Where a promisee has obtained a promise for the benefit of a third party,a constructive trust exists.

Question

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This is the concept of a trust for a third party beneficiary, also known as a constructive trust. It arises when the promisee receives a promise from the promisor, but the intended beneficiary is the one who will actually benefit from the promise. In such a case, a trust arises by operation of law, which will hold the promisor accountable for the promise made to the beneficiary.

Where a Promisee Has Obtained a Promise for the Benefit