Home / Summaries / WS6. Running a trust. Fiduciary duties. / account-trustee-profit

Breaches of fiduciary duty - Incidental profits

Q: Explain the issue of the landlord refusing to renew the lease in favour of the trus t and instead of granting a new lease to the trustee perosnally ? What is the main authority?

In Keech v Sanford , the landlord refused to renew the lease for the trust and instead granted a new lease to the trustee personally. It was held that the trustee must account for the profit made. The trustee was strictly liable which meant the honesty of the trustee was immaterial.

4 important questions on Breaches of fiduciary duty - Incidental profits

Are trustees expected to account for any personal profit gained by virtue of their position as trustees?

Trustees are expected to account for personal profit when trustees gain valuable information or opportunities which can be used to their advantage by virtue of their trusteeship. Trustees must account for any personal profit gained from the use of trust property.

Explain why the footballer's agents had to account to J in Imageview Management Ltd v Jack?

A footballer entered into an agreement with an agent who secured him a contract with a club. The footballer paid the agent its fee. The agent did not tell the footballer that the club paid them an inflated sum of £3,000 to obtain a work permit. It was held that the £3,000 was a secret profit and the agent had to account for the profits.

Explain the issue of the landlord refusing to renew the lease in favour of the trust and instead of granting a new lease to the trustee perosnally? What is the main authority?

In Keech v Sanford, the landlord refused to renew the lease for the trust and instead granted a new lease to the trustee personally. It was held that the trustee must account for the profit made. The trustee was strictly liable which meant the honesty of the trustee was immaterial.

Explain the modern application of the rule in Keech v Sanford in Don King Productions Inc v Warren and others?

Two boxing promoters entered a partnership and each held the benefit of any management or promotion agreement concluded previously. It was held that the trust property was renewed in favour of a trustee and not the partnership.

The question on the page originate from the summary of the following study material:

WS6. Running a trust. Fiduciary duties.

View summary

A unique study and practice tool
Never study anything twice again
Get the grades you hope for
100% sure, 100% understanding

Remember faster, study better. Scientifically proven.

Topics that are related to Breaches of fiduciary duty - Incidental profits