lsquo Constructive Trusts rsquo refers to which of the following ........

Limitation Act (LA) 1963 Introduction and Definition

‘Constructive Trusts’ refers to which of the following?

It is not a trust

It is merely an obligation in the nature of trust

both (A) and (B)

None of these

- Option 1: "It is not a trust"

- Constructive trusts are not traditional express trusts. They arise by operation of law, not by express intention.

- Option 2: "It is merely an obligation in the nature of trust"

- Correct. Constructive trust means there is an obligation on a person to hold property on behalf of another, even though it is not a formal trust.

- Option 3: "Both (A) and (B)"

- This combines both previous statements and is accurate. Constructive trusts are not true trusts, but obligations treated as a trust by law.

- Option 4: "None of these"

- This is not correct, since options (A) and (B) apply.

Correct Answer: Option 3 - Both (A) and (B)

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