ABSTRACT

A constructive trust arises from circumstances in which equity considers it unconscionable for the holder of property to deny the claimant an interest in the same. It is difficult to state exactly when the defendant’s conduct may give rise to a constructive trust. In English law, the boundaries surrounding a constructive trust have not been precisely drawn, for the circumstances that may give rise to such a trust are inexhaustible. In the Carl Zeiss Stiftung case, Edmund-Davies LJ declared the reasons why the boundaries of a constructive trust have been deliberately left vague by the courts and stated that the basis for imposing a constructive trust is to satisfy the demands of justice and good conscience.