Trustee ship and Fiduciarys

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What is the consequence of a trustee breaching their duty of care and skill?

The trustee is removed from their position

The trustee must apologize to the beneficiary

The trustee is exempt from future duties

The trustee must pay equitable compensation to the trust fund or the beneficiary (correct)

In which case was the onus on the beneficiary to prove both the loss and that it was a consequence of the trustee's breach?

Beloved Wilkes Charity

Nestle v National Westminister Bank (correct)

Londonderry Settlement

Canson Enterprises

What is the test to determine if a trustee's investment decision was reasonable?

Would a reasonable trustee have made the same investment (correct)

Would a reasonable person have made the same decision

Was the investment decision made with the consent of the beneficiary

Was the investment decision in the best interest of the beneficiary

What is the purpose of a trustee's duty to inform beneficiaries under a fixed trust?

To ensure the beneficiary is aware of their interest in the trust Signup and view all the answers

What is the relevance of foreseeability in breach of trust cases?

It is a question mark remaining over its relevance Signup and view all the answers

What is the primary purpose of a constructive trust in situations involving fraud or breach of fiduciary duty?

To ensure the wrongdoer holds assets for the rightful owner's benefit Signup and view all the answers

In the Sinclair Investments case, what was the critical factor in determining whether a constructive trust could be imposed on the profits?

The traceability of the profits to the original misappropriated funds Signup and view all the answers

What is the term for a claim made by a party over misappropriated assets that have been mixed with other funds and used for investment?

Proprietary claim Signup and view all the answers

What is the relationship between a fiduciary and a constructive trust in cases of misappropriated assets?

A fiduciary who misappropriates assets can be made a trustee of those assets, requiring them to hold them for the benefit of the rightful owner Signup and view all the answers

What is the main issue addressed in the Sinclair Investments case?

The circumstances under which a proprietary claim can be made over mixed funds Signup and view all the answers

What is the principle upheld in the Turner v Corney (1841) case?

Trustees must act in good faith and ensure no conflict between personal interest and duty Signup and view all the answers

What is the traditional model of delegation in trusteeship illustrated in a particular case?

The traditional model of delegation in trusteeship Signup and view all the answers

According to the Speight v Gaunt case, what is the standard of care expected of trustees?

The same as that of an ordinary prudent man of business Signup and view all the answers

What is the consequence of a trustee failing to act in the same manner as an ordinary prudent man of business?

Liability for breach of trust Signup and view all the answers

What is the duty of trustees in exercising powers and carrying out other duties?

Duty of care and skill Signup and view all the answers

In which circumstance may a trustee delegate tasks to others?

When the ordinarily prudent man of business would do so Signup and view all the answers

What is the relevance of the Trustee Delegation Act 2000 in the context of trustee duties?

It recognizes the need for trustees to delegate tasks in certain circumstances Signup and view all the answers

What is the expected conduct of a trustee in managing trust property?

In the same manner that an ordinary prudent man of business would conduct his own Signup and view all the answers

What is the core principle of the duty of non-delegation in trusteeship?

Trustees have no right to shift their duty on other persons Signup and view all the answers

What is the implication of a trustee's breach of their duty of care and skill?

The trustee is liable for breach of trust Signup and view all the answers

What is a key issue in the case of Santander UK Plc v RA Legal Solicitors (2014) regarding judicial relief from liability?

Showing the necessary connection between the conduct complained of and the lender's loss Signup and view all the answers

In the case of Bristol and West Building Society v Mothew, what is the primary obligation of a fiduciary?

To maintain single-minded loyalty to the principal Signup and view all the answers

What is the consequence of a fiduciary breaching their duty of loyalty?

The fiduciary is liable for damages for breach of trust Signup and view all the answers

In the context of fiduciary relationships, what is the significance of informed consent?

It is a necessary condition for the fiduciary to act for their own benefit Signup and view all the answers

What is the approach to be avoided in determining whether a trustee has acted reasonably in respect of matters connected with the beneficiary's loss?

Considering each specific complaint separately Signup and view all the answers

What is the principle established in the Re Whitley (1886) case regarding the duty of care of a trustee?

A trustee has to take such care as an ordinary prudent man would take if he were minded to make an investment for the benefit of other people. Signup and view all the answers

What is the consequence of an unauthorized transfer of trust property out of the fund?

The trustee is under an obligation to pay equitable compensation for the loss at the date of judgment. Signup and view all the answers

In which case was the decision made to change the equitable compensation for breach of trust and duty of care and skill breach?

Bristol and West Building Society v Mothew (1988) Signup and view all the answers

What is the uncertainty regarding the breach of trust in the AIB case?

Whether foreseeability, remoteness, mitigation of loss, contributory negligence, and intervening causes are relevant. Signup and view all the answers

What is the purpose of the trustee's obligation to pay equitable compensation for the loss?

To compensate the beneficiary for the loss. Signup and view all the answers

What is the primary reason for distinguishing between equitable compensation and disgorgement in cases of fiduciary breach?

To deter fiduciaries from engaging in secret profit-making activities Signup and view all the answers

In which case was a constructive trust not imposed, despite the defendant's breach of fiduciary duty?

Lister v Stubbs Signup and view all the answers

What is the consequence of a fiduciary's secret profit-making activities, despite a lack of dishonesty?

The fiduciary is liable for disgorgement of all secret profits Signup and view all the answers

What is the purpose of imposing a constructive trust in cases of fiduciary breach?

To provide an equitable remedy for the principal's benefit Signup and view all the answers

What is the underlying principle behind the 'but for' test in equitable compensation?

The difficulty in proving losses incurred due to the fiduciary's breach Signup and view all the answers

In what circumstances does the liability of a fiduciary to account for a profit arise?

If the fiduciary has made a profit in a fiduciary position Signup and view all the answers

What is the key difference between a trustee and a fiduciary?

A trustee is specifically appointed to manage assets, while a fiduciary is a broader term that encompasses various relationships of trust Signup and view all the answers

In which type of relationship is a fiduciary obligated to act in the best interest of the other party?

Relationship of trust and confidence Signup and view all the answers

What is the core principle behind the rule of equity in fiduciary cases?

That those who profit from a fiduciary position must account for that profit Signup and view all the answers

Who can be considered a fiduciary, besides a trustee?

Financial advisors, lawyers, guardians, and corporate officers, among others Signup and view all the answers