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#equity #law #tracing

Into Whose Hands can Property be Traced?

It can be traced into the hands of the person who misapplied it.
It can be traced into the hands of a person who received it with knowledge that it was misapplied. This will lead to a proprietary claim and a personal action (see 18.4 below and Chapter 19 for further details on personal claims).
It can also be traced into the hands of an innocent volunteer, that is a person who is given the property without providing consideration and who has no knowledge of the property’s provenance (Re Diplock).
Property cannot be traced into the hands of a bone fide purchaser for value without notice. According to dicta in Lipkin Gorman v Karpnale Ltd, the consideration given by the purchaser need not be adequate.

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