Constructive Trust

A constructive trust is a legal remedy used to address situations where someone has wrongfully gained property or assets they shouldn't keep. It arises not from a formal agreement but from the circumstances that suggest fairness demands the person holding the property should return it to the rightful owner. Essentially, the court treats the holder as a trustee, ensuring the property is returned or its value compensated, preventing unjust enrichment. This concept emphasizes justice and equity, maintaining that certain behaviors or situations can create obligations regardless of formal contracts.