A constructive trust is created by operation of law to avoid fraud.

Question

Quizplus · Accepted Answer

A constructive trust is indeed created by operation of law to prevent unjust enrichment or fraud. It arises when one person wrongfully obtains or retains property that belongs to another, and the law deems them to be holding that property in a fiduciary capacity. This means that they hold the property in trust for the rightful owner, even though no formal trust agreement has been made.

A Constructive Trust Is Created by Operation of Law to Avoid