Chapter 9 Scenario Questions

Maria steals a bag of coins from Naomi.
According to Lord Browne-Wilkinson in Westdeutsche, what claim does Naomi have?

Maria holds the coins on constructive trust for Naomi because of her unconscionable conduct.

Maria holds the coins on constructive trust for Naomi because she has been unjustly enriched at Naomi's expense.

Maria acquires the equitable interest in the coins but Naomi retains the legal title because she did not consent to the transfer.

Naomi has a personal claim against Maria for the coins.

Pria declares a trust for her children for the purpose of avoiding tax. It turns out that she misunderstood the law and so a significant amount of tax was owed.
Can Pria rescind the settlement?

Pria can rescind the settlement because it is sufficient that she had an incorrect conscious belief about the tax liability.

Pria might be able to rescind the settlement because a mistake as to tax consequences might be sufficiently serious.

Pria cannot rescind the settlement because she made no mistake.

Pria possibly cannot rescind the settlement because it involves artificial tax avoidance gone wrong.

Paul and Paula, husband and wife, made wills in each other's favour, with gifts to all three of their children after the survivor's death. Paula died first, and Paul changed his will to leave the property to one of the three children.
What are the rights of the three children?

The property is held on constructive trust for all three children.

Paul cannot change his will as he is not entitled to the property during the remainder of his lifetime.

The other two children can specifically enforce the agreement.

It is unfortunate for the other two children, but they are no longer entitled under the will.

Filip is a trustee of property for Gerda. Helen pays Filip £1,000 to invest the trust property in one of her business ventures, which is doomed to fail.
What is Gerda's position in relation to the £1,000?

As trustee, Filip is entitled to manage the trust property as he wishes. The receipt of £1,000 from Helen makes no difference to that.

The money received from Helen constitutes a bribe. Gerda has a personal right that Filip accounts for the value of the bribe.

Filip holds the £1,000 bribe on constructive trust for Gerda.

Filip did not act in breach of any fiduciary duties and so Gerda has no right to the £1,000.

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