Weekly review: 28th November – 2nd December


An agreement giving rise to a common intention constructive trust is an alienation (eg for the purposes of section 17B(1) of the Housing Ordinance) even if entered into before the relevant property had been acquired (Ling Wing Fai Billy v Ling Shui Fai).

Constructive trust

An agreement will not give rise to a constructive trust where: (1) a formal agreement is contemplated but not concluded; (2) some of the terms to be agreed have not been agreed so that the interest in property is not identified; or (3) the parties did not expect their agreement to be immediately binding (Herbert v Doyle).

Constructive trust: proprietary estoppel

Where the estoppel is based on a common expectation it can also give rise to a constructive trust (Brightlingsea Haven Ltd v Morris).

Contracts: Agent’s authority

A principal who wishes to contest the authority of an agent to commit them to a transaction (or to a transaction on the terms agreed by the agent) must raise this point in pleadings (Wisecal Ltd v Conwell International Ltd).


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