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Resulting Trusts
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Presumption
- Where two people contribute to purchase price
- Can be rebutted
- Only applies to financial contribution
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Establishing interest
- Gissing v Gissing [1971]
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Must have made some direct contribution to purchase price
- Deposit
- Legal costs
- Can be borrowed money
- Can include paying bills if this allows other person to pay mortgage
- Household work does not count
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Assessing size of interest
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General rule
- Proportionate share
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Midland Bank v Cooke
- Direct contribution needed to establish interest
- Courts then consider other factors in determining share
- Can consider non-financial contributions
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Proprietary Estoppel
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Taylor's Fashions LA v Liverpool Victoria Trustees Co Ltd [1982]
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Non-legal owner has belief that will acquire interest in land
- Not necessarily agreement
- Belief based on conduct of legal owner
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Acts to his detriment in reliance on this belief
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Must be done because of belief
- Coombes v Smith [1986]
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Burden is on legal owner to show not in reliance
- Greasley v Cooke [1980]
- eg improvements to ex-lover's house
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eg giving up job
- Jones v Jones [1977]
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eg looking after ill family member
- Greasley v Cook [1980]
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eg working for low wages
- Wayling v Jones
- eg contribution to purchase price
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Remedies
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Wider range
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transfer ownership
- Pascoe v Turner (1979)
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repay money spent
- Dodsworth v Dodsworth (1973)
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live in property for life
- Greasley v Cooke
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awarded value of what he had lost - right to live in property for life
- Baker v Baker & Baker [1993]
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Proportionality
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Fulfill claimant's expectations unless disproportionate to detriment
- Jennings v Rice [2003]
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Constructive Trusts
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Lloyd's Bank v Rosset
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Situation 1
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Must be agreement, arrangement or understanding that equitable interest to be shared
- Specific statement about ownership must have been made
- Does not matter what motivation was
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Non-legal owner acts on this agreement to their detriment
- Or alters position
- Causal test
- Non-legal owner would not have acted if the agreement did not exist
- Grant v Edwards [1986]
- Wielding a 14lb sledge hammer
- Objective test
- Must be motivated by agreement
- Wayling v Jones
- Would have carried on working even if promise retracted
- eg paying for improvements
- eg paying household bills
- eg working unpaid
- eg demolishing greenhouse
- Contractual analysis
- Should have made agreement on basis that non-legal owner would take certain action
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Situation 2
- Court infers common intention from conduct of parties
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To do so, need to establish that non-legal owner has made direct contribution to purchase price
- Lloyds Bank v Rosset
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Shift in law towards taking wider view of contributions
- Stack v Dowden
- eg contributions to bills to free up finances
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Quantifying shares
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What the court considers fair
- Oxley v Hiscock [2004]
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OR survey course of dealings to determine what was intended
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Stack v Dowden
- Joint names case
- Starting point is equal shares
- Kept separate accounts