Which of the Following Statements Is False in Relation to the Relationship

question 6

Multiple Choice

Which of the following statements is false in relation to the relationship between resulting trusts and an action in restitution for unjust enrichment

• A) A restitutionary resulting trust arises where a party receives unjust enrichment from a contract which fails for lack of consideration or under a mistake.
• B) Resulting trusts do not arise in situations of unjust enrichment through mistake since the conscience of the recipient of the payment would not have been affected at the time of the transaction, as they would have been unware of the mistake.
• C) Resulting trusts do not arise in relation to claims for unjust enrichment as it would provide unwarranted proprietary entitlements to the claimants.
• D) Resulting trusts and unjust enrichment are separate actions, but can be pleaded together on the same set of facts.

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Definitions:

Subject to the mortgage

This phrase denotes that a property is encumbered by a mortgage, meaning any dealings with the property must take into account the mortgage's terms and conditions.

Unregistered Mortgage

An unregistered mortgage refers to a mortgage agreement that has not been formally recorded with a governmental registry or legal authority, potentially affecting its enforceability and priority against other claims.

Prevailing Interest Rates

are the current rates of interest which banks and other financial institutions charge on loans and pay on deposits.

Second Mortgages

A type of mortgage taken out on a property that is already mortgaged, generally used to access home equity.