MODERN LAND LAW Essay Example | Topics and Well Written Essays - 2000 words

MODERN LAND LAW - Essay Example Trusts of this nature are ‘created by a transaction between the trustee and the cestui que trust in connection with the acquisition by the trustee of a legal estate in land, whenever the trustee has so conducted himself that it would be inequitable to allow him to deny to the cestui que trust a beneficial interest in the land acquired. And he will be held to have so conducted himself if by his words or conduct he has induced the cestui que trust to act to his own detriment in the reasonable belief that by so acting he was acquiring a beneficial interest in the land.’2 The case giving way to Lord Diplock’s observations, Gissing v Gissing involved a scenario where matrimonial property was held in the name of the husband only. The questions for determination were: Did the husband hold the legal title upon trust for the benefit of both he and the wife. And if so, how were the beneficial interests to be divided? In cases such as this, Lord Diplock opined that court must satisfy itself on the evidence that it was ‘the common intention of both spouses that the contributing wife should have a share in the beneficial interest and that her contributions were made upon this understanding.’3 In many cases, the intention or common understanding of the parties will have to be inferred as there is not always going to be statements of intent from either or both parties. Lord Diplock went on to explain that this inference might also be a mere matter of fact. In many cases he explained and husband and wife purchase a matrimonial home by virtue of a mortgage, the capacity of each spouse to contribute to the monthly mortgage payments will usually come out of their separate earnings. However, a woman’s income might be altered by the introduction of children into the marital union. This, Lord Diplock stated should not operate to negate the common intention of both parties to acquire a