Got a tricky question? Receive an answer from students like you! Try us!

Resulting and Constructive Trust in Equity & Trust - Case Study Example

Only on StudentShare
Author : umedhurst

Summary

Lynn Jones and Mike Smith are an unmarried couple. They met in 1990 and decided to set up home together. In the same year, Mike purchased a house in his sole name, the purchase money coming from his divorce settlement and by way of a mortgage. At Mike's invitation, Lynn Moved into the house shortly after completion of the purchase.

Extract of sample
Resulting and Constructive Trust in Equity & Trust

She also, throughout the relationship, looked after the children and performed all the usual domestic duties around the home.
In Sept 2003, Lynn formed a liaison with another man and moved out of the house. She brought an action against Mike claiming that she was entitled to a half-share in the house by reason of her contributions to the house hold expenses during the period the parties lived together. According to the evidence at the trial in the High Court, both Lynn and Mike had assumed that the house was jointly owned although the matter was never actually discussed between them. It is also not in dispute that, if it had not been for the fact that Lynn was working part-time, Mike would not have been able to meet the mortgage payments out of his own salary.
1) Applying Lloyds Bank plc v Rosset (1994) 1 A.C. 107, (HL), in the absence of any finding of an agreement, arrangement or understanding between the parties to share beneficially, Lynn's indirect contributions to household expenses were insufficient to found a beneficial interest in the house. In particular, the court refused to follow the decision of Mr. Nicholas Mostyn Q.C. (sitting as a deputy High judge) in Le v Le Foe (2002) 2 F.L.R. ...
Download paper

Related Essays

Equity and Trust Law Essay
In order to understand the term trust well, one has to understand some technical terms such as resulting trusts, express trust, fiduciary, fixed trust, beneficiary, charitable trust, personal remedies and constructive trusts. Trust is always a unique creation of the common law. When a trustee is transferring property to a beneficiary he may be bound by numerous duties which may be either imposed by general principles of equity, by statute or by the trust instrument and there are always serious impacts to the trustee who may either neglect his duties or breach the terms contained in the…
3 pages (753 words)
equity and trust law
However, as Pettit3 argues, equity operates on the conscience of the owner of legal interest and so in the case of a trust; the conscience of the legal owner of the estate is required to carry out that purpose for which it was intended, or which the law obliges him or her to do. This is because English law is based on formalities which must be fulfilled in order for a transfer of trust to be considered as complete. These formalities are achieved in different processes, but all include some form of official government document which the donor of an estate must sign as an indication of the…
10 pages (2510 words)
Equity and Trust Law
Trust law however applies to every situation in which a person places trust or confidence in another person to manage daily affairs and activities. Equity governs the trust law in such a sense and applies to a wide range of situations and cases such as family relationships, charities, pensioners etc. The courts deal with the formalities of property law and secret trusts, although trust law applies to all such situations, and understanding of trust law applies to express trusts, fixed trusts, discretionary trusts, resulting trusts, constructive trusts, charitable trusts, proprietary and…
9 pages (2259 words)
Constructive Trust Law
The simple definition found in a freshman's law book is a person, whom we shall call the donor, who has complete confidence in another person, (a friend, a relative, or a lawyer), who shall be called the trustee, and gives this person the right to administer his affairs (be it a house, bonds, jewels, an estate, and so on). This is what one usually understands by the word trust. Judge Cardozo gave the following definition: "when a property has been acquired in such circumstances that the holder of the legal title may not in good conscience retain the beneficial interest, equity converts him…
8 pages (2008 words)