An Attorney Receives a Check from the Defendant in Settlement

question 54

Multiple Choice

An attorney receives a check from the defendant in settlement of a lawsuit brought by his client,the plaintiff.Even if the check is made out in the name of the attorney,it will belong to the client as a:

• A) resulting trust.
• B) constructive trust.
• C) totten trust.
• D) spendthrift trust.

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Definitions:

Contingency Payment

A payment that is contingent upon the occurrence of a specific event, not guaranteed to happen.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation, giving shareholders voting rights and a share in the company's profits via dividends.

Acquisition Transaction

A business operation in which one company purchases most or all of another company's shares to assume control.

Investment

The allocation of resources (such as capital, time, or effort) in the expectation of receiving future benefits or returns.