Lawgist88Advantage gained by fiduciary
Where a trustee, executor, partner, agent, director of a company, legal advisor, or other person bound in a fiduciary character to protect the interests of another person, by availing himself of his character, gains for himself any pecuniary advantage, or where any person so bound enters into any dealings under circumstances in which his own interests are, or may be, adverse to those of such other person and thereby gains for himself a pecuniary advantage, he must hold for the benefit of such other person the advantage so gained.
Illustrations
(a) A, an executor, buys at an undervalue from B, a legatee, his claim under the will. B is ignorant of the value of the bequest. A must hold for the benefit of B the difference between the price and value.
(b) A, a trustee, uses the trust-property for the purpose of his own business. A holds for the benefit of his beneficiary the profits arising from such user.
(c) A, a trustee, retires from his trust in consideration of his successor paying him a sum of money. A holds such money for the benefit of his beneficiary.
(d) A, a partner, buys land in his own name with funds belonging to the partnership. A holds such land for the benefit of the partnership.
(e) A, a partner, employed on behalf of himself and his co-partners in negotiating the terms of a lease, clandestinely stipulates with the lessor for payment to himself of a lakh of rupees. A holds the lakh for the benefit of the partnership.
(f) A and B are partners. A dies. B, instead of winding up the affairs of the partnership, retains all the assets in the business. B must account to As legal representative for the profits arising from As share of the capital.
(g) A, an agent employed to obtain a lease for B, obtains the lease for himself. A holds the lease for the benefit of B.
(h) A, a guardian, buys up for himself incumbrances on his ward Bs estate at an undervalue. A holds for the benefit of B the incumbrances so bought, and can only charge him with what he has actually paid.
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- 1 Short title
- 2 Repeal of enactments
- 3 Interpretation-clause
- 4 Lawful purpose
- 5 Trust of immoveable property
- 6 Creation of trust
- 7 Who may create trusts
- 8 Subject of trust
- 9 Who may be beneficiary
- 10 Who may be trustee
- 11 Trustee to execute trust
- 12 Trustee to inform himself of state of trust-property
- 13 Trustee to protect title to trust-property
- 14 Trustee not to set up title adverse to beneficiary
- 15 Care required from trustee
- 16 Conversion of perishable property
- 17 Trustee to be impartial
- 18 Trustee to prevent waste
- 19 Accounts and information
- 20 Investment of trust-money
- 20A Power to purchase redeemable stock at a premium
- 21 Mortgage of land pledged to Government under Act 26 of 1871
- 22 Sale by trustee directed to sell within specified time
- 23 Liability for breach of trust
- 24 No set-off allowed to trustee
- 25 Non-liability for predecessor’s default
- 26 Non-liability for co-trustee’s default
- 27 Several liability of co-trustees
- 28 Non-liability of trustee paying without notice of transfer by beneficiary
- 29 Liability of trustee where beneficiary’s interest is forfeited to the Government
- 30 Indemnity of trustees
- 31 Right to title-deed
- 32 Right to reimbursement of expenses
- 33 Right to indemnity from gainer by breach of trust
- 34 Right to apply to Court for opinion in management of trust -property
- 35 Right to settlement of accounts
- 36 General authority of trustee
- 37 Power to sell in lots, and either by public auction or private contract
- 38 Power to sell under special conditions
- 39 Power to convey
- 40 Power to vary investments
- 41 Power to apply property of minors, etc., for their maintenance, etc
- 42 Power to give receipts
- 43 Power to compound, etc
- 44 Power to several trustees of whom one disclaims or dies
- 45 Suspension of trustee’s powers by decree
- 46 Trustee cannot renounce after acceptance
- 47 Trustee cannot delegate
- 48 Co-trustees cannot act singly
- 49 Control of discretionary power
- 50 Trustee may not charge for services
- 51 Trustee may not use trust-property for his own profit
- 52 Trustee for sale or his agent may not buy
- 53 Trustee may not buy beneficiary’s interest without permission
- 54 Co-trustees may not lend to one of themselves
- 55 Rights to rents and profits
- 56 Right to specific execution
- 57 Right to inspect and take copies of instrument of trust, accounts, etc
- 58 Right to transfer beneficial interest
- 59 Right to sue for execution of trust
- 60 Right to proper trustees
- 61 Right to compel to any act of duty
- 62 Wrongful purchase by trustee
- 63 Following trust-property into the hands of third persons; into that into which it has been converted
- 64 Saving of rights of certain transferees
- 65 Acquisition by trustee of trust-property wrongfully converted
- 66 Right in case of blended property
- 67 Wrongful employment by partner-trustee of trust property for partnership purposes
- 68 Liability of beneficiary joining in breach of trust
- 69 Rights and liabilities of beneficiary’s transferee
- 70 Office how vacated
- 71 Discharge of trustee
- 72 Petition to be discharged from trust
- 73 Appointment of new trustees on death, etc
- 74 Appointment by Court
- 75 Vesting of trust-property in new trustees
- 76 Survival of trust
- 77 Trust how extinguished
- 78 Revocation of trust
- 79 Revocation not to defeat what trustees have duly done
- 80 Where obligation in nature of trust is created
- 81 [Repealed.]
- 82 [Repealed.]
- 83 Trust incapable of execution or executed without exhausting trust -property
- 84 Transfer for illegal purpose
- 85 Bequest for illegal purpose
- 86 Transfer pursuant to rescindable contract
- 87 Debtor becoming creditor’s representative
- 88 Advantage gained by fiduciary
- 89 Advantage gained by exercise of undue influence
- 90 Advantage gained by qualified owner
- 91 Property acquired with notice of existing contrac
- 92 Purchase by person contracting to buy property to be held on trust
- 93 Advantage secretly gained by one of several compounding creditors
- 94 Repealed
- 95 Obligor’s duties, liabilities and disabilities
- 96 Saving of rights of bona fide purchasers
