Equity and Trust Law - Lectures 1 & 2

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Questions and Answers

What principle governs that the substance of a situation matters more than its formalities in equity?

Equity is equality

Delay defeats equity

Equity looks to substance, not form (correct)

He who comes to equity must come with clean hands

What is the main purpose of a Mareva injunction?

To prevent the dissipation of assets before judgment (correct)

To provide immediate monetary compensation

To compel the sale of valuable properties

To allow search and seizure of evidence

Which case is recognized for establishing modern principles related to interlocutory injunctions?

Mareva Compania Naviera v International Bulkcarriers (1980)

American Cyanamid v Ethicon (1975) (correct)

Penn v Lord Baltimore (1750)

Chappell v Times Newspapers (1975)

Which equitable maxim is encapsulated in the idea that equity will not act without purpose?

Equity will not act in vain Signup and view all the answers

In which case was specific performance mandated for the transaction involving rare china jars?

Falcke v Gray (1859) Signup and view all the answers

What is primarily addressed by proprietary estoppel?

Unconscionable denial of rights over land Signup and view all the answers

Which of the following is NOT a requirement for proprietary estoppel?

Formal writing Signup and view all the answers

Which case established the key principles of proprietary estoppel?

Taylor Fashions v Liverpool Victoria (1982) Signup and view all the answers

What is the purpose of a secret trust?

To bypass public disclosure of beneficiaries Signup and view all the answers

Which maxim prevents statutory rules from being used for fraudulent purposes?

Equity will not permit a statute to be used as an instrument of fraud Signup and view all the answers

Which case involved an oral trust established by a countess?

Rochefoucauld v Boustead (1897) Signup and view all the answers

Which case involved an oral promise of inheritance after unpaid labor on a farm?

Thorner v Major (2009) Signup and view all the answers

What law governs the formal requirements for wills?

Wills Act (1837) Signup and view all the answers

Which of the following is NOT a type of implied trust?

Express trust Signup and view all the answers

What distinguishes a charitable trust from a private trust?

Charitable trusts benefit the public, while private trusts benefit specific individuals Signup and view all the answers

Which case confirmed equitable interest in trust property rights?

Hussey v Palmer Signup and view all the answers

Which legislation governs the formal requirements for trusts of land?

Law of Property Act (1925) Signup and view all the answers

What is a 'power of appointment'?

The authority given to someone to distribute property Signup and view all the answers

Which type of trust allows trustees to withhold some property for future beneficiaries?

Non-exhaustive discretionary trust Signup and view all the answers

Which certainty requires the trust property to be identifiable?

Certainty of subject matter Signup and view all the answers

What is required for the conveyance of land under the Law of Property Act (1925)?

A signed, sealed, and delivered deed Signup and view all the answers

What is required for a valid half-secret trust?

Clear identification of the trustee and beneficiary Signup and view all the answers

What is a deathbed gift (donatio mortis causa)?

A verbal gift made on the donor’s deathbed Signup and view all the answers

What is the primary characteristic of a resulting trust?

Property returns to the settlor or their estate Signup and view all the answers

Which of the following is a presumed resulting trust?

Where a party contributes to the purchase price but is not listed as the owner Signup and view all the answers

Which case involved a resulting trust due to a surplus fund for a public purpose?

Re Gillingham Bus Disaster Fund (1958) Signup and view all the answers

What did the Equality Act 2010 abolish concerning resulting trusts?

Presumption of advancement from husbands to wives Signup and view all the answers

What does equity primarily aim to achieve in the legal system?

Fairness and justice Signup and view all the answers

What legislation governs charitable trusts in England and Wales?

Charities Act (2011) Signup and view all the answers

Which of the following is NOT one of the traditional categories of charitable trusts?

Promotion of the arts Signup and view all the answers

Who historically handled equity cases?

The Chancellor Signup and view all the answers

Which case established that equity prevails over common law in conflicts?

