Zheng v Cai

The High Court of Australia considered a dispute between Mr Zheng and Ms Cai concerning the ownership of a property. The central issue revolved around whether a resulting trust had arisen in favour of Ms Cai over the property, despite the legal title being registered solely in Mr Zheng's name.

The High Court was required to determine whether the presumption of advancement, which typically applies where a husband purchases property in his wife's name, was rebutted by the evidence. Specifically, the Court had to consider whether the contributions made by Ms Cai towards the purchase price and subsequent mortgage repayments were intended by the parties to be a gift to Mr Zheng, or whether they were made with the expectation of a beneficial interest in the property.

The Court analysed the evidence presented, including the parties' financial contributions and their conduct. It was held that the presumption of advancement was not applicable in this instance, as the parties were not married and had no intention of marrying. Instead, the Court applied the presumption of a resulting trust, which presumes that a person who contributes to the purchase of property intends to retain a beneficial interest proportionate to their contribution. The evidence demonstrated that Ms Cai had made significant financial contributions towards the property with the intention of acquiring a beneficial interest, and this intention was not rebutted by any evidence suggesting a gift.

The High Court found in favour of Ms Cai, holding that a resulting trust had arisen in her favour. The Court ordered that the property be held on trust for Ms Cai to the extent of her beneficial interest.