Re Sharpe
1979 · [1980] 1 WLR 219
Posted By lanbuk.com
- Facts
- An aunt provided most of the price of a house bought in her nephew's name. He went bankrupt.
- Issue
- Did she have a interest?
- Held
- No. Browne-Wilkinson J held the money was a loan. But she had a right to stay in the house that bound the trustee in bankruptcy until the loan was repaid.
- Principle
- A presumption of resulting trust is rebutted by evidence that the money was lent.
- Why it matters
- It shows the effect of a loan.
Words and Latin in this note
- Resulting trust
- A trust under which the beneficial interest goes back to the person who provided the property, because he is presumed not to have meant a gift, or because an express trust did not use up the whole interest. 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.