Flashcards
Constitution - Equity and Trusts
Cards in this deck (36)
- 1Milroy v Lord3 ways that legal owner may confer benefit:
1. Outright gift
2. Transfer on trust
3. Self-declaration on trust.
Must do everything that is necessary to make intended disposition. Equity will not perfect disposition.
(Deed) - 2Jones v Lock (1865)Check in his name verbally given to baby - court found he had intended absolute gift not trust therefore £900 cheque could not be transferred to baby
- 3Richards v Delbridge (1874)Endorsement on his lease for grandson. Ineffective. Separate deed should have been used. Intended a gift so couldn't be treated as self-declaration of trust.
- 4Rowe v Prance (1999)Court found requisite intention.
- 5Shah v ShahCourt found requisite intention for constitution.
- 6T. Choithram International S.A. and Others v Lalibai Thakurdas Pagarani and OthersBusinessman oral declaration to make gift to charity. Privy Council
3 points to note:
1. Ct relied on unconscionability
2. Benevolent construction - " I give" can be interpreted as a transfer on trust.
3. He was trustee himself. Not yet transferred into joint names of all trustees but could be seen as manifested intention to do so as one had it. - 7LandMust be registered s. 27 LRA 2002.
- 8SharesS. 1 Stock Transfer Act 1963 - transferor signing a stock transfer form in favour of transferee. Registered in share register of the company.
Title only passes on registration of the transferee as the new shareholder. - 9Chattels (Re Cole)Deed of gift - actual delivery.
+ intention on part of transferor to transfer them. - 10s. 136 LPA 1925Choses in action transferred by writing to the debtor/other party.
Bank accounts are choses in action. - 11MoneyCheques - doesn't transfer until it has clear. If payer dies before cleared death countermands instructions to the bank.
Cheque transferred to third party if endorsed on back of cheque - Bills of Exchange Act 1882. - 12Re RoseTransfers effective in equity once Rose had done everything in his power to vest to transferees. Pending registration Rose held legal title on constructive trust.
1. Correct method of transfer
2. Every effort to vest
3. Transaction is irrevocable - cannot be called back. - 13Mascall v MascallRegistered land. Once all docs executed and stamped and handed to transferee (but before reg at LRA) gift viewed as complete in equity.
Transferor must put the matter beyond their control. - 14Re FryDied before obtaining treasury consent. Ineffective as not beyond their control.
- 15Zeital v KayeCourt of Appeal held that deceased owner of equitable interest in shareholding hadn't done everything to transfer shareholding - not handed over share certificate.
- 16Pennington v WaineNot necessarily essential to show that documents had been sent off.
Ada leaves shares to Harold. Signed stock transfer form. Nothing more done. Court of Appeal disagreed with application of Re Rose and upheld Judge's decision that gift was effective in equity.
Stage reached where it would have been unconscionable for Ada to recall gift.
Reasoning has led to criticism - is an exception to Milroy v Lord but shouldn't be relied on too heavily. - 17Proprietary EstoppelArises where there is an assurance, reliance and detriment so that it would be unconscionable to go back on the assurance.
- 18Curtis v PulbrookPennington v Waine example of proprietary estoppel ( well-established exception to rule that equity will not assist a volunteer)
A bound as she told H he was being gifted shares & H acted to his detriment (cementing promise) by becoming director of the company - 19Strong v Bird(Oral release of debt is ineffective). Bird still owed Strong money on her death BUT he was also executor of estate and would have been paying himself back. Fortuitous vesting. Has obtained legal title in another way.
Three limbs - 1. Immediate gift. (Re Freeland is immediacy test).
2. Intention must continue until the donor's death (Re Gonin)
3. Donee must become executor/administrator of the estate. - 20Re FreelandIntention to make an immediate gift. Must relate to current property. Car which needs to be repaired before it can be given. Court says it is not immediate gift because it was at some point in the future.
- 21Re JamesDonee becomes administrator on intestacy of the donor - Freeland intention to make immediate gift applies.
Criticised as admin just imposed on estate and broken intention of donor. - 22Re GoninDonor had not chosen to make donee administrator of their estate Strong v Bird would have been decided differently (obiter). At one point mother wanted to do X by the time she died she wanted to do Y. Defeating Strong v Bird.
- 23Re Ralli's Will TrustsTrust would be constituted if trust property came into the trustee's hands in any legitimate way.
- 24Re RalliIf trustee is also executor then Strong v Bird will apply - High Court decision.
Doesn't take into account that Trustee and Executor are ring fenced and very separate.
Did not refer to Re Brooks. - 25Re Brooks STProperty could not be moved from T1 to T2 simply because beneficiary had promised to transfer property he might received under T1.
Should have directed trustee of T1 to hold property on terms of T2. - 26Fortuitous VestingFailure to perfect intended transferee's legal title may be cured if they later happen to obtain title through other means.
- 27Donatio Mortis CausaDeath bed gift. Very specific circumstances.
- 28Cain v Moon (DMC requirements)1. Gift made in contemplation of imminent death.
2. Gift is conditional on death.
3. Donor must part with dominion (control) of property by handing it or something that represents title to donee. Indicia of title. - 29Sen v HeadleyTerminally ill man. The house is yours, deeds in a steel box. Keys for box. Court of Appeal held valid donatio mortis causa. If keys of the house then no as they represent possession not ownership.
- 30Birch v Treasury SolicitorBank deposit pass book can be DMC
- 31Re WestonPost office savings book can be DMC.
- 32Re BeaumontChq written by donor to donee is not property but revocable mandate to donor's bank
- 33Re MeadChq payable to donor may be DMC if delivered w/out being endorsed.
- 34King v DubreyCourt of Appeal overturned earlier case authority Vallee v Birchwood (gave deeds in Aug and didn't die until Nov). Reiterating that DMC was only to be upheld if insufficient time to deliver the property through valid inter vivos transfer.
Confine DMC to very tight limits. Must be on deathbed. - 35Zeital v KayeCited Curtis v Pulbrook. Later cases declined to use C v P to overrule Milroy v Lord.
- 36Re StewartSays that you can use the rule in Strong v Bird to perfect the gift under equity.
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- Equity and Trusts Flashcards on Constitution - Equity and Trusts, created by Laura Millward on 06/11/2017.
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