A more thorough explanation:

A constructive trust is a legal remedy used to prevent unjust enrichment. It is not a traditional trust, but rather a trust created by a court's power over assets that a party cannot equitably keep. The court orders the person who would otherwise be unjustly enriched to transfer the property to the intended party.

There is no set formula for when a constructive trust will be created, but common themes include stolen property, property obtained through fraudulent means, or property mistakenly delivered to the wrong party. However, if another adequate remedy exists in law, a constructive trust will not be created.

Example 1: John steals $10,000 from his employer and uses the money to buy a car. The court may impose a constructive trust on the car, ordering John to transfer ownership to his employer.

Example 2: Sarah mistakenly receives a check for $5,000 that was intended for her neighbor. If Sarah refuses to return the money, the court may impose a constructive trust on the funds, ordering Sarah to transfer the money to her neighbor.

These examples illustrate how a constructive trust can be used to prevent unjust enrichment. In both cases, the party who obtained the property (the car or the money) did so through improper means (theft or mistake). The court can use its power to impose a constructive trust, ordering the property to be transferred to the rightful owner.