Constitution of trusts essay

Inthe company was struck off the register, although the flat continued to be let. A court of equity will not in favour of a volunteer give to a deed any effect beyond what the law will give to it. Trusts are a way of giving effect to the intention of the settlor about the disposition of his property.

The donee has fiduciary duties as the judge explains. This is an example of self-declaration of trust, which we have already seen. Alternatively there may be no such obligations on the done except the obligation not to distribute out of the class.

Constitution of Trusts

In this case there was a covenant on the part of the wife to settle on trust certain property acquired after her marriage as part of her marriage settlement.

This means that your powers are more circumscribed. However, that still enables the beneficiary to enforce against an indefinite group. Normal contractual rules provide that a seal is good consideration at law.

If not, you would be unable to drive it legally. There are some exceptions.

Constitution of Express Trusts/UK Law Essay Sample

To conclude with the aforementioned without any doubt unconscionability is the cornerstone of many maxims in equity but with no sufficient ruling from the courts, two problems will emerge.

From the highest level of obligation downwards Fixed Trust: I cannot sue Ben to enforce my contractual rights to buy a car agreed with Chloe. In the old parlance of equity we would say that equity acted upon the conscience of the trustee to prevent him from exercising his legal rights inappropriately.

He can choose whether to constitute the trust, but this is no breach of Re Brooke as he becomes the settlor himself. Get Full Essay Get access to this section to get all help you need with your essay and educational issues.

Creation of express trusts in English law

When will beneficiaries have contractual remedy. The beneficiary cannot sue the thief, because the right the trustee has which is protected is the right to possess the car. It was a requirement that directors hold shares in the company and Ada made out a share transfer form and executed it.

Secondly, as we have established that the trust is incompletely constituted, the next question is whether Monika can compel Nixon to carry out his promise in the covenant, by, in effect, requiring specific performance thereof.

In appeal to the Court of Appeal, Clarke L. He can decide to become the full owner of the property. The settlor can also be the trustee, and declare that he holds the property on trust. Alternatively there may be no such obligations on the done except the obligation not to distribute out of the class.

If I telephone you on your birthday to say that I have a birthday present for you and will bring it over later those words do not create any legal obligation on me to do so.

Constitution of Trusts

In these two scenarios equity takes the view that the trustees, or those within the marriage consideration, have given value for the promise. There is some logic to the Re Kay position therefore.

Note though that in Zeital v Kaye [] EWCA Civ[] 2 BCLC 1 Raymond Zeital completed a stock transfer form innaming Stefka, with whom he had formed a relationship, as the transferee of shares in a company, Dalmar which had purchased a flat for letting.

Constitution Of Trusts Problem

The last case of Pennington v Waine and the rationale behind the decision of the Court of Appeal is what we must consider since it can interpret the way that equity can intervene as to the legality of a decision and the relevant transaction.

We can represent this graphically with S representing the settlor, T the trustee and B the beneficiary. This means he has full ownership. Raymond had done none of these things and so the shares devolved on the intestacy rules.

There are therefore a great variety of allowable activities I can engage in. This is because they are obligations. Lastly, we must consider whether Nixon can sell his shares. The court held that a gift was complete in equity when the transferor had done all he could do to transfer the property.

This is a right the beneficiary does not have, unless in pursuance of his obligations the trustee has handed the car say over to the beneficiary and allowed him to drive it.

The second is a transfer to trustees on trust, and the third a self-declaration of trust. I cannot sue Ben to enforce my contractual rights to buy a car agreed with Chloe. However, there is no indication that she has suffered any detriment, and therefore, she will probably be entitled to nothing from the shares.

He must comply with the wishes of the deceased and hand out the property to the beneficiaries, of which of course he may be one.

The creation of express trusts in English law must involve four elements for the trust to be valid: capacity, certainty, constitution and formality. Capacity refers to the settlor 's ability to create a trust in the first place; generally speaking, anyone capable of holding property can create a trust.

Constitution of Express Trusts/UK Law Essay PAGE * MERGEFORMAT 1 Property 2 Constitution is the last of the formalities that the law requires to create an effective and enforceable trust.

Hopkins, J., “Constitution of trusts – a novel point”, () CLJUK Hudson, A., If you are the original writer of this essay and no longer wish to have the essay published on the UK Essays website then please click on the link below to request removal. Constitution Of Trusts Notes This is a sample of our (approximately) 26 page long Constitution Of Trusts notes, which we sell as part of the Trusts and Equity Notes collection, a 1st package written at Oxford in that contains (approximately) pages of notes across 51 different documents.

Constitution of Express Trusts/UK Law Essay Sample.

Constitution of Express Trusts/UK Law Essay Sample

Constitution is the last of the formalities that the law requires to create an effective and enforceable trust.

The creation of express trusts in English law must involve four elements for the trust to be valid: capacity, certainty, constitution and formality. Capacity refers to the settlor's ability to create a trust in the first place; generally speaking, anyone capable of holding property can create a trust.

There are exceptions for statutory bodies.

Constitution of trusts essay
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