Master Resulting and Constructive Trusts in Law: Interactive Quizzes

Question 1

Which scenario commonly gives rise to a resulting trust?

Accepted Answer

When one party pays for property but legal title is conveyed to another

Answer

When a property is acquired through fraud

Answer

When a gift is made in contemplation of marriage but the marriage does not take place

Answer

When an agent breaches their duty to their principal

Question 2

Which of the following is NOT a key element of a constructive trust?

Accepted Answer

Declaration of trust

Answer

Unjust enrichment

Answer

Reimbursement of expenses

Answer

Fiduciary duty

Question 3

In a resulting trust, who is presumed to have intended to create the trust?

Accepted Answer

The person who paid for the property

Answer

The person who holds legal title to the property

Answer

The beneficiary of the trust

Answer

The settlor of the trust

Question 4

Which of the following is a characteristic unique to constructive trusts imposed to prevent unjust enrichment?

Accepted Answer

The beneficiary is not required to prove an intention to create a trust

Answer

The trustee is considered to be a fiduciary

Answer

The trust arises automatically by operation of law

Answer

The statute of limitations does not apply

Question 5

Which type of constructive trust is created by statute?

Accepted Answer

Statutory constructive trust

Answer

Express constructive trust

Answer

Implied constructive trust

Answer

Resulting constructive trust

Question 6

The Statute of Frauds applies to:

Accepted Answer

Only express trusts of land

Answer

All trusts of land

Answer

Only resulting trusts of land

Answer

Only constructive trusts of land

Question 7

Which essential element is required for the creation of a resulting trust?

Accepted Answer

Transfer of property with no specified intention to create a trust

Answer

Payment of consideration by the transferee

Answer

Express declaration of intent to create a trust

Answer

Absence of consideration paid by the transferee

Question 8

In a constructive trust, the trustee's title to the property is:

Accepted Answer

Limited and subject to the trust

Answer

Absolute and beneficial

Answer

Absolute but subject to the trust

Answer

Limited and beneficial

Question 9

Which of the following statements about resulting trusts is accurate?

Accepted Answer

They are presumed to arise from an implied intention.

Answer

They can only be created orally.

Answer

They are always express trusts.

Answer

They are not subject to the Statute of Frauds.

Question 10

In a case of undue influence, the constructive trust:

Accepted Answer

Vests equitable title in the victim

Answer

Vests legal title in the victim

Answer

Extinguishes the original transaction entirely

Answer

Creates a new fiduciary relationship between the parties

Question 11

Which of the following scenarios is most likely to give rise to a resulting trust?

Accepted Answer

Transfer of property to a child with no specified purpose

Answer

Purchase of property in joint names with equal contributions

Answer

Transfer of property to a charity for charitable purposes

Answer

Transfer of property to a business partner as part of a commercial transaction

Question 12

The doctrine of bona fide purchaser for value without notice:

Accepted Answer

Protects a subsequent purchaser who acquires legal title to trust property in good faith and without knowledge of the trust

Answer

Overrides the principle that a person cannot transfer a better title than they have

Answer

Allows a trustee to sell trust property to a third party even if the trustee breaches their fiduciary duties

Answer

Applies exclusively to registered land

Question 13

In the context of a trust, the term 'beneficiary' refers to:

Accepted Answer

The person who benefits from the trust.

Answer

The person who creates the trust.

Answer

The person who manages the trust.

Answer

The person who enforces the trust.

Question 14

Which of the following is NOT a characteristic of a resulting trust?

Accepted Answer

Established through express declaration

Answer

Arises automatically by operation of law

Answer

Inferred from the presumed intention of the parties

Answer

Implied from the surrounding circumstances

Question 15

What is the primary purpose of a constructive trust?

Accepted Answer

To prevent unjust enrichment

Answer

To remedy a breach of contract

Answer

To enforce a charitable gift

Answer

To protect the rights of beneficiaries

Question 16

What is the primary distinction between a resulting trust and a constructive trust?

Accepted Answer

Resulting trusts arise from the parties' presumed intent, while constructive trusts arise from equitable principles.

Answer

Resulting trusts are express, while constructive trusts are implied.

Answer

Resulting trusts require consideration, while constructive trusts do not.

Answer

Resulting trusts are enforceable at law, while constructive trusts are enforceable only in equity.

Question 17

Constructive Trusts and Unjust Enrichment

Explain the primary purpose of imposing constructive trusts as a remedy to prevent unjust enrichment in cases involving breach of fiduciary duty.

Accepted Answer

To transfer legal title to the injured party who has been unjustly enriched by the fiduciary's breach.

Answer

To deter future breaches of fiduciary duty by punishing the wrongdoer.

Answer

To create a security interest in the property for the victim of the fiduciary's breach.

Answer

To provide tax advantages to the beneficiary of the constructive trust.

Question 18

Under which circumstance will a constructive trust NOT arise?

Accepted Answer

Where a fiduciary retains a benefit acquired in the course of their duties without breaching any legal obligations.

Answer

Where a person unjustly acquires enrichment at the expense of another party.

Answer

Where a person unlawfully disposes of property that rightfully belongs to another party.

Question 19

What is the primary purpose of a constructive trust?

Accepted Answer

To restore property, unjustly acquired, back to its rightful owner.

Answer

To create a permanent trust for charitable purposes.

Answer

To avoid the probate process and ensure asset distribution as per the will.

Question 20

In the context of constructive trusts, what is the rationale behind the 'unjust enrichment' requirement?

Accepted Answer

To prevent parties from unfairly benefiting from their own wrongful actions.

Answer

To establish the intention of the settlor.

Answer

To ensure that the trust is established for a charitable purpose.

Question 21

Which exception to the 'no constructive trusts against volunteers' rule is widely recognized?

Accepted Answer

Where the volunteer has assumed responsibility for the property.

Answer

Where the volunteer is closely related to the beneficiary.

Answer

Where the volunteer has acted in good faith.

Question 22

What is the fundamental difference between a constructive trust and a resulting trust?

Accepted Answer

Constructive trusts are imposed by law, whereas resulting trusts are implied by law.

Answer

Resulting trusts are always rebuttable, while constructive trusts are not.

Answer

Constructive trusts are established for charitable purposes, unlike resulting trusts.

Question 23

Which remedy is commonly ordered by courts in response to a breach of trust in the context of resulting and constructive trusts?

Accepted Answer

Directing the trustee to transfer the property to the rightful beneficiary.

Answer

Terminating the trust.

Answer

Imposing a fine on the trustee.

Question 24

To establish a constructive trust, it is essential to demonstrate:

Accepted Answer

Unjust enrichment, a causal connection between the enrichment and the defendant's conduct, and the absence of an adequate legal remedy.

Answer

Intention to create a trust, property transfer, and acceptance by the beneficiary.

Question 25

Which consequence is NOT typically associated with a breach of a resulting trust?

Accepted Answer

Imprisonment of the trustee.

Answer

Termination of the trust.

Answer

Personal liability for the trustee.

Answer

Loss of property for the beneficiary.

Question 26

Which purpose is considered legitimate for the imposition of a constructive trust?

Accepted Answer

To prevent unjust enrichment.

Answer

To punish the wrongdoer.

Answer

To deter potential wrongdoing.

Answer

To reward the victim.