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Flashcards in Defective Transfers Deck (25)
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1
Q

Three Certainties

A

Intention
Subject
Object

2
Q

Re Beaney

A

Necessary mental capacity increases with value/size of gift

3
Q

‘Bulk of’ is unclear for certainty of subject

A

Palmer v Simmonds

4
Q

Subject matter is certain if the settlor provides a workable formula

A

Re Golay

5
Q

For certainty of subject, must segregate tangible items of trust property from like items

A

Re London Wine Company

6
Q

For certainty of subject, need not segregate intangible items if items are indistinguishable, ie identical shares

A

Hunter v Moss

7
Q

For a trust, intention is ascertained by words or conduct

A

Paul v Constance

8
Q

Beneficiary Principle

A

There must be identifiable human beneficiaries who can enforce the trust

9
Q

Rule against perpetuity for a discretionary trust

A

Rule against remoteness of vesting

Max 125 years

10
Q

Rule against perpetuity for non-charitable purpose trusts

A

Rule against alienability

Limited to 21 years, or allow trustees to spend all trust capital on the purpose

11
Q

Formalities required for declaration of land transferred for trust

A

Evidenced in writing, signed by the transferor

12
Q

Formalities for declaration for a trust of items other than land

A

None needed (writing desirable)

13
Q

Formalities for transfer of chattels

A
Physical delivery (Re Cole); or
Deed
14
Q

Jaffa v Taylor Gallery

A

If physical delivery is impossible, the item may still be considered transferred

15
Q

Formalities for transfer of shares

A
  1. Complete and sign stock transfer form (STF)
  2. Send STF and share certificate to transferee
  3. Transferee must send documents to company to register new owner
16
Q

Formalities for transfer of land

A

Must be done by deed

s. 52(1) LPA - need to send deed to Land Registry and notify as new legal owner
s. 1 LP(MP)A - deed in writing, signed, witnessed and delivered as a deed

17
Q

Formalities for transfer of equitable interests

A

s.53(1)(c) LPA

Can be done by:
Assigning equitable interest to the other person directly; or
Beneficiary can direct trustee from now on to hold trust property for other person

18
Q

Grey v IRC

A

Transfer of equitable interests must be declared in writing

It must be signed by person disposing of the interest/an authorised agent or in will

19
Q

Milroy v Lord

A

General rule: No equity to protect an imperfect gift; equity will not benefit a volunteer; equity will not construe a trust from an invalid gift

20
Q

Strong v Bird

A

On the death of a donor, donee can claim legal title if:

a. Transfer fails due to not satisfying formalities;
b. Intention to make immediate gift by donor;
c. Intention continues until death; and
d. Donee becomes executor/PR/administrator of donor

21
Q

Re Rose

A

A gift is complete in equity if the donor has done everything they can

22
Q

Pennington v Waine

A

Extends Re Rose principle to gifts, even when they don’t meet every effort threshold.
Must be unconscionable to invalidate disposition

23
Q

Cholthram International v Pagarani

A

If transfer is defective, equity will not strive officiously to defeat a gift. Rather, may interpret gift as a trust if the settlor is a trustee.

24
Q

Exception for transfer of equitable interests

Vandervell v IRC

A

If interest is under a bare trust, and beneficiary directs trustees to transfer equitable state with intention of transferring legal estate too.
s.53(1)(c) LPA will not apply

25
Q

Vandervell v IRC

A

Oral instruction will be sufficient to transfer equitable interests when transferring legal estate too