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Equity Queestions

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Equity Queestions

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All purposes recognised by the law as charitable must exist for the public

benefit. Unfortunately, what that means is unclear.’


Discuss.

‘Liability for “knowing (or unconscionable) receipt” of trust property and


liability for “dishonest assistance” are ways in which a stranger may be
liable to the beneficiaries of a trust consequent on a breach of trust. That,
however, is as far as the similarities go.

Discuss, explaining the basis for a person’s liability in these two
situations.

Discuss whether there is a coherent rationale that can explain the


circumstances in which resulting trusts arise.

Secret trusts are in fact a type of constructive trust and, as such, there
is no justification for different rules about the enforcement of fully-secret
and half-secret testamentary trusts.’
Discuss.

Are all, or any, resulting trusts generated by the intention of the person
who becomes entitled under the resulting trust?

‘It is now clear that equity will, in fact, perfect an imperfect gift. It is just
not clear when or why.’
Discuss.

‘In the light of the advantages of charitable trusts, it is unfortunate that


the definition of “charity” is open-ended and inconsistent.’
Discuss.
‘Both types of resulting trust [“presumed” and “automatic”] are
traditionally regarded as examples of trusts giving effect to the common
intention of the parties. A resulting trust is not imposed by law against
the intentions of the trustee (as is a constructive trust) but gives effect to
his presumed intention. Megarry J. in In re Vandervell (No. 2) suggests
that [an automatic] resulting trust … does not depend on intention but
operates automatically. I am not convinced that this is right.’ (Lord
Browne-Wilkinson, Westdeutsche Landesbank Girozentrale
(Respondents) v. Council of the London Borough of Islington
(Appellants) [1996] 2 AC 669.)
Discuss.

‘The circumstances in which a disposition must be in writing in order to


comply with section 53(1) of the Law of Property Act 1925 are unclear.’
Discuss.

‘It is well accepted that a fiduciary must not place herself in a position
where her interest and duty conflict, but it is less clear what this means
in practice.’
Discuss.

‘While there is a much discussion and uncertainty about why resulting


trusts exist, there is much less uncertainty about when they will arise.
The practical application of the law is clear enough.’
Discuss

Are there any reasons to distinguish between a stranger’s liability for


dishonestly assisting in a breach of trust and a stranger’s liability for
unconscionably receiving trust property in breach of trust?

Is it possible to define with clarity the concept of public benefit in the law
of charity?
‘In the law of England and Wales, it is said that constructive trusts are
institutional, and never remedial. But it also has been said that, in some
cases, the constructive trust imposed on the defendant is not a true trust.
It is unclear how both these statements can be true.’
Discuss.

‘Equity will not perfect an imperfect gift, except when it does.’


Discuss.

The rule against non-charitable purpose trusts has resulted in an


unjustified expansion of the definition of a charitable purpose.’
Discuss.

A trustee must not place themselves in a position where their interest


and duty conflict.’
Discuss, including whether examples of the liability are linked by a
central principle.

‘In determining whether a trust has been completely constituted, it is


important to remember that the relevant principles exist for a reason. We
need to be careful not to allow “unconscionability” to be a universal
remedy for any failure by the parties to carry out their intentions properly.’
Discuss.

‘It is important not to forget the relationship between the law of trusts and
the law of contract, especially when considering how trusts principles
should be applied in commercial contexts.’
Critically discuss.

2. ‘The English rules in relation to equitable tracing are complex,


haphazard and inconsistent. Simplification is required.’
Critically discuss.
3. ‘There are very good reasons for the prohibition, in English law, of non-
charitable purpose trusts. This prohibition should not be relaxed.’
Critically discuss.

1. ‘The conditions for tracing in equity are clear and uncontroversial.’


Discuss.

2. Consider and discuss the relevance of intention in establishing a


resulting trust.

3. ‘A trustee must not place herself in a position where her interest and duty
conflict.’
Discuss.

“Judges have been far too willing to allow the circumvention of statutory
provisions that require that transactions are effected or evidenced by
signed writing. Those provisions are included for good reason.”
Critically discuss.

To what extent, if at all, do the legal principles that underpin the law of
trusts need to be adjusted as between trusts that arise in family or
domestic settings and trusts that arise in commercial settings?

Critically analyse the extent to which trustees should be able to avoid


liability for breach of trust, in particular by obtaining the consent of the
beneficiaries, relying on an exemption clause or invoking section 61 of
the Trustee Act 1925.

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