Chapter 15 Multiple choice questions

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A constructive trust may arise in many different situations. Which of the following would not be a constructive trust?

The conscience of the recipient is bound in such a way as to justify equity in imposing a trust on him

A person holds property in circumstances which in equity and good conscience should be held or enjoyed by another

A remedial institution which equity imposes regardless of actual or presumed intention

Two parties have contributed financially to the purchase of land and hold that land in proportion to those contributions

. Fiduciaries have very strict duties. Which of the following are they actually allowed to do?

Purchase the trust property

Make a profit for themselves

Purchase trust property with the consent of the beneficiaries

Use knowledge acquired from their fiduciary position

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What great practical advantage did the decision in Attorney General for Hong Kong v Reid 1994 1 AC 324 have for the government of Hong Kong?

Bribery was condemned as evil

Property bought with the bribes belonged to them

The bribes were held on constructive trust

Reid was personally liable as a fiduciary

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Which of the following persons is not a fiduciary?

A foreman in a factory

An army sergeant

The Director of Public Prosecutions

The solicitor to the trustees

. What is a trustee de son tort?

A person who acts as the agent of the trustees

A person who acts as a trustee, although they were not appointed as a trustee

A person who receives trust property

A person who knowingly assists in a fraudulent and dishonest design by the trustees

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According to Twinsectra v Yardley [2002] 2 AC 164, what is the test for dishonesty in a dishonest assistance constructive trust?

The defendant believed that they were acting dishonestly

The defendant acted dishonestly by the ordinary standards of reasonable and honest people

The defendant acted dishonestly by the ordinary standards of reasonable and honest people and believed that they were acting dishonestly

The trustee was dishonest

. What makes the defendant liable for knowing receipt of trust property?

The defendant knew enough to make it unconscionable for them to retain the property

The trustee knew that there was a breach of trust

The defendant should have known that they were receiving trust property

The defendant was dishonest

. When does an institutional constructive trust come into existence?

From the date of the court order

From the date of the conduct or circumstances that give rise to the constructive trust

From the date that the claimant realizes that they have a claim against the defendant

From the date when a third party is affected

. When does a remedial constructive trust come into existence?

From the date of the court order

From the date of the conduct or circumstances that give rise to the constructive trust

From the date that the claimant realizes that they have a claim against the defendant

From the date when a third party is affected

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The Supreme Court decided, in Ivey v Genting Casinos [2017] UKSC 67, that the test for dishonesty in a dishonest assistance constructive trust was that:

The defendant believed that they were acting dishonestly

The defendant acted dishonestly by the ordinary standards of reasonable and honest people and believed that they were acting dishonestly

The defendant's mental state would be regarded as dishonest by ordinary standards.

The defendant had knowledge of circumstances, that would indicate the facts to an honest and reasonable man.

Chapter 15 Multiple choice questions

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