Try the multiple choice questions below to test your knowledge of this chapter.
Get Started!Correct. Feedback: B is the correct answer. In the United States and Canada, as its name implies the remedial constructive trust is a remedy awarded by the court against a person who has been unjustly enriched.
Incorrect. Feedback: B is the correct answer. In the United States and Canada, as its name implies the remedial constructive trust is a remedy awarded by the court against a person who has been unjustly enriched.
Correct. Feedback: C is the correct answer. There are many different fiduciary relationships, e.g. trustee and beneficiary; solicitor and client; director and company. In each of these, one party acts for the other in a relationship of trust and confidence.
Incorrect. Feedback: C is the correct answer. There are many different fiduciary relationships, e.g. trustee and beneficiary; solicitor and client; director and company. In each of these, one party acts for the other in a relationship of trust and confidence.
Correct. Feedback: B is the correct answer. Keech v Sandford is the classic case where an unauthorised profit made by a trustee was held on constructive trust for the beneficiary.
Incorrect. Feedback: B is the correct answer. Keech v Sandford is the classic case where an unauthorised profit made by a trustee was held on constructive trust for the beneficiary.
Correct. Feedback: A is the correct answer. There is no fiduciary relationship between the settlor and the beneficiary.
Incorrect. Feedback: A is the correct answer. There is no fiduciary relationship between the settlor and the beneficiary.
Correct. Feedback: C is the correct answer. The proprietary remedy enables the claimant to identify and recover his property or substituted property from the defendant.
Incorrect. Feedback: C is the correct answer. The proprietary remedy enables the claimant to identify and recover his property or substituted property from the defendant.
Correct. Feedback: A is the correct answer. Mr Tan, the managing director of Borneo Leisure Travel, dishonestly assisted the travel company in a breach of trust and was liable as a third party.
Incorrect. Feedback: A is the correct answer. Mr Tan, the managing director of Borneo Leisure Travel, dishonestly assisted the travel company in a breach of trust and was liable as a third party.
Correct. Feedback: B is the correct answer. The House of Lords was concerned with the issue of dishonesty in Twinsectra Ltd v Yardley.
Incorrect. Feedback: B is the correct answer. The House of Lords was concerned with the issue of dishonesty in Twinsectra Ltd v Yardley.
Correct. Feedback: A is the correct answer. Although in BCCI v Akindele the Court of Appeal held that Chief Akindele had not been dishonest.
Incorrect. Feedback: A is the correct answer. Although in BCCI v Akindele the Court of Appeal held that Chief Akindele had not been dishonest.
Correct. Feedback: C is the correct answer. In Ottaway v Norman an oral secret trust of land was upheld indicating that such a fully secret trust is a constructive trust. If it had been an express trust, it would have been unenforceable under s 53(1)(b) Law of Property Act 1925 - but constructive trusts are exempt from s 53(1) by s 53(2) of the Act.
Incorrect. Feedback: C is the correct answer. In Ottaway v Norman an oral secret trust of land was upheld indicating that such a fully secret trust is a constructive trust. If it had been an express trust, it would have been unenforceable under s 53(1)(b) Law of Property Act 1925 - but constructive trusts are exempt from s 53(1) by s 53(2) of the Act.
Correct. Feedback: B is the correct answer. An institutional constructive trust comes into existence by operation of the law in certain established situations, e.g. unauthorised profit made by a fiduciary.
Incorrect. Feedback: B is the correct answer. An institutional constructive trust comes into existence by operation of the law in certain established situations, e.g. unauthorised profit made by a fiduciary.