Land Law

Ninth edition

by Mark Davys

Suggested Answer to Exercise 14.3 (Part 2)


Planning Your Answer

Issues

Does Lena have a proprietary interest in the house (that is, one that is enforceable against Jerome’s mother)?

If so, what is the extent of her interest?

Rules

Resulting trust
  1. Requires direct contribution to purchase price or mortgage liability;
  2. Unusual in ‘family’ cases (see Stack v Dowden [2007] 2 AC 432; Jones v Kernott [2012] 1 AC776).
See Land Law, Section 14.2
Common intention constructive trust
  1. Establishing a beneficial interest: Lloyds Bank v Rosset [1991] 1 AC 107​ See Land Law, Section 14.3.1.​
    • Express common intention and detrimental reliance;
    • Inferred common intention (and detrimental reliance).​
  2. Determining the extent of the beneficial interest​
    • Express agreement;
    • Resulting trust principles;
    • Infering/imputing the intentions of the parties (Jones v Kernott; see also Oxley v Hinscock [2005] Fam 211; Midland Bank v Cooke [1995] 2 All ER 562)
See Land Law, Section 14.3.2.
Proprietary estoppel
  1. Raising the expectation, See Land Law, Section 14.4.1.
  2. Detrimental reliance, See Land Law, Section 14.4.2.
  3. statisfaying the equity
    • Expectation, or
    • Minimum necessary: Gillett v Holt [2001] Ch 210. See Land Law, Section 14.4.3.
Answer Plan
  1. Introduction
  2. Resulting trust
  3. Common intention constructive trust
    • Has such a trust arisen on the facts?
    • If so, what is the size of Lena’s beneficial share?
  4. Proprietary estoppel
    • Has an estoppel arisen?
    • If so, what remedy is required to satisfy the estoppel?
  5. Make sure that you have stated your conclusions and that these conclusions follow logically from your reasoning.

Before you go to the next page, prepare a more detailed answer plan, including references to relevant cases and statutes.



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