Earl of Oxford Case (1615) Signup and view all the answers

Which act unified equity and common law under one court system?

Judicature Act (1873-1875) Signup and view all the answers

What does the maxim ‘he who comes to equity must come with clean hands’ imply?

A claimant must not have acted unfairly or improperly Signup and view all the answers

Which maxim reflects equity's focus on intent over formalities?

Equity looks to substance, not form Signup and view all the answers

What is the primary purpose of a trust?

To manage property through a settlor, trustee, and beneficiary relationship Signup and view all the answers

What does 'equity follows the law' ensure?

Equity does not override common law unnecessarily Signup and view all the answers

Which of the following is a requirement for a trust to qualify as charitable?

Public benefit Signup and view all the answers

What is the fundamental duty of a fiduciary?

To manage property with utmost loyalty to the beneficiary Signup and view all the answers

Which case involved a breach of fiduciary duty regarding unauthorized profits?

Keech v Sandford (1726) Signup and view all the answers

What is the purpose of a constructive trust?

To prevent unjust enrichment Signup and view all the answers

Which case involved a constructive trust due to joint contributions to property ownership?

Hussey v Palmer (1972) Signup and view all the answers

Which of the following is NOT a fiduciary relationship?

Employer and employee Signup and view all the answers

What is the key test for establishing a constructive trust?

Proof of unjust enrichment or reliance Signup and view all the answers

What remedies are available for breach of fiduciary duty?

Rescission, account of profits, and compensation Signup and view all the answers

Study Notes

Equity and Trust Law - Lecture 1

Equity's Aim: Equity aims to achieve fairness and justice in judgments, rather than just certainty.
Historical Handling of Equity Cases: Equity cases were historically handled by the Chancellor, not common law judges.
Equity's Precedence: Earl of Oxford Case (1615) established that equity prevails over common law in conflicts.
Judicature Act: The Judicature Act (1873-1875) unified equity and common law under one court system.
Equity Acts in Personam: The maxim "equity acts in personam" means equity focuses on the person, not just the property.

Equity and Trust Law - Lecture 2

Maxim: Claimant Must Not Act Unfairly: A claimant must not have acted unfairly or improperly.
Maxim: Delay Defeats Equity: Delay in seeking relief can be a bar to equity's intervention.
Maxim: Clean Hands: A claimant must come to equity with clean hands, meaning not being implicated in wrongdoing.
Maxim: Equity Follows the Law: Equity does not override common law unnecessarily, instead focusing on fairness, while also preserving the rules of common law.
Unreasonable Delay Defeating Equity Claims: Cases like Comiskey v Bowring-Hanbury illustrate how unreasonable delays can defeat equity claims.

Equity and Trust Law - Lecture 3

Trust Primary Purpose: The primary purpose of a trust is to manage property through a settlor, trustee, and beneficiary relationship to avoid taxation.
Implied Trust Types: Resulting trusts and constructive trusts are implied trusts.
Charitable vs. Private Trusts: Charitable trusts benefit the public, while private trusts benefit specific individuals.
Equitable Interest in Trust Property: Cases like Walsh v Lonsdale confirm equitable interest in trust property rights.
Trust Legislation: The Law of Property Act (1925) governs the formal requirements for trusts of land.

Equity and Trust Law - Lecture 4

Power of Appointment: This is the authority to distribute property to others.
Three Certainties: The three certainties required for a valid trust are words, subject matter, and object.
Trusts and Intentions: Trusts are valid if the settlor's intentions are clear.
Charitable Trusts: Cases like Re Coulthurst (1951) have clarified requirements of charitable trust.
Property, Intention and Purpose: These are crucial elements for a valid trust.

