Chapter 10 Scenario Questions

Terry and Tina are cohabiting. They are both named as the registered proprietors of the house, but Tina contributed 80 per cent of the purchase price and pays all of the mortgage payments. Terry and Tina agreed that if they separate amicably then they should get a 50:50 share of the house, but if they separated due to unfaithfulness, the party at fault would get 10 per cent and the other party would get 90 per cent. Tina cheats on Terry and they decide to split up. She argues that as she contributed 80 per cent of the purchase price and pays all of the mortgage payments, she should get an 80 per cent share.
What would the courts determine as to the apportionment of the beneficial interest?

If the couple had split amicably then Tina would get 50 per cent and Terry would get 50 per cent. As Tina was unfaithful, however, Tina gets only 10 per cent and Terry gets 90 per cent.

It is likely that Tina would be entitled to 80 per cent, subject to other relevant factors.

Whatever the circumstances of the split, they each get 50 per cent.

Whatever the circumstances of the split, Tina gets 80 per cent and Terry gets 20 per cent.

A house was cohabited by Saffron and Saoirse. The property was registered in the sole name of Saffron and the purchase monies and mortgage payments came from Saffron's salary. The couple had a common intention that they held the beneficial interest in equal proportions. Saffron and Saoirse split up and the property was sold for £500,000. Saoirse claimed that 50 per cent of the proceeds of the sale were held on trust for her by Saffron.
What percentage of the proceeds of sale is Saoirse entitled to?

Saoirse is entitled to 50 per cent of the proceeds because the parties had a common intention to share equally.

Saoirse is entitled to 0 per cent of the proceeds because Equity follows the Law and Saffron is the legal titleholder.

Saoirse is entitled to 0 per cent of the proceeds because she did not rely to her detriment on the common intention.

Saoirse is entitled to 50 per cent of the proceeds because the parties had a common intention to share equally and they cohabited the house.

Anton and Benedict are both bidding in an auction for land. Anton suggests that Benedict does not bid so that Anton is more likely to win at a cheaper price, and then Anton will divide the land between himself and Benedict. Benedict agrees, but bids anyway. Anton wins and then denies that Benedict has any interest in the land.
What is the position of Benedict?

Anton holds the land on a joint venture constructive trust as they had an express understanding that Benedict would acquire an interest in the land.

Anton holds the land on constructive trust as it would be unconscionable to deny Benedict's interest in the land.

Benedict does not have an interest in the land because he did not rely on the arrangement by omitting to bid on the land.

Benedict does not have an interest in the land because the agreement was not in writing.

Larry owns a restaurant. His daughter, Martine, has worked in the restaurant without payment for twenty years. Larry is known for not being the most honest person. When Martine was younger, Larry would gesture to the restaurant and say, 'All this will be yours one day.' Larry died intestate.
What rights does Martine have in relation to the restaurant?

Martine has a mere equity entitling her to equitable relief as she has relied on the representations of Larry that she will inherit the restaurant.

Martine does not have a mere equity as Larry did not make any concrete assertions or representations declaring that Martine would inherit the restaurant.

Martine does not have a mere equity as it was not reasonable for her to believe the assertions of her father as he was known not to be an honest man.

Martine does not have a mere equity as working in the restaurant did not qualify as sufficiently substantial detriment.

Fae owns a large house. Her friend, Geoffrey, has recently been evicted and needs somewhere to stay. Fae tells Geoffrey to stay at the house as long as he needs to get back on his feet. Geoffrey stays for six months and whilst there does some renovations and improvements to the home as a thank you to Fae. Fae and Geoffrey have an argument and Fae asks Geoffrey to leave.
Geoffrey claims that Fae holds part of the house on trust for him. Which of the following is true?

Geoffrey has a mere equity because he acted to his detriment in reliance on the fact that he was entitled to stay in Fae's home and would receive an interest in the property.

Geoffrey has an interest in the house by virtue of a common intention constructive trust as he acted to his detriment.

Geoffrey is entitled to the value of the renovations because Fae has been unjustly enriched at his expense.

Geoffrey has no claim or interest in relation to the house.

Quiz Content