Chapter 5 Self-test questions

An express written declaration of trust is __________ as to the existence of the trust.

If a house is purchased in the joint names of a cohabiting couple, where the woman contributed 70% and the man 30% of the deposit and both are liable for the mortgage, the two legal owners will be presumed to hold the property on resulting trust for the woman as to 70% and the man as to 30%.

True

False

Which of the following best expresses the position in relation to the common intention constructive trust?

A court can impute a common intention to the parties when considering their intentions as to the size of the beneficial share each is to acquire, but it cannot impute a common intention when considering their intentions as to whether their beneficial shares should differ from the position at law.

A court can impute a common intention to the parties when considering their intentions as to the size of the beneficial share each is to acquire, and also when considering their intentions as to whether their beneficial shares should differ from the position at law.

A court can never impute a common intention to the parties, whether considering their intentions as to the size of the beneficial share each is to acquire or otherwise, but a court may infer such a common intention from the evidence.

If there is no express evidence as to the parties' common intentions, a court must determine the parties' beneficial shares, if any, on the basis of the parties' financial contributions to the purchase of the property.

When a common intention constructive trust arises, and the court cannot find an express or inferred common intention as to the size of the parties' beneficial shares, it may then impute such an intention. Which of the following statements best describes that process of imputation?

A court will impute a common intention by considering what the parties would have agreed, if they had thought carefully when acquiring the house as to what size share each should have.

A court will impute a common intention by considering the outcome that would be fair, given the parties' whole course of dealing in relation to the property.

A court will impute a common intention by considering the outcome that would be fair, given the parties' current circumstances and needs.

A court will impute a common intention by considering what result would have been reached if the court were exercising its statutory power to reallocate property on a divorce or on the dissolution of a civil partnership.

Of these four factors, which two are most likely to be relevant to determining the size of B's beneficial share of a property registered in A's sole name?
(i) The extent of B's financial contribution to the acquisition of the property.
(ii) The fact that A and B intended the property to be used as an investment.
(iii) The fact that B has given up career opportunities to live with A.
(iv)The fact that A and B kept their financial affairs separate.

(i) and (ii)

(i) and (iv)

(ii) and (iii)

(iii) and (iv).

Which, if any, of the following four statements about the 'doctrine of anticipation' is correct?
(i) The doctrine operates to give B an equitable interest in A's property.
(ii) The doctrine always gives rise to a trust.
(iii) The doctrine can apply only where there is a binding contract between A and B.
(iv) The doctrine applies whenever A, an owner of land, enters into a specifically enforceable contract with B.

(i) only

(i) and (ii)

(i) and (iii)

(i) and (iv).

Which, if any, of the following four statements about proprietary estoppel is correct?
(i) Its effect is always to stop A denying the truth of a representation that B has an interest in A's land.
(ii) It can be used by B as a means of acquiring an equitable interest in A's land.
(iii) The doctrine will apply whenever A behaves in an unconscionable way.
(iv) It cannot be used in a commercial context.

(i) and (ii)

(ii) and (iii)

(ii) and (iv)

(ii) only

Consider a case where B has succeeded in making out a proprietary estoppel claim based on a promise of A. Which, if any, of the following four statements about the courts' approach to 'satisfying a proprietary estoppel equity' arising in favour of B is correct?
(i) B's right will not exceed B's expectation.
(ii) The extent of B's detriment will be an important factor.
(iii) The overriding aim is to protect B's expectation by enforcing A's promise.
(iv) Counter-vailing benefits received by B will be taken into account.

(i) , (ii), (iii) and (iv)

(i), (ii) and (iii)

(i), (ii) and (iv)

(i) and (ii)

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