4. Constructive trusts
Titles in the Core Text series take the reader straight to the heart of the subject, providing focused, concise, and reliable guides for students at all levels. This chapter focuses on constructive trusts, which are trusts that arise by operation of law. It identifies and discusses three broad categories of constructive trust: firstly, those in which the law anticipates the result of legal title passing at law, with the result that the legal owner is regarded as holding his title on trust for the transferee until the transfer of the legal title is effective; secondly, the ‘trust’ under which a non-bona fide third party recipient of property transferred in breach of trust holds the title to the property he receives; and, finally, those in which individuals acquire for the first time an interest in another’s property because of their past dealings or relationship with the legal owner. Each of these is discussed in turn.