Bona Fide Purchaser in UK Law
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Independent Trustee Services Ltd v GP Noble Trustees Ltd
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The trustee acting in breach of trust can transfer the legal title, but cannot vest the beneficial interest in the property in a bona fide purchaser for value without notice, since he does not own that title and is not acting in a way which enables him, under the trust, to overreach the beneficiaries' equitable interest.
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Foskett v McKeown
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If, as a result of tracing, it can be said that certain of the policy moneys are what now represent part of the assets subject to the trusts of the purchasers trust deed, then as a matter of English property law the purchasers have an absolute interest in such moneys. This case does not depend on whether it is fair, just and reasonable to give the purchasers an interest as a result of which the court in its discretion provides a remedy.
Following is the process of following the same asset as it moves from hand to hand. Tracing is the process of identifying a new asset as the substitute for the old. Where one asset is exchanged for another, a claimant can elect whether to follow the original asset into the hands of the new owner or to trace its value into the new asset in the hands of the same owner.
It is merely the process by which a claimant demonstrates what has happened to his property, identifies its proceeds and the persons who have handled or received them, and justifies his claim that the proceeds can properly be regarded as representing his property. It identifies the traceable proceeds of the claimant's property. It enables the claimant to substitute the traceable proceeds for the original asset as the subject matter of his claim.
Both remedies are proprietary and depend on successfully tracing the trust property into its proceeds. A beneficiary's claim against a trustee for breach of trust is a personal claim. It does not entitle him to priority over the trustee's general creditors unless he can trace the trust property into its product and establish a proprietary interest in the proceeds.
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Credit Agricole Corporation and Investment Bank v Papadimitriou
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The mere possibility that such interests exist cannot be enough to warrant inquiries. There must be something which the defendant actually knows (or would actually know if he had a reasonable appreciation of the meaning of the information in his hands) which calls for inquiry. If even without inquiry or explanation the transaction appears to be a proper one, then there is no justification for requiring the defendants to make inquiries.
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Abdul Ghani El Ajou v Dollar Land Holdings Ltd Factorum NV
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This is a claim to enforce a constructive trust on the basis of knowing receipt. For this purpose the plaintiff must show, first, a disposal of his assets in breach of fiduciary duty; secondly, the beneficial receipt by the defendant of assets which are traceable as representing the assets of the plaintiff; and thirdly, knowledge on the part of the defendant that the assets he received are traceable to a breach of fiduciary duty.
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Legal Practitioners (Ireland) Act 1876
... ... such charge or right shall, unless made to a bona fide purchaser for value without notice, be ... ...
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Finance Act 1940
... ... was bona fide effected or suffered three years before ... ) any person (other than a bona fide purchaser for ... full consideration in money or money's ... ...
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Land Registration Act 2002
... ... (6) and 238 of that Act (under which a purchaser in good faith for money or money’s worth takes ... 85: Bona vacantia ... Rules may make provision about how ... ...
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Finance Act 1920
... ... transferred by him to a bona fide purchaser, and ... what part, if any, of the ... ...
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The Misguided Quest: The Clear Case against UNIDROIT
The purpose of this article is to give a perspective on the latest attempt, via a multinational agreement, to limit and control the international trade in cultural artifacts. The scope of the propo...... ... However, it goes fur-ther. It orders that a bona" fide purchaser must give up his stolen property \xE2\x80" ... ...
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THE FINE ART OF FRAUD.
... ... to the original owner and fails to shield a bona fide purchaser from lengthy litigation. One ... ...
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Payment of Pecuniary Legacies
... ... impregnable position of a legal bona fide purchaser. As it is, the conception ... ...
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Tracing Money through Art Transactions
‘Tracing’ is the means by which a person who has been wrongly deprived of a thing attempts to identify and follow that thing, or its substitute in value, into the hands of other persons to whom the...... ... a gallery and purports to sell it to a purchaser for £100,000. The gallery has two choices here, ... Bona fide purchaser for value no defence Finally, ... ...
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Fraud & Asset Tracing Against HMRC
... ... no underlying tax due, HMRC was a bona fide purchaser for ... value without ... ...
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Podcast: Pension Disputes EP1 ' Could M&B Judgment Undermine Validity Of Rule Amendments?
... ... the outcome of the bona fide purchaser defence, run by ... Mitchells & ... ...