Lloyds Bank v Rosset [1991] 1 AC 107

House of Lords

Basic Facts: C sought a beneficial interest in the matrimonial home, which was solely owned by H. C had contributed to renovations but not to the purchase price.

Issue for the Court: What are the two forms of common intention constructive trusts?

Held: The court concluded that common intention constructive trust arises from express agreement and direct contributions.

Lord Bridge identified two forms of common intention constructive trusts:

  1. Express Agreement: If there was an agreement before the property acquisition that it would be shared beneficially, and the party relied on it to their detriment, a constructive trust arises.

  2. Implied Agreement: Where there’s no express agreement, the court infers from conduct and contributions whether there was a common intention to share the property beneficially.

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London and South West Railway Co v Gomm (1882) 20 Ch D 562

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Krelinger v New Patagonia Meat Company [1914] AC 25