(1948) 2 All E.R. 133

Facts:

An elderly woman agreed to sell two cottages to her brother-in-law subject to an agreement that she would be allowed to live in one of them without paying rent. She later conveyed the two cottages to her brother in-law but the conveyance made no reference of their agreement. After the conveyance, the brother-in-law tried to evict her from the cottage, she argued that she had an equitable interest in one of the cottages or in another words, the brother in-law had made a declaration of trust in her favour.

Held:  ( Court of Appeal)

Although the creation of a trust of land must be proved by signed writing ( s.53(1)(b) of the LPA1925), it was held that a constructive trust arose in her favour and such a trust is exempted from the formalitiy requirement by virtue of s.53(2) of LPA 1925 . Therefore, the brother in-law could not evict the elderly lady.