Journal of Research and Development in Comparative Law

Journal of Research and Development in Comparative Law

Reward Taken by a Trustee from a Third Party, With a Glance at English Law

Document Type : scientific research paper

Author
Hosein Bahrami
Assistant Professor, Department of Jurisprudence and Islamic law, Bozorgmehr University of Qaenat, Qaenat, Iran
10.22034/law.2024.2036736.1424
Abstract
A trustee may receive a reward due to the position he has as a trust the ownership of which is disputed. In some cases, the legislator considers such a reward as a bribe and, as punishment, confiscates it for the benefit of the government. However, it is silent on other cases. Doctrine has also not paid sufficient attention to this matter, making it necessary to closely scrutinize and examine this issue. In English law, considering that the trustee is obliged to be loyal to the beneficiary, receiving a reward by him is regarded as contrary to that duty and the asset acquired will belong to the beneficiary. The findings of the present research indicate that a distinction should be made in Iranian law. In some cases, a contract of gift concluded between a trustee and a third party is correct, and the reward belongs to the trustee. 
In the case that, based on the agreement between the mentioned persons, the action of trustee is against the interests of the beneficiary and the juridical act concluded by trustee is invalidated, or the subject matter of the said agreement is detrimental to the beneficiary, relying upon Article 975 of Civil Code, the contract of gift is invalid and the third party can take back his property. In the case that the contract is a commutive contract and receiving a reward for performing an action is not contrary to the interests of the beneficiary, or the aforementioned person ratifies the act of the trustee despite the above fact, the reward belongs to the beneficiary. The nature of the reward in this case is not a contract of gift and the reward is a part of the consideration.
Keywords
trustee
reward
third party
loyalty
restitution

Subjects

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