chapter  10
18 Pages

RESULTING AND CONSTRUCTIVE TRUSTS

Key Law The liability of the local authority to repay the loan from Westdeutsche under the ultra vires agreement was subject only to a personal liability to repay because the bank had intended the local authority to become absolute owners of the fund. Their liability to repay lay in common law and not in equity, therefore since the claim lay in common law only simple interest could be claimed. Compound interest is only payable under equity.