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Trust

14 July 2011
Issue: 7474 / Categories: Case law , Law digest , In Court
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Herbert v Doyle and another [2010] EWCA Civ 1095, [2010] All ER (D) 126 (Oct)

If parties intended to make a formal agreement setting out the terms on which one or more of the parties was to acquire an interest in property, or, if further terms for that acquisition remained to be agreed between them so that the interest in property was not clearly identified, or if the parties did not expect their agreement to be immediately binding, neither party could rely on constructive trust as a means of enforcing their original agreement.

In other words, at least in those situations, if their agreement (which did not comply with s 2(1)) was incomplete, they could not utilise the doctrine of proprietary estoppel or the doctrine of constructive trust to make their agreement binding on the other party by virtue of s 2(5) of the Law of Property (Miscellaneous Provisions) Act 1989.
 

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