A trust is created where a trustee holds property on behalf of a beneficiary.

Advertisement

 

The trustee holds the legal title to such property subject to the interest of the beneficiary in such property.

 

A promisee will be regarded as a trustee of a promise if it was the clear intention of that party at the time of the contract was entered into.  Unless an intention to create a trust is clearly to be collected from the language used and the circumstances of the case, the courts will be reluctant to infer such a trust exists.

 

Whether a trust is created will depend on a true construction of the terms of the contract and the intention of the parties.  In deriving intention from the language that the parties have employed the courts may look to the nature of the transaction and the circumstances, including the commercial necessity of the arrangement.

 

The intention required to create a trust need not be held by both parties, it is sufficient if the promisee alone holds the intention.

Advertisement
The following two tabs change content below.
We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]
13 Comments

Leave a reply

BMS.co.in is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp
or

Log in with your credentials

or    

Forgot your details?

or

Create Account