Definition

1. Noun:
   • A trust created by a court (regardless of the intent of the parties) to benefit a party that has been wrongfully deprived of its rights: A "constructive trust" is a legal remedy imposed by a court to prevent unjust enrichment. It is not based on an agreement between parties but is constructed by law to address a wrongdoing, such as fraud or breach of fiduciary duty. The court treats the person holding the property as if they were a trustee, obligated to hold it for the benefit of the wronged party.

Usage Examples

• Noun:
  • The court imposed a constructive trust on the property to prevent the fraudulent buyer from profiting.
  • Because he used stolen funds to purchase the car, a constructive trust was established in favor of the victim.

Advanced Usage

• "to impose a constructive trust": The legal action of a court creating this trust.
  • The judge decided to impose a constructive trust to rectify the financial misconduct.
• "held under a constructive trust": Describes property subject to this legal arrangement.
  • The disputed assets are now held under a constructive trust for the original owners.

Variants and Related Words

• Resulting Trust (n): Another equitable remedy where a trust is implied by the circumstances, often from the parties' presumed intentions, unlike a constructive trust which is imposed due to wrongdoing.
• Express Trust (n): A trust created deliberately by a settlor, which contrasts with a constructive trust imposed by law.
• Constructive (adj): In law, meaning "deemed to exist by operation of law," as in or .

Synonyms

• Implied trust: A broader category that can include both constructive and resulting trusts.
• Equitable remedy: A legal solution, like a constructive trust, granted by a court of equity to achieve fairness.

Related Phrases

• "in the nature of a constructive trust": Describing a situation or remedy that functions similarly.
  • The court's order was in the nature of a constructive trust, requiring him to surrender the profits.
• "constructive trustee": The person who is legally treated as a trustee of the property due to the imposition of a constructive trust.
  • Upon the ruling, he became a constructive trustee of the company's funds.

Related Idioms

(Note: As a specific legal term, "constructive trust" is not commonly used in idiomatic expressions. Its usage is primarily technical and legal.)

Noun

1. a trust created by a court (regardless of the intent of the parties) to benefit a party that has been wrongfully deprived of its rights