Is Quistclose a resulting trust?

This note explains that a Quistclose trust is a form of resulting trust that may arise when funds are transferred for specific and exclusive purposes, as explained in Twinsectra Ltd v Yardley and others [2002] UKHL 12.

What is the difference between resulting and constructive trust?

A resulting trust is based upon the presumed intention that arises where a person provides funds for the purchase of property. A constructive trust is founded upon a common intention that can either be expressed or inferred but cannot be based upon an intention that the parties never in fact had.

What is a presumed resulting trust?

Presumed resulting trust Presumed resulting trusts arise either from voluntary transfer of the legal estate or by contribution to the purchase price. In these situations it is presumed that the person did not intend to make a gift of the property or money unless there is a clear intention that they did so intend.

What type of trust is Quistclose?

The Quistclose trust is a form of express trust, which is used to describe the transfer of assets for a specific primary purpose, the transfer however is impressed with a secondary trust should the primary purpose fail.

What is an express trust in equity?

An express trust is a trust created “in express terms, and usually in writing, as distinguished from one inferred by the law from the conduct or dealings of the parties.” Property is transferred by a person (called a trustor, settlor, or grantor) to a transferee (called the trustee), who holds the property for the …

How does a resulting trust work?

An arrangement whereby one person holds property for the benefit of another, which is implied by a court in certain cases where a person transfers property to another and gives him or her legal title to it but does not intend him or her to have an equitable or beneficial interest in the property.

How do you prove a common intention constructive trust?

Hence, the key elements for this doctrine are that (i) there must be a common intention that both parties should have a beneficial interest in the property; and (ii) the claimant has acted to his detriment in the belief that by so acting he was acquiring a beneficial interest in the property.

What are the three requirements of a constructive trust?

The following must be shown for the court to impose a constructive trust: “(1) the existence of a res (property or some interest in property)’ (2) the right of a complaining party to that res; and (3) some wrongful acquisition or detention of the res by another party who is not entitled to it.” Communist Party v …

Can trusts be superimposed on a debtor creditor relationship?

In some cases, the court will superimpose a trust relationship on top of a contractual or debt relationship. A Quistclose trust will not be possible where it conflicts with a statute governing the parties relationship (LSB v Gillepsie-Jones).