What is the term for the trust imposed on the money or property in the possession of the agent, which should have been accounted for?

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The term that describes the trust imposed on the money or property in the possession of the agent, which the agent should have accounted for, is known as a constructive trust.

A constructive trust is not a traditional trust established by a written agreement or intention of the parties but is instead imposed by a court to prevent unjust enrichment. In agency relationships, if an agent misappropriates funds or property that they are supposed to handle on behalf of the principal, the court may impose a constructive trust on those assets to ensure that they are returned to the rightful owner. This is a form of equitable relief designed to rectify situations where one party holds property inappropriately or without lawful justification.

Other options such as a commercial trust, residuary trust, and discretionary trust do not apply in this scenario. A commercial trust typically relates to the management of business assets and lacks the specific focus on accountability by an agent. A residuary trust involves the distribution of assets remaining after specific bequests are fulfilled, while a discretionary trust allows the trustee the discretion to determine how much and when distributions are made to beneficiaries but does not address the issue of accountability that is central to a constructive trust.

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