What term describes a trust created by a court regardless of the parties' intentions?

• A. Constructive trust
• B. Unjust enrichment
• C. Statutory law
• D. Inter vivos

Answer: (A)

A court-imposed remedy aimed at preventing someone from being unjustly enriched when they hold property in a way that equity requires for another. This is a constructive trust: the court treats the holder as if they’re holding the property on behalf of the rightful owner, even though there was no express trust or agreement. It arises by operation of law, driven by fairness concerns, and does not depend on the parties’ intentions. It differs from statutory law (created by statutes) and from an inter vivos trust (a living trust created by the settlor during their lifetime). And while unjust enrichment explains why such a remedy is needed, the constructive trust itself is the court-created mechanism to address that inequity.