Confidential Relationship Theory

The constructive trust, often referred to as a trust "implied in law," has been generally recognized as an exception to the Statute of Frauds. Fraud, duress, mistake, undue influence, or the breach of a fiduciary relationship may all be the basis for a constructive trust. Promises to convey or to hold property in trust, which would ordinarily be unenforceable under the statute, have often resulted in the imposition of a constructive trust when the abuse of a confidential relationship has been found.3 The "abuse of confidence" exception to the statute, which defies accurate definition, has provided courts of equity with an elastic means for intervention whenever such is considered just and proper.and confidence can be found in every transaction involving a fiduciary. To this extent, the fiduciary relationship is undoubtedly "confidential." The true fiduciary relationship and the duties and obligations which adhere thereto, however, can generally be placed into distinct categories wherein an underlying legal relationship also exists. Such would...