constructive trust

In Anglo-American law, a constructive trust is imposed by courts to remedy a legal wrong, even if the parties did not intentionally create a trust. This differs from express trusts, which are deliberately established.1

A trust involves a relationship where one person, the trustee, holds legal title to property and manages it, while another person, the beneficiary, is entitled to the benefits from that property. The trustee has a fiduciary duty to act in the beneficiary's best interest.1

Constructive trusts are often imposed when one party obtains property from another through fraudulent means, requiring the wrongdoer to hold the property for the benefit of the defrauded party. This legal mechanism aims to prevent unjust enrichment and ensure fairness.1