Which of the Following Statements Is False in Relation to Intervention

question 7

Multiple Choice

Which of the following statements is false in relation to intervention of equity in the family home and the devices it employs?

• A) Many co-habiting couples do not think about their property entitlements on the breakdown of the relationship, so do not enter into express trusts, and equity must fill the gap.
• B) The operation of resulting trusts is based on the rebuttable presumption of the purchase money resulting trust, and may be of considerably reduced importance in the modern day.
• C) Equity, through a variety of mechanisms, provides rights akin to marriage to non-marital heterosexual and same-sex cohabitants.
• D) Proprietary estoppel, while similar in requirements to a constructive trust, differs in the range of remedies available to meet the cause action (equity) established through the doctrine.

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Definitions:

Discount Rate

The interest rate used to discount future cash flows of a financial asset to present value, reflecting the time value of money and investment risk.

Required Return

is the minimum rate of return an investor expects to receive from an investment, considering the investment's risk level.

Flotation Costs

Costs associated with a company issuing new securities, such as fees for underwriting, legal assistance, and registration.

Cost of Capital

The essential profit rate that companies need to hit on their investments to uphold their value in the market and attract capital.