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 focuses on constructive trusts, which arise by operation of law without regard to the intentions of the parties. They are triggered by a defendant’s unconscionable conduct; however, in some cases, a constructive trust will be recognized even though the defendant has not acted unconscionably, such as the constructive trust that arises once a contract to sell land has been made. A remedial constructive trust is recognized by some jurisdictions, whereby equitable proprietary rights arise through the exercise of judicial discretion, but such a trust is not recognized in England and Wales. As with express trusts, title over particular property that is held on constructive trust is split between trustees and beneficiaries, but a constructive trustee is not subject to the same duties as an express trustee.
Book
Warren Barr and John Picton
Pearce & Stevens’ Trusts and Equitable Obligations provides a detailed and contextualized account of the law of equity and trusts. The text gives detailed analysis of all key decisions, statutes, and current academic debates related to the law of equity and trusts, providing a grounding in the subject. This new edition, which includes substantial additions on trusts of the family home, charities, and wills and intestate succession, brings the law coherently together. The text has been updated with recent cases and developments in the area, including Stoffel and Co v Grondona [2020] UKSC 42 on illegality, Manchester Building Society v Grant Thornton UK LLP [2021] UKSC 20 on advisor liability, Webb v Webb [2020] UKPC 22 on beneficial ownership, and Matthew v Sedman [2021] 1 UKSC 19 on the running of time limits in limitation actions.
Chapter
10. Alternative Succession
This chapter is concerned with the various ways in which succession to property may occur on death, other than by intestacy or by a will executed under s. 9 of the Wills Act 1837. The subject-matter can be divided for the purposes of exposition broadly into two categories: alternative wills, and alternative entitlement. Alternative wills include privileged wills and statutory wills. Alternative entitlement includes nominations, donatio mortis causa, constructive trusts, and proprietary estoppel. Many of the alternative succession mechanisms considered in the chapter are potentially difficult. Most of them are by definition exceptions to the formality requirements considered in Chapter 5. That said, most mechanisms of ‘alternative’ succession have a clear rationale and are appropriately contained.
Chapter
3. Wills: Nature, Characteristics, and Contents
This chapter provides an introduction to wills. A will or testament is the declaration in a prescribed manner of the intention of the person making it with regard to matters which he wishes to take effect upon or after his death. The general effect of a will is that the legal interest in the deceased’s estate passes to his personal representatives, while the beneficiaries obtain a form of equitable right in it. The chapter discusses the long history of the will in English law; contracts relating to wills; mutual wills; secret trusts, other constructive trusts, and proprietary estoppel; the content of wills; and the will as a social document.
Chapter
10. Constructive trusts
This chapter turns to constructive trusts, the second main category in informal trusts. At its simplest, the term ‘constructive trust’ describes the circumstances in which property is subjected to a trust by operation of law. Unlike an expressly declared trust, a constructive trust does not come into being solely in consequence of the express intention of a settlor. Unlike automatic resulting trusts, it does not fill gaps in beneficial ownership. Like presumed resulting trusts, intention can form an important element in its genesis. As such, a constructive trust is a trust which the law imposes on the trustee by reason of their unconscionable conduct.
Chapter
Lysaght v Edwards (1876) 2 Ch D 499, Chancery Division
Essential Cases: Equity & Trusts provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in Lysaght v Edwards (1876) 2 Ch D 499, Chancery Division. The document also includes supporting commentary from author Derek Whayman.
Chapter
11. Beneficiaries
This chapter examines the nature of the rights of the beneficiaries of a trust, particularly where there is an express trust. It explains that the beneficiary gains equitable rights once a private trust has been validly created and they can enforce these rights against the trustee. It emphasizes that the nature of the right that is enforceable by the beneficiary depends on the nature of the trust that has been established and that the rights of beneficiaries under resulting and constructive trusts are limited. This chapter also considers the formality requirements for the disposition of equitable interests and when it is possible for the beneficiaries to terminate the trust.
Chapter
Lloyds Bank Plc v Rosset [1991] 1 AC 107, House of Lords
Essential Cases: Equity & Trusts provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in Lloyds Bank Plc v Rosset [1991] 1 AC 107, House of Lords. The document also includes supporting commentary from author Derek Whayman.
Chapter
Stack v Dowden [2007] UKHL 17, House of Lords
Essential Cases: Equity & Trusts provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in Stack v Dowden [2007] UKHL 17, House of Lords. The document also includes supporting commentary from author Derek Whayman.
Chapter
Jones v Kernott [2011] UKSC 53, Supreme Court
Essential Cases: Equity & Trusts provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in Jones v Kernott [2011] UKSC 53, Supreme Court. The document also includes supporting commentary from author Derek Whayman.
Chapter
Crossco (No 4) Unlimited v Jolan Ltd & Ors [2011] EWCA Civ 1619, Court of Appeal
Essential Cases: Equity & Trusts provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in Crossco (No 4) Unlimited v Jolan Ltd & Ors [2011] EWCA Civ 1619, Court of Appeal. The document also includes supporting commentary from author Derek Whayman.
Chapter
Williams v Central Bank of Nigeria [2014] UKSC 10, Supreme Court
Essential Cases: Equity & Trusts provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in Williams v Central Bank of Nigeria [2014] UKSC 10, Supreme Court. The document also includes supporting commentary from author Derek Whayman.
Chapter
Re Montagu’s Settlement Trusts [1987] Ch 264, Chancery Division
Essential Cases: Equity & Trusts provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in Re Montagu’s Settlement Trusts [1987] Ch 264, Chancery Division. The document also includes supporting commentary from author Derek Whayman.
Chapter
Murad v Al-Saraj [2005] EWCA Civ 959, Court of Appeal
Essential Cases: Equity & Trusts provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in Murad v Al-Saraj [2005] EWCA Civ 959, Court of Appeal. The document also includes supporting commentary from author Derek Whayman.
Chapter
FHR European Ventures LLP v Cedar Capital Partners LLC [2014] UKSC 45, Supreme Court
Essential Cases: Equity & Trusts provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in FHR European Ventures LLP v Cedar Capital Partners LLC [2014] UKSC 45, Supreme Court. The document also includes supporting commentary from author Derek Whayman.
Chapter
Re Goldcorp Exchange Ltd [1995] 1 AC 74, Privy Council
Essential Cases: Equity & Trusts provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in Re Goldcorp Exchange Ltd [1995] 1 AC 74, Privy Council. The document also includes supporting commentary from author Derek Whayman.
Chapter
17. Constructive trusts
Titles in the Core Text series take the reader straight to the heart of the subject, providing focused, concise, and reliable guides for students at all levels. This chapter focuses on constructive trusts, which are trusts that arise by operation of law. It identifies the variety of circumstances in which a constructive trust may arise, and discusses two important examples of constructive trusts: the vendor-purchaser constructive trust and the common intention constructive trust. More broadly, the chapter considers the role of the common intention constructive trust, equitable accounting, and the proprietary estoppel in determining interests under informal arrangements concerning family property.
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