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Constructive Trust

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How do the courts deal with Constructive Trust in the Trust of the Family Home? – Is Constructive Trust governed by coherent guidelines or is it a mere fallacy?

Scholastic research shows many attempts at defining a Trust . While this area of law has developed over the years, its purpose has always been to confer a benefit to a beneficiary for a specified purpose under the control of a trustee. A constructive trust is therefore not a ‘real’ trust by the traditional definition of a trust and often referred to as a legal fiction created by the courts as a remedy for unjust enrichment. According to Watts (2011), a constructive trust arises by operation of law where the facts are such that it would be unconscionable for an owner to deny that another …show more content…
While this view does not assert that the two concepts ‘can or should be completely assimilated’ it recognizes that there is a significant area of overlap between them.

On this point, Watts (2011) reasoned that: “If A says anything which can be construed as a declaration of trust, and B relies on this to his detriment, B obtains an interest under a constructive trust”.

The definitions by both Professor Beale and Watts highlights the intimacy shared between constructive trust and proprietary estoppel. Case law also supports this claim.

In Pascoe v Turner (1978) the defendant had been assured by the plaintiff that ‘the house is yours and everything in it .’ The defendant relied on this assurance and carried out improvements to the house. The plaintiff’s solicitors wrote to the defendant giving her two months’ notice to ‘determine her licence to occupy’ the house and demanded possession. She refused to leave the house claiming a constructive trust of the entire beneficial …show more content…
Besides, using statute to address every possible scenario may be unrealistic and unfair to those who do not fall within the realm of what the legislation covers. However, having coherent principles should be favoured at the expense of defendants not knowing their fate. After all, isn’t the point of justice for persons to know the consequences of their actions before they are committed? Like many other areas of law, constructive trust should be governed by both statute and judge-made law. While statute will cover the most prevalent issues, case law can fill in the gaps where statute cannot provide the

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