30 Questions
What is the main focus of principles of equity?
Achieving justice not available at common law
What is the underlying intention of the principles of equity?
To achieve justice beyond common law
Which term best describes the nature of equity principles?
Flexible and adaptable
What do the maxims of equity serve as?
Statements embodying core equity principles
What does the maxim 'Delay defeats equity' imply?
Unreasonable delays can hinder the application of equity
What does the maxim 'Equity will not assist a volunteer' signify?
'Volunteer' refers to someone trying to take advantage without justification
What is the primary focus of equity in the context of agreements?
The spirit and desired outcome of the agreement
In the context of a trust, who has the legal ownership and manages the property for the benefit of another?
Trustee
What type of interest does a beneficiary hold in a trust?
Equitable interest
Which of the following is NOT considered a type of property?
Intellectual property
Who is responsible for enforcing the trust obligations to ensure the beneficiary receives the benefits?
Beneficiary
Which role is responsible for creating a trust that becomes effective upon their death?
Testator
What type of trust involves a trustee holding assets for the benefit of members of a club or association?
Private clubs and associations
What is the main purpose of placing assets in a trust for the purpose of collective investment schemes?
To avoid creditors taking the assets
Which of the following is not a category of people on whom fiduciary duties are imposed?
Shareholders
What is the basis for the legal owner's conscience requiring him to carry out the purposes for which the property was vested in him in the case of a trust?
Express trust
What is the main purpose of a pension trust?
To ensure secure pensions
What is the basis for the legal owner's conscience requiring him to carry out the purposes for which the property was vested in him in the case of a constructive trust?
Unconscionable conduct
What is the significance of a beneficiary's interest in a trust?
It can be enforced against the trustee and successors in title.
What type of third party will not be bound by a trust?
A bona fide purchaser for value who has no notice of the beneficiaries’ rights.
What are the requirements for a purchaser to be considered 'equity’s darling'?
They must act in good faith, give full valuable consideration, and have no knowledge of the existence of the trust.
What are the two ways for a settlor to create an express trust?
By declaring themselves as the trustee and by transferring property to trustees on trust.
What happens when the owner of an asset declares that they hold the asset for the benefit of someone else?
They create an express trust.
What happens when a settlor transfers property to trustees on trust?
They transfer legal title to the asset to trustees.
What is the nature of the court order in a specific performance remedy?
The court compels the defendant to comply with the terms of a contract.
Which of the following is not a type of injunction?
Damages injunction
What must the claimant seeking rectification evidence?
The parties’ actual intention and that the executed document does not accurately reflect that.
Which remedy does not require a valid and enforceable contract?
Rectification
Which of the following is not a requirement for a court to order specific performance?
The court usually orders specific performances for working for someone.
Which of the following is a true statement about equitable remedies?
Equitable remedies are granted at the discretion of the court.
Learn about the fundamental principles of Equity, a body of rules that evolved from those applied by the court of chancery, focusing on achieving justice that may not be available through common law. Explore how equity operates on the conscience of the legal interest owner.
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