15 Questions
According to the text, who is considered a volunteer under a trust unless they have provided valuable consideration or are within the scope of the marriage consideration?
Only the husband, wife, and issue of the marriage
What is meant by 'marriage consideration' according to the text?
The special rights and privileges granted to the husband, wife, and issue of the marriage
What is the main importance of knowing whether or not a trust has been completely constituted according to the text?
Enforcing the trust by a beneficiary who is a volunteer
According to the text, a beneficiary who has provided valuable consideration can enforce a trust even if it has not been completely constituted. True or False?
True
According to the text, a volunteer beneficiary can enforce a trust even if it has not been completely constituted. True or False?
False
According to the text, if a beneficiary has provided consideration, they can compel their trustee to bring an action at law for damages for breach of the contract or covenant to create a trust. True or False?
True
According to the text, a beneficiary who is a volunteer can enforce a trust even if it has not been completely constituted. True or False?
False
According to the text, what is the common law's view on consideration and the formality of a deed?
Consideration and the formality of a deed are both required.
According to the text, can volunteers compel trustees to take proceedings for damages?
No, volunteers cannot compel trustees to take proceedings for damages.
According to the text, what happens if the settlor has transferred property to trustees in compliance with an unenforceable covenant to settle the same in favor of volunteers?
The property must be held by the trustees on the declared trusts.
According to the text, what was the outcome of the case Re Ralli's Will Trusts?
The court held for the plaintiff and the share of the residue should be paid over to the plaintiff as trustee of the marriage settlement.
According to the Contracts (Rights of Third Parties) Act 1999, a person who is not a party to a contract may enforce a term of the contract if the term purports to confer a benefit on them. However, there are certain conditions that must be met for the third party to enforce the term. Which of the following conditions is NOT required for a third party to enforce a term of the contract?
The third party must be in existence when the contract is entered into.
Under the Contracts (Rights of Third Parties) Act 1999, a third party who is entitled to enforce a term of a contract has the same remedies as if they were a party to the contract. However, there is one remedy that a third-party volunteer beneficiary is still unable to obtain. What is that remedy?
Specific performance
The Contracts (Rights of Third Parties) Act 1999 does not apply to contracts entered into before a certain date. When did the Act come into force?
11 May 2000
According to the text, the Contracts (Rights of Third Parties) Act 1999 has modified the law regarding third-party beneficiaries. How has the Act affected the law?
It has expanded the rights of third-party beneficiaries.
Study Notes
Enforcement of Trusts by Volunteer Beneficiaries
- A beneficiary under a trust is considered a volunteer unless they have provided valuable consideration or are within the scope of the marriage consideration.
- Marriage is considered the most valuable consideration, and a trust made in consideration of marriage is regarded as made for value.
- Only the husband, wife, and issue of the marriage are within the scope of the marriage consideration.
- Knowing whether a trust has been completely constituted is important for the enforcement of the trust by a volunteer beneficiary.
- If a beneficiary has provided valuable consideration, they can enforce the trust even if it has not been completely constituted.
- A beneficiary who is not a volunteer can enforce both completely and incompletely constituted trusts.
- They can compel their trustee to bring an action for damages or enforce the trust through specific performance.
- However, a beneficiary who has provided consideration can only compel their trustee to exercise their remedy at law if the contract or covenant is not appropriate for specific performance.
- If a trust is not completely constituted, a volunteer beneficiary cannot gain assistance from a court of equity to enforce the trust.
- The fact that the obligation is contained in a deed does not make a difference in equity.
- Trustees cannot be compelled by volunteers to take legal action for damages, and the court may direct them not to take any steps to enforce the covenant.
- A volunteer beneficiary who is the covenantee can bring an action at common law on the covenant, but cannot obtain the equitable remedy of specific performance.
Test your knowledge on the enforcement of trusts by volunteer beneficiaries with this quiz. Learn about valuable consideration, completely constituted trusts, specific performance, and more.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