Equity and Trust Law - Lecture 5

Conveyance of Land: A signed, sealed, and delivered deeds is required for the conveyance of land.
Sub-Trust Definition: A sub-trust occurs when a beneficiary holds property on trust for another beneficiary.
Equitable Maxim Preventing Fraud: "Equity looks to substance, not form" prevents using statutory rules to commit fraud.
Oral Trusts of Shares: Cases like Rochefoucauld v Boustead established that oral trusts for shares are valid provided there's a clear act/intention.
Legislation Governing Formal Trusts: The Judicature Act (1873-1875), Statute of Frauds (1677), and Law of Property Act (1925) cover trusts of property, especially land.

Equity and Trust Law - Lecture 6

Proprietary Estoppel Purpose: Proprietary estoppel primarily addresses situations where the unconscionable denial of rights occurs over land.
Requirements for Proprietary Estoppel: Representation, Reliance, and Detriment are key requirements.
Cases Establishing Key Principles: Taylor Fashions v Liverpool Victoria (1982) and Thorner v Major (2009) established and highlighted key principles of proprietary estoppel.

Equity and Trust Law - Lecture 7

Wills Legislation: Wills are governed by the Wills Act (1837).
Secret Trusts: Secret trusts avoid probate requirements and ensure the trust isn't made public, ensuring intentions are followed.
Deathbed Gifts: Are conditional gifts made on death.
Communication and Execution: Communication before a will’s execution is critical for secret trusts cases such as Rochefoucauld v Boustead (1897).
Validity of Wills Requires Clear Intent: Trusts need clear intention to be valid.

Equity and Trust Law - Lecture 8

Resulting Trusts: Resulting trusts occur when property's ownership defaults back to the settlor since the trust purpose is not achieved.
Presumed Resulting Trusts: These trusts occur when property is held in a way that shows an unclear intention.
Resulting Trust and Charitable Purposes: Cases show examples illustrating what to look out for regarding resulting trusts and charitable purposes.

Equity and Trust Law - Lecture 9

Charitable Trusts Legislation: Charitable trusts, in England and Wales are governed by the Charities Act (2011).
Categories of Charitable Trusts: Common categories include: relief of poverty, advancement of education, and promotion of religion.
Charitable Purpose Criteria: Purpose needs to be for benefit of the community or public.
Case Examples Illustrating Charitability: Relevant cases, such as Re Niyazi and Re Sanders' Will Trust, illustrate different aspects of charitable trust requirements.

Equity and Trust Law - Lecture 10

Fiduciary Duties: Fiduciaries have a duty to act in their beneficiary's best interests.
Breach of Fiduciary Duties: Breaches may lead to rescission, compensation, or account of profits. (Remedies)
Constructive Trusts: Constructive trusts arise due to unjust enrichment, a common remedy.
Trust Creation Certainty: Cases demonstrate circumstances for clear trust creation (e.g., Bannister v Bannister (1948) illustrates trust creation without formalities in equity.)

Equity and Trust Law - Lecture 11

Constructive Trusts: Constructive trusts prevent unjust enrichment and often involve situations where parties' actions or agreements implied/create the trust/obligation.
Cases Illustrating Constructive Trust Requirements: Cases like Hussey v Palmer (1972) and Rochefoucauld v Boustead (1897) demonstrate circumstances where constructive trusts could be applicable.
Fiduciary Principle: Cases involving fiduciary relationships and breaches are covered.

Equity and Trust Law - Lecture 12

Equitable Remedies: These remedies focus on ordering a party to fulfill/stop a specific act rather than on providing monetary compensation (e.g., freezing injunctions, specific performance).
Equitable Remedies and Property: Equitable remedies for certain actions/misconduct affecting properties are mentioned.
Purpose of Freezing Injunctions: Freezing injunctions prevent a party from dissipating assets before a judgment is issued.
Cases Providing Examples of Equitable Remedies: Cases like Chappell v Times Newspapers (1975) illustrate examples of equitable relief.

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Explore the fundamental principles of Equity and Trust Law in these comprehensive lectures. Learn about the historical context of equity, key maxims, and significant legislative acts that shaped its application in legal practice. This quiz covers both the aims of equity and the important concepts that govern its operations.