then claimed that as he was not the transferee, he did not have to pay the vendors; it was held that this fraudulent misrepresentation meant he held the property on constructive trust. However, in Lonrho, Millett J held that "A contract obtained by fraudulent misrepresentation is voidable, not void, even in equity. The representee may elect to avoid it, but until he does so, the representor is not a constructive trustee of the property transferred pursuant to the contact, and no fiduciary relationship exists between him and the representee". Fiduciary making unauthorised profits Where a person in a fiduciary office earns unauthorised profits as a result of their position, this money is held on constructive trust. This principle originated with Keech v Sandford, and the rule was first fully defined in Bray v Ford, where Lord Herschell said that: The questions then are fourfold; what is the justification for such a constructive trust, how can authorisation be acquired, who does the fiduciary owe duties to, and what are the remedies for unauthorised profit-making. The main case on this is Boardman v Phipps, where the House of Lords espoused two possible justifications: The first one is that it is a strict rule that a fiduciary cannot allow a conflict of interest. As such, if a fiduciary does do so, he is required to account to the beneficiaries of his office, regardless of whether or not he has acted in bad faith. The second justification is one given by Lords Hodson and Guest in Boardman, which concerned the use of confidential information by a trustee for the trustee's personal gain. Hodson and Guest held that where such a situation arises, the constructive trust is justified not only to avoid conflicts of interest but also because such information is trust property, and using it for personal gain is misuse. There is no requirement that the profit be directly made from the fiduciary position, merely in a way that causes a conflict between the fiduciary's personal interests and his duties. If a trustee was informed by the trust's stockbroker that only one parcel of highly sought-after stocks remained and chose to purchase it for himself rather than for the trust, he would be taking advantage of the trust and causing a conflict of interest. On the second issue, Boardman confirmed a defence of authorisation. If the fiduciary has informed the beneficiaries that he is