Dispositions In Breach Of Trust By Trustees

This paper is aimed at analyzing the dispositions in breach of trust by trustees.The stated purpose of the trust comes from the trust and the intention of the trustee to set up the trust.The trustee's disposition in breach of trust can be seen as falsification.The trustee shall pay pecuniary compensation or restore the damaged property if the trustee disposes of the trust property in breach of trust.The liability for damages has a composite nature of both debt non-performance and tort liability.When the trustee disposes of the trust property to a third party in breach of trust,the beneficiary can follow trust property,which means disposition between the trustee and the third party through can be revoked by exercise of the rescission.Needless to say,the right to rescind only belongs to the beneficiary.The beneficiary's right is a personal right,and the recession of the beneficiary can be regarded as one of the actio pauliana,which can be used to explain the beneficiary's ability against the third party.But beneficiary's recession is different from actio pauliana in terms of constituent elements.Therefore,it is necessary to find other explanations.One possible method is to apply the unauthorized disposition rules in civil law.The trust law protects the bona fide purchaser of the trust property,but the volunteer is not included,which means the protection to the third party should be limited the bona fide purchaser for value without notice of the breach of trust,this can also be compatible with the goodwill of the civil law norms as a special provision for unauthorized disposition.