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United Kingdom Leading Case resulting trustsinstitutional vs remedialfailure of basis

Westdeutsche Landesbank Girozentrale v Islington London Borough Council

[1996] AC 669
JurisdictionUnited Kingdom
CourtUK House of Lords
Year1996
StatusBinding authority

Summary

Resulting trusts arise only in two defined situations and a constructive trust requires the recipient's conscience to be affected by knowledge of the relevant facts.

Key Principle

Lord Browne-Wilkinson held that a resulting trust arises in two situations: (1) voluntary conveyance where the transferee is not intended to take beneficially, and (2) where a trust fails; property cannot be held on constructive trust unless the conscience of the recipient is affected.

Area of Law

trusts

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