UK · Year 3 · Equity & Trusts
Fiduciaries & Third Parties
No-profit rule, tracing and accessory liability.
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Show all 5 questions and answers in this book
1.Keech v Sandford (1726) — principle?
A trustee must not profit from their position; the renewed lease was held on trust for the infant beneficiary.
(1726) Sel Cas Ch 61
2.Boardman v Phipps [1967] — held?
Fiduciaries who used information obtained through their position to make a profit were liable to account, even though they acted honestly and the trust also benefited.
[1967] 2 AC 46 (HL)
3.FHR European Ventures v Cedar Capital Partners [2014] — held?
A bribe or secret commission received by an agent is held on constructive trust for the principal.
[2014] UKSC 45
4.Royal Brunei Airlines v Tan [1995] — basis of accessory liability?
Dishonest assistance in a breach of trust; dishonesty is the touchstone, not the trustee's state of mind.
[1995] 2 AC 378 (PC)
5.Trustee Act 2000, s 1 — duty?
The statutory duty of care: such care and skill as is reasonable in the circumstances, having regard to special knowledge or experience.
Trustee Act 2000, s 1