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A constructive trust is one created by a court (regardless of the intent of the parties) to benefit a party that has been wrongfully deprived of its rights. It is a trust created under the law of equity.
This may arise, for example, when person A has been given funds (say, mistakenly by a bank) and it would be inequitable (unfair) for her to keep them. She will hold those funds on constructive trust for the bank (a trust constructed around the principles of fairness).
A constructive trust is created to remedy (or make up for) a situation where there is ‘unjust enrichment’. If a person has possession of property (money, real estate, or other assets) that they should not have because they obtained it unfairly through mistake, fraud or breach of a fiduciary duty, this would be an unjust enrichment.
[See ‘Equity’.]
A contingent claim is one that is lodged by a creditor, but the amount being claimed is dependant on the happening of a certain event. An example is a claim by HMRC for a payment of VAT which will only apply if claims for input tax are rejected.
If a proof relates to a contingent debt, the officeholder will estimate its value, or seeks directions of the court. In reality it is much better to agree the amount with the creditor.
[See ‘HMRC’, ‘Officeholder’ and ‘VAT’.]
In professions such as accountancy, law, architecture and medicine, where changes to practice and law happen on a regular basis, it is important for those qualified to practice to keep regularly updated. This is done through Continuing Professional Development (CPD), sometimes known as ‘Continuing Professional Education’ (CPE).
