Lloyds Bank v Rosset
1990 · [1991] 1 AC 107
Posted By lanbuk.com
- Facts
- A house was bought in the husband's name. The wife supervised builders and did some decorating. The bank sought possession under a charge.
- Issue
- Did the wife have a beneficial interest by ?
- Held
- No. The House of Lords held that she needed an express agreement to share plus detrimental reliance, or direct contributions to the price. Her work was not enough.
- Principle
- A common intention constructive trust needs an agreement to share and detrimental reliance.
- Why it matters
- It set the traditional test, since relaxed in England by Stack v Dowden and Jones v Kernott.
Words and Latin in this note
- Constructive trust
- A trust imposed by law, whatever the parties intended, because it would be unconscionable for the legal owner to keep the property for himself. Open the note.
- Trust
- An arrangement in which a trustee holds property at law but must use it for beneficiaries, or for a charitable purpose. The beneficiaries have the equitable interest. Open the note.
For study only. By lanbuk.com. Always check current sources and consult a qualified professional.