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Flashcards in Property Law - Beneficiary Principle Deck (121):
1

What is the requirement for property rights per Lord Wilberforce in National Provincial Bank v Ainsworth?

Definable, identifiable by 3rd parties, capable in its nature of assumption by 3rd parties and some degree of permanence/stability

2

Re Andrew's Trust general

Clergyman 7 children education, all done

3

Who gave the requirements of property rights?

Lord Wilberforce in National Provincial Bank v Ainsworth

4

Why is the primary/secondary trust framework in Quistclose problematic?

Primary appears to be a private purpose trust

5

In Re Price general

Gift to Lodge Society

6

What suggests that the rule in Saunders is not a vital component of the trust?

Other jurisdictions do just fine without it

7

Barclays Bank v Quistclose general

Loan to pay shareholder dividends

8

What are the two possible interpretations of Re Denley's?

Supports human beneficiary principe; supports the enforcer principle

9

What case gave that the four cases of trusts of imperfect obligation should not be extended?

Re Endacott

10

Petingall v Petingall

Allow trusts for maintenance of animals under trusts of imperfect obligation

11

In what case did the court find that a legatee in default of application for a purpose could complain if the gift is not so applied?

Re Thompson

12

What are the four cases of trusts of imperfect obligation?

Trusts for maintenance of certain animals, for the erection/maintenance of graves/monuments, for the saying of masses in private and for the promotion and furtherance of fox-hunting

13

What does Matthews conclude from the fact that a right-holder can complain without an interest in NCPs?

Turns the trust into a contract

14

What are two arguments for the enforcer principle?

Charitable trusts already conform to it and other jurisdictions allow them, which English courts have to apply under the Recognition of Trusts Act 1987

15

What does matthews put the exception of charitable trusts down to?

Historical circumstance - exception for public benefit and therefore, in a way, a matter of public law

16

What 4 reasons does Matthews give for why Saunders actually matters?

Illustrates B principle and executive decision-making; reflects the need for trusts for PERSONS; supports certainty of objects, and; ensure property is, in theory, always marketable

17

Twinsectra v Yardley general

Money to buy property

18

Although Saunders still applies when there is more than one beneficiary, what becomes difficult?

Achieving consensus on winding up trust

19

Which case attempts to explain the judgment in Quistclose in a way that avoids any private purpose trust?

Twinsectra v Yardley

20

How can the decision in Re Abbott be explained?

Donors were beneficiaries under RT, giving a power for maintenance

21

What judge in Twinsectra attempted to explain the decision in Quistclose?

Lord Millett

22

What is the 'right-duty' relationship according to Matthews?

Duties are annexed to the property but owed to B

23

What case Allow trusts for erection/maintenance of graves/monuments?

Re Hooper

24

Who was entitled to the property in Re Osoba and why?

Daughter absolutely entitled because mother and widow had died

25

In Re Price judgment

Gift needed to be absolute gift for individuals - not an endowment if society is perpetual because class is unascertainable and imposes trust on members

26

S.19 and 20 TOLATA

B can force T to retire and replace him

27

When would English trust law require a fundamental shift under the enforcer principle?

If the base of trust law relies on the absolute rights of B, as the enforcer principle does not require a duty to be owed to any B

28

What two overarching issues need to be considered when asking if we should permit an enforcer principle?

policy matters and conceptual nature of the principle

29

What do executors under a trust of imperfect obligation have?

A power to use the money for the particular purpose

30

Why is Matthews concerned about the future of the B principle?

Current Chancery members of CoA and HoL are nearly last generation of full-time equity practitioners

31

What duty does Matthews find to be key to the trust?

'Right-duty' relationship

32

What is the policy issue with allowing an enforcer principle?

It would be a way for England to compete with other jurisdictions, but would need to be balanced against the possibility of inalienability

33

What academics disagree with Hayton's analysis of Re Denley's?

Hayton and Mitchell

34

When does Matthews believe English law will tolerate an NCP

When the property remains alienable - if it becomes inalienable, and the document exceeds the perpetuity period, there can be no NCP

35

What is the rule against remoteness of vesting at common law?

Vest in no more than 21 years from the death of an expressly or impliedly relevant life in being at time of creation

36

In Re Ogden judgment

Gift to voluntary association needs to be a gift to the individual members, even if for general purposes, unless purpose is charitable

37

Saunders v Vautier judgment

Equitable ownership seen as having the right to demand the trust be wound up and title transferred, and seen as being a vital component of the trust

38

Re Brockbank

B has no right to control T in the exercise of any discretion conferred upon him

39

Re Osoba judgment

Individuals need to get something valuable for performance

40

What are two interpretations of the 'wait and see' rule on Re Denley-type trusts?

Either trust is valid to the extent that T uses his powers of appointment within the period, and at the end property goes on RT to S; or like other 'permitted purpose trusts', subject to inalienability, not remoteness

41

What interpretation of the 'wait and see' rule in Re Denley-type trusts do Hayton and Mitchell take?

Trust is valid to the extent that T uses his powers of appointment within the period, and at the end property goes on RT to S

42

What is the FACTUAL difficult with absolute gifts with a motive?

Unlikely donor intended an absolute gift

43

What case shows that S cannot oust Saunders, even expressly?

Stokes v Cheek

44

Re Denley's facts

Sports ground put on trust for the purpose of its maintenance, and use by employees.

