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The following conditions should generally be satisfied before a constructive trust based on wrongful conduct will be imposed: (1) the defendant must have been under an equitable obligation in relation to the activities giving rise to the assets in his hands; (2) the assets in the hands of the defendant must be shown to ...
To successfully make a constructive trust claim, several requirements must generally be met, including: The establishment of a trust relationship or other legal ground for a claim. Evidence of unjust enrichment or some other wrongful act. The identification of specific property or assets that are subject to the claim.
An agent who makes a secret profit in breach of fiduciary duty holds that secret profit on constructive trust for its principal (Keech v Sandford [1726]). This gives the principal a proprietary interest in the profit in question.
Constructive trusts are analyzed by the author as either resulting trusts, in which the equitable interest springs back or results to a settlor or his representatives, or non-resulting trusts; a resulting trust will be presumed in favour of a person who is proved to have paid the purchase-money for real property in the ...
Because a constructive trust is an equitable device, the defendant can raise all of the available equitable defenses against it, including unclean hands, laches, detrimental reliance, and undue hardship.