FE-1 Equity 3

Question 1

A constructive trust differs from an express trust in that it arises in which of the following ways?

Accepted Answer

By operation of law whenever equity regards it as unconscionable for the legal owner to deny another's beneficial interest

Answer

By the express declaration of a settlor with the required three certainties

Answer

By statute in all cases involving land registration

Answer

By the unilateral act of a trustee accepting obligations

Question 2

The 'no conflict' rule in Irish fiduciary law prohibits a fiduciary from doing what without full disclosure and consent?

Accepted Answer

Placing themselves in a position where their personal interests or a duty to another conflicts with their duty to the beneficiary

Answer

Taking any investment risk with trust funds

Answer

Delegating trust functions to a co-trustee

Answer

Accepting professional fees for services rendered to the trust

Question 3

Under the Charities Act 2009 (Ireland), which of the following is a recognised charitable purpose?

Accepted Answer

Advancement of education for the public benefit

Answer

Advancement of the settlor's private financial interests

Answer

Promotion of a political party's electoral prospects

Answer

Benefiting a closed class of private family members

Question 4

The cy-près doctrine in Irish charity law applies in which situation?

Accepted Answer

When a charitable purpose becomes impossible or impractical, allowing the court to redirect funds to a similar purpose

Answer

When a charity has surplus income at its year-end

Answer

When a trustee dies leaving the trust without an administrator

Answer

When a charitable trust is created without a proper objects clause

Question 5

The standard for 'dishonest assistance' liability in a breach of fiduciary duty, as set out in Royal Brunei Airlines v Tan [1995], requires that the assisting third party acted in what manner?

Accepted Answer

Dishonestly by the standards of honest and reasonable people

Answer

With actual knowledge of the fiduciary relationship

Answer

With reckless indifference to the interests of beneficiaries

Answer

Knowingly and with the primary purpose of causing loss

Question 6

Under the rule in Re Denley's Trust Deed [1969], a non-charitable purpose trust may be valid where it directly benefits whom?

Accepted Answer

Identifiable individuals who have locus standi to apply to court to enforce the trust

Answer

Unborn future generations with no living representatives

Answer

The public at large without any identified beneficiaries

Answer

The settlor themselves as the sole beneficiary

Question 7

In Irish equity law, the 'clean hands' maxim operates to deny equitable relief to a plaintiff who has done what?

Accepted Answer

Acted unconscionably or in bad faith in relation to the very matter in respect of which they seek relief

Answer

Delayed bringing their claim beyond the limitation period

Answer

Failed to mitigate their own losses following the defendant's wrong

Answer

Commenced proceedings without first attempting mediation