Weekly review: 2nd – 6th January


Common intention constructive trust

Fan Siu Ngan v Yeung Kin Yip provides a simple example of the common intention constructive trust in action.

Common intention constructive trust: proprietary estoppel

The fact that one party enters into a transaction under a misapprehension as to its terms does not give rise to any kind of equitable claim (based either on estoppel or constructive trust) to give effect to a transaction on the terms that had been anticipated by the mistaken party (Crossco No 4 Unlimited v Jolan Limited).

Leases: guarantees: undue influence

Where a landlord insists on a guarantee it should insist that the guarantor seek independent legal advice to ensure that he understands and accepts the risk. Otherwise, the landlord will have constructive notice of any undue influence (Beardsley Theobalds Retirement Scheme Trustees v Yardley).

Leases: joint tenants: notice to quit

When one joint tenant is induced to serve notice to quit in respect of a periodic tenancy by the landlord’s misrepresentation, the normal rule applies and the joint tenant must either affirm or avoid the notice to quit: there is no third way by virtue of which the notice operates as a surrender to the other joint tenant  (Potter v Dyer).

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