What are the three requirements of a constructive trust?

The following must be shown for the court to impose a constructive trust: “(1) the existence of a res (property or some interest in property)’ (2) the right of a complaining party to that res; and (3) some wrongful acquisition or detention of the res by another party who is not entitled to it.” Communist Party v …

How does a constructive trust work?

A constructive trust is not an actual trust by the traditional definition. It is a legal fiction that is used as a remedy for unjust enrichment. Hence, there is no trustee, but the constructive trust orders the person who would otherwise be unjustly enriched to transfer the property to the intended party.

What are the four elements of constructive trust?

The elements of a constructive trust are: (1) a promise; (2) transfer of the property and reliance thereon; (3) a confidential relationship; and (4) unjust enrichment.

When would you use a constructive trust?

A constructive trust is created to remedy (or make up for) a situation where there is “unjust enrichment.” If someone has possession of property (money, real estate, or other assets) that they should not have because they obtained it unfairly through fraud or breach of a fiduciary duty, this is unjust enrichment.

What is the remedy for a constructive trust?

A constructive trust is an equitable remedy imposed by a court to benefit a party that has been wrongfully deprived of its rights due to either a person obtaining or holding a legal property right which they should not possess due to unjust enrichment or interference, or due to a breach of fiduciary duty, which is …

How do you establish a constructive trust?

Constructive trust

A holds funds that he knows have been paid to him by mistake.
A holds an asset that he has obtained by means of fraud.
A and another person (B) share a common intention that B should have a beneficial interest in an asset, and B has acted to his detriment on the basis of that intention.

What is the effect of constructive trust?

The court employs the constructive trust as a remedial device to compel the defendant to convey title to the property to the plaintiff. The Courts treat the defendant as if he or she had been an express trustee from the date of the unlawful holding of the property in question.

What is the difference between a resulting trust and a constructive trust?

A resulting trust is based upon the presumed intention that arises where a person provides funds for the purchase of property. A constructive trust is founded upon a common intention that can either be expressed or inferred but cannot be based upon an intention that the parties never in fact had.

What is the effect of a constructive trust?

A constructive trust is an equitable remedy that may be granted to address a breach of, or to give effect to, an equitable doctrine or right. The order gives rise to an interest in existing in specie property or other rights.

How is a constructive trust formed?