ABSTRACT
The sub-section is wide enough to include the ‘proceeds’ of the property given him by P. Thus, if our householder had given the builder a cheque for the materials, then he would be under an obligation to use the proceeds of that cheque, once cashed, in the particular way specified. Similarly, if P gives D a painting to sell for him, D becomes the legal owner of the painting, but is under an obligation to sell it and retain the proceeds, that is the money, to return to P. Potentially, s 5(3) places a heavy obligation on D, so its parameters are limited by certain requirements: the obligation must be a legal one and not merely a social or moral one; D must be aware that he is under an obligation to deal with the property (or its proceeds) in a particular way; and he must receive the property from (or on account of) the person to whom the obligation is owed.