45

In Re Ogden general

Gift to voluntary association

46

Leahy v AG for NSW general

Nuns of Catholic Church

47

What test, instead of remoteness, is used in the case of the few permitted purpose trusts?

Inalienability

48

Why is remoteness inappropriate as a test for validity of purpose trusts?

Interests cannot vest in purposes and they could last forever

49

What are three limitations on Saunders?

Does not apply to contingent interests, possible for beneficiaries under a contractual trust to contract out of their Saunders rights and B has no right to control T in the exercise of any discretion conferred upon him

50

Re Bowes judgment

Trust for benefit of human beneficiaries with the motive to plant trees

51

What is the conceptual nature of allowing an enforcer principle in English law?

More public law - property does not need to be held on a duty owed to a beneficiary, and if the base of trust law relis on the absolute rights of B, this would require a fundamental shift in the conceptual nature of the law

52

What Act means that English courts have to apply private purpose trusts from other jurisdictions?

Recognition of Trusts Act 1987

53

What argument of Hayton's does Matthews find 'revolutionary'?

That an S can confer additional enforcement rights on non-beneficiaries

54

Re Thompson

Legatee in default of application for purpose could complain if gift not applied

55

Who gave the primary/secondary trust framework in Quistclose?

Wilberforce

56

Section 7 Perpetuities and Accumulations Act 2009

Statutory 'wait and see' rule for remoteness of vesting

57

Re Andrew's Trust judgment

Surplus funds went to the children equally; education was the motive

58

What does Hayton find to be at the core of a trust?

Accountability to SOMEONE, not B

59

What was the motive found in Re Andrew's Trust?

Education

60

What does Matthews disagree with Hayton on?

S should be able to confer additional enforcement rights on non-beneficiaries because such a claim lacks support in authority

61

Morice v Bishop of Durham judgment

Too broad for charitable purpose, so abstract private purpose - members may be numerous and large estate, so unlikely S intended all members to be Bs

62

Twinsectra v Yardley judgment

No primary/secondary trust framework. Trust subject to exercise of a power that creditor has given borrower to apply the property to the given purpose - the exercise of this power diffuses the creditor's interest

63

Re Endacott general

Do not extend cases of trusts of imperfect obligation, and trusts for saying of masses in private forms one exception

64

What two subcategories can one find in the exception of apparent purpose trusts benefitting particular people?

Re Denley's and absolute gifts with a motive

65

What Act gives a statutory 'wait and see' rule for remoteness of vesting?

Perpetuities and Accumulations Act 2009, section 7

66

Stephenson v Barclays Bank

Saunders may not allow one beneficiary of a fixed trust to claim his share if it involves selling the property

67

Who said that there is an 'irreducible core of obligations owed by the trustees to the beneficiaries and enforceable by them which is fundamental to the concept of a trust'?

Millett LJ in Armitage v Nurse

68

What did Mr Justice Goff require there to be in Re Denley's before he would accept locus stand?

Purpose had to be sufficiently direct and tangible for it be meaningful to say individuals had locus standi

69

How can Bs produce an ad hoc variation of the trustees obligations to them?

Be in agreement and sui juris, consenting to T doing something in breach of his duty

70

Re Abbott judgment

Surplus when both women died went on RT to the donors

71

Re Denley's Trust Deed general

Sports ground

72

What did the full-scale study of NCPs by Baxendale-Walker show?

NCPs are desirable and English trust law has no B principle

73

How does Matthews criticise the study by Baxendale-Walker?

'Unreal', with no case support

74

What did Mr Justice Goff reject in regard to any dispute between the beneficiaries?

That this would make the trust invalid - such disputes arise in other trust contexts as well

75

Why does Hayton not think there is a question of administrative unworkability in the case of the enforcer principle?

Because the trust is not to benefit specific members but to carry out ascertained purposes within parameters

76

In what three cases does Matthews believe a promise may be enforceable by an enforcer?

Under the 1999 Act, where there is consideration or on orthodox contractual grounds

77

Why is it arguable that trusts of imperfect obligation aren't exceptions to the B principle at all?

Ts only have a POWER, not a duty

78

In what two cases of absolute gifts with a motive did the court make it explicit that Saunders applies?

Re Bowes and Re Osoba

79

Re Hooper

Allow trusts for erection/maintenance of graves/monuments

80

What does Matthews draw analogy with to show that an enforcer principle is conceptually allowed in English law?

Contract law pre-1999 shows that the critical thing is whether S intended to confer rights on T; if A agrees B will confer a benefit on C, and C has no right to enforce it, despite benefitting

81

Section 8 Perpetuities and Accumulations Act 2009

Excludes future/potential members who might make the trust void for remoteness

82

Re Osoba general

Maintenance of mother, widow and daughter education

83

How does Matthews criticise Walker's definition in their full-scale study in particular?

Included cases where orthodox opinion would say there was a beneficiary

84

Re Bowes general

Plant trees

85

Morice v Bishop of Durham general'

'Objects of benevolence and liberality'

86

Which case does Matthews believe doesn't support the enforcer principle under trusts of imperfect obligation?

Re Thompson

87

Why is the decision in Re Abbott inconsistent with the human beneficiaries principle?

If the principle applied, the money would have gone back to women's heirs

88

In what contexts are DTs not proprietary?

When B has a mere hope of receiving a future interest

89

When do the few permitted purpose trusts become void?

If it is unclear if someone will