LAW 3013

REVISION LECTURE 2014-2015

WARNING
I will not be able to cover all issues which are likely to appear in the May
examination. Just because an issue is not covered, does not mean that it will
not be on the examination paper. Similarly, just because it is covered does not
mean it will be in the examination in exactly the way that the issue is posed
here. I am covering some issues that will not be on the May examination but
will be on the August examination.
DONT ask me what issues will be mixed together. I have heard this question
hundreds of times posed in dozens of ways! You should be guided by
Workshop questions
Mock exam questions
Seminar questions
Past exam questions
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History of Trusts and Maxims

Explain the difference between a common law principle and an

equitable maxim.
Name 5 defects of the common law courts that led to the
development of the Court of Chancery.
What was Lord Seldons criticism of the jurisdiction of Chancery?
Why and how did the jurisdiction of the Court of Chancery
develop?
What was the effect of the Judicature Acts 1873-5?
How did the trust develop from the medieval use?

3 Certainties
X won money in a lottery. He told his girlfriend this money is as
much yours as mine. What is the issue? What is the case?
What is the relevant Equitable Maxim?
Xs will stated I leave this money to my wife in the hope and
expectation that my wife will use it to educate our
grandchildren. What is the issue? Relevant cases?

Xs will stated that his trustees should pay a some of the

income from a trust set up by the will to Y. What is the issue?
Cases?

Xs will stated that his trustees should pay the residue of the
estate to Y. Is there a legal problem? Issue? Cases?
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Continued.
Explain the case of Re Kayford in liquidation (1975) and
how it relates to the issue of intent? Did the Re Farepack
Food and Gifts Ltd [2006] and the Re Challoner Club Ltd
(in Liquidation) (1997) cases distinguish Re Kayford?
Explain the result in Boyce v Boyce.
What is the difference between a fixed trust and a
discretionary trust?
What is the difference between a power and a trust?

Explain a fiduciary power?

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More

Xs will said I leave 200,000 to my trustees to make in their

absolute discretion grants to the employees or former
employees of my company, XYZ & Co., or their relatives.

(a) What is the legal issue?

(b) What is the main relevant case?
(c) What test did it hold was relevant to determine the legal
issue?
(d) Is the problem of administrative unworkability relevant?
Can a power be administratively unworkable?
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Form, Constitution
X orally declared that he held the lease of his
house on trust for Y. Are formality requirements
relevant? What are they?
Can an interest under a family trust be assigned
orally?
X orally told his solicitor to hold the proceeds of
his life insurance policy on trust for Xs mistress
and her children. Are formality requirements
relevant? If so, What are they? Relevant case?
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Constitution
What is meant by the constitution of a trust?
What is a trust that is not constituted called?
Does the issue of constitution of a trust arise when the
settlor declares herself a trustee of property she already
owns absolutely (i.e. legally and beneficially)?
What was the rule in Milroy v Lord [1862]?
How can T Choithram International SA v Lalibai
Thakurdas Pagarani & Ors [2001] be viewed as a
departure from the rule in Milroy v Lord?
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Continued.
Explain Re Rose and compare Re Fry
What is a volunteer?
Explain the Rule That Equity Will Not Assist A
Volunteer
What is considered consideration in Equity?
Equity recognises marriage consideration .
Explain.
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Moregeneral info only

Explain Attn. Gen v Jacobs-Smith [1895]
What effect does the Contracts (Rights of Third Parties) Act
1999 have on the position of volunteers?
Explain Pullen v Koe [1913]; Re Plumptres Marriage
Settlement [1910] ;Re Pryce [1917]; Re Kays Settlement
[1939]; and Re Cooks Settlement Trusts [1965];
Explain the exception in Fletcher v Fletcher
Explain the exception of the rule in Strong v Bird [1874]
What is a Donatio Mortis Causa (DMC);
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Donatio Mortis Causa (DMC)

What is a DMC?
What are the 3 requirements?
What kind of property can be the subject of a DMC?
What kinds of things can fulfill the delivery
requirement?
Cases?
See MOCK EXAM
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Investment, etc.

What is investment for?

How does section 1 of the TA 2000 affect the duty to invest?
How must trustees act in relation to the interests of various
beneficiaries of different ages?
Can trustees invest in any type of investment under TA
2000?
What are the specific investment criteria under section

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Continued.
Trustees are considering investing in commodities futures? What factors
are relevant to their decision? Would they be expected to obtain advice?
If so, whose advice?
Trustees hold a controlling interest in a private limited company that is
being badly managed. How should they approach this situation?
Xs trustees are being pressed by a Y, a beneficiary, to invest in real
estate in Dubai. Can they do this?
Y and Z are beneficiaries of a trust set up in the will of X. Y disapproves of
the trust holding shares in palm oil suppliers because of the destruction of
the habitats of orangutuns who live in palm trees. Y persuades the
trustees to sell the shares. They invest in alternative shares and make a
loss. What is the issue? Can Z do anything? Will trustees be liable? Do
they have a defence?
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Maintenance s 31 TA 25
What is maintenance?
(a) Who can get maintenance from trust funds?
What are the conditions that must be present?
(b) Who can decide to give maintenance from funds
held in trust?
(c) What factors are relevant to the decision about
whether to give maintenance?

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Advancement s.32 TA 25

What is advancement?

(a) What is the relevant statutory authority?

(b) When must trustees get permission from one
beneficiary to award advancement to another
beneficiary?
(c) What value of trust assets can be advanced?

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Accessory liability and constructive trust

What are the two forms of accessory liability for breach of trust?
How does this liability relate to constructive trust?
Who is a stranger?
What test for liability was adopted in the RBA v Tan case?
How was this changed or explained in Twinsectra v Yardley?
What happened in the Brinks case?
X is in partnership with Y. Y has dishonestly assisted in a breach of
trust. Is X potentially liable? What is the case?
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Resulting trust
What kind of trust is a RT?
What two types of RT have been identified or proposed?
What is a purchase money resulting trust?
What is the presumption of resulting trust and how is it
rebutted?
Xs will leaves an income from shares to Y for Ys life Y
dies. What happens and why?
Explain the Quistclose case.
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Tracing general information only

What is the difference between common law tracing

and tracing in equity?
What is the precondition for tracing in equity?
Is it possible to trace into trust funds in the hands of a
volunteer?
Is it possible to trace into an overdrawn bank account?
Is it possible to trace into expenditure on a holiday?
What happens when money taken makes a profit?
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Private Purpose Trusts

Explain the beneficiary principle.
What are the exceptions to the rule that private
purpose trusts are invalid?
When money or property is given as a gift to an
unincorporated association, what are the various
ways that such a gift can be construed? What
trust law problems might there be with such a gift?
SEE MOCK EXAM
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Charities and cy pres- covered

briefly because recently taught
What are the advantages of charitable status?
What are the categories of charity?
What is the public benefit requirement?
What is the exclusivity requirement?
Summarize the problem of political activities by
charitable organizations.
Summarize the problem with the definition of religion in
charity law.
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