ABSTRACT
This chapter considers particular situations in which constructive trusts have arisen although it is suggested that the following sub-categories of constructive trust are necessarily to be read in the light of the foregoing general principles. It also considers the counter-argument based on the voidability of fraudulent misrepresentations. Lord Templeman held that the defendant's liability does not stop with holding the bribe and any property bought with it on constructive trust, but also includes a liability to make good any diminution in the value of those investments from the constructive trustee's own pocket. In English law, a constructive trust arises by operation of law. The institutional constructive trust arises by comparison with the discretionary constructive trust used in the USA. It is vital to distinguish between personal and proprietary rights. The chapter explores the distinction which will be familiar to all students of property law.
