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Operation of law Trusts (Resulting Trusts (Contributions to Property, not…

- - - - Presumption of Advancement: Rare, but possible.Where a husband advances the position of his wife or parent advances the position of their child.
      - Gift: See Property Law Act 27
  - - - Can fail for several reasons: illegality, lack of certainty, not in writing, etc.
      - Quistclose
- - - - Barnes v Addy. Two limb test:
        
        Knowing Assistance: See Consul Developments Pty Ltd v DPC Estates Pty Ltd (1975)
        
        Knowing Receipt: where the receiver knows (or ought to have known) that they are received property in breach of trust.
    - - Lysaght v Edwards: When a contract for the transfer of property is entered, a constructive trust is formed. Buyer = trust. Vendor = Lien.
        
        Qualification 1: the interest must be one that equity will protect
        
        Qualification 2: Only applies where the vendor is subject to an unconditional obligation to transfer property.
  - - - Where parties purchase property without a formal agreement, but with a common intention. A constructive trust can be used by the party who has relied upon the agreement to his/her detriment. See Bannister v Bannister.
    - - A constructive trust can be declared where it is unconscionable for a party to assert title or deny beneficial interest. See Muschinki v Dodds (1985) - de facto couple living together, husband did not pay his share and tried to deny wife's interest.