THE CONSTRUCTIVE TRUST AS A REMEDY FOR MISTAKE, FRAUD, DURESS AND UNDUE

Abstract

The constructive trust is gradually emerging in Anglo-Australian law as a very effective remedy for the specific restitution of property acquired by fraudulent, unconscionable or inequitable conduct. It is therefore appropriate to consider in more detail the general principles which are applied by the courts to determine whether a person holding title to property can be charged as a constructive trustee of the property because the property was acquired by fraudulent, unconscionable or inequitable conduct. It is also necessary to examine particular applications of these general principles. In this article the use of the constructive trust as a remedial device for restoring property acquired by mistake, fraud, duress and undue influence is considered as a specific category in which these general principles are applied as a justification for charging the holder of title to property as a constructive trustee of the property.