Yap Chun Siang 065455

TASK - CONSTRUCTIVE TRUST (28 MAY)

Question 1

First, constructive trust may arise when the is a breach of fiduciary duty. In the case of
Keech v Sandford, Sandford held the right to the renewal of the tenancy because Keech is
an infant and cannot enter into a tenancy agreement. Thus, any profit Sandford get shall be
held on constructive trust. Second, mistake. In the case of Manhattan v Israel-British Bank, a
fund was wrongly transferred to the bank, and the bank went into insolvency, the wrongly
transferred fund shall be held on constructive trust.

Question 2

Proprietary claims is the right of beneficiary in specifically identifiable property. However, the
personal claims are an in personam right constructive trustee to make the trustee personally
liable for any loss suffered.

Question 3

A trust arises in a mutual will when 2 persons agree to make a will together, and each of the
party cannot revoke or amend the will without any mutual consent. The constructive trust in
term of mutual will will arise when the 1st party died and another party want to amend his will,
thus the property of the 1st party will be held on constructive trust.