Equitable compensation for breach of a purchase trust arising from the granting of an unauthorised mortgage is to be assessed by reference to the proceeds of the mortgagee sale (the date when the loss crystallises), not the date of breach or other earlier dates. The compensation is strictly confined to loss flowing from the specific breach of trust pleaded, and claims based on exclusion from possession, denial of title, or other conduct not pleaded as breaches of trust cannot be introduced into the assessment. The beneficiary seeking equitable compensation must do equity by allowing credit for obligations assumed under the contract of sale.
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