ABSTRACT

OVERVIEW Constructive trusts arise by operation of law. In general terms, a proprietary constructive trust will be imposed on a person who has knowledge of some unconscionable factor in relation to her dealing with property . 1 All constructive trusts can be understood as arising on the basis of this central principle, even though there are many different subspecies of constructive trust. It is important that the trustee has knowledge of the unconscionability of her actions or omissions in relation to that property before a constructive trust will be imposed. For the imposition of a proprietary constructive trust, the legal owner of property will be liable if she has knowledge of some factor which affects the conscionability of asserting benefi cial title to that property . 2 Constructive trusts will also arise in a number of contexts in which equitable doctrines such as ‘equity shall not be used as an engine of fraud’ 3 or ‘equity looks upon as done that which ought to have been done’ 4 operate so as to prevent rights in property being acquired on the basis of unconscionable conduct. Among the various types of constructive trust, the following categories are the most signifi cant .