Equity & Trusts Introduction Flashcards

What are the 'three certainties' required for a valid express trust?

Answer: Certainty of intention, certainty of subject matter, and certainty of objects

For a valid express trust, the three certainties are required (Knight v Knight [1840]): (1) certainty of intention — clear intention to create a trust; (2) certainty of subject matter — the trust property must be identifiable; (3) certainty of objects — the beneficiaries must be ascertainable.

What formalities are required for the creation of an express trust of land?

Answer: The trust must be evidenced in signed writing under s.53(1)(b) Law of Property Act 1925

Under s.53(1)(b) LPA 1925, a declaration of trust respecting any land or any interest therein must be manifested and proved by some writing signed by the person able to declare the trust. Writing is required as evidence, not necessarily for creation.

What is a 'resulting trust'?

Answer: A trust that arises by operation of law, returning the beneficial interest to the settlor where the express trust fails or the property is gratuitously transferred

A resulting trust arises by operation of law, returning the beneficial interest to the person who provided the property. This occurs where an express trust fails (automatic resulting trust) or where there is a gratuitous transfer or purchase in another's name (presumed resulting trust).

What is a 'constructive trust'?

Answer: A trust imposed by law in circumstances where it would be unconscionable for the legal owner to deny another's beneficial interest

A constructive trust is imposed by equity as a matter of law where the legal owner of property cannot in conscience deny another's beneficial interest, such as where there has been a common intention to share beneficial ownership and the claimant has acted to their detriment.

What is the 'rule in Strong v Bird [1874]'?

Answer: An imperfect gift is completed if the donor appoints the donee as executor and intended to make an immediate gift

The rule in Strong v Bird provides that an incomplete gift (one not properly perfected inter vivos) is completed where the donor later appoints the donee as executor and the intention to make an immediate gift continued until death.

What is the 'unconscionability' principle in equity?

Answer: Equity intervenes to prevent a party from unconscionably asserting strict legal rights to the detriment of another who has relied on a different state of affairs

Unconscionability is a core equitable concept — equity intervenes where it would be unconscionable (against good conscience) for a party to assert strict legal rights. It underpins doctrines such as promissory estoppel, constructive trusts, and proprietary estoppel.