THE LAW OF TRUST 355
III. Section 89
The third case arises where advantage is gained at the cost of another person by the exercise of undue influence.
This is dealt with in section 89. Section 89 says that such a person must hold the advantage for the benefit of the person who is the victim of such undue influence.
This is subject to two limitations—
(i) The advantage must have been gained without consideration or
(ii) The person must have had notice of the advantage having been gained by undue influence.
IV. Section 90
The fourth case arises where advantage is gained by a qualified owner availing himself of his position as such in derogation of the rights of other persons interested in the property.
This is dealt with in section 90. Section 90 says that such an advantage shall be held for the benefit of all and not merely for the benefit of the one who secured it.
Subject to two conditions—
(i) The others must repay their due share of expenses properly incurred for securing such advantage.
(ii) The others must bear proportionate part of their liabilities property contracted for gaining such an advantage.
- Cases covered are those of co-tenants, members of joint family, mortgagee, etc.
V. Section 93
The fifth case arises where the advantage is gained by a creditor secretly.
Such a case generally arises when the creditors accept a composition from a debtor who is unable to pay his debts in full.
If it is found that one of the creditors who is a party to the composition has by arrangement with the debtor unknown to the other creditors gains better terms for himself he shall not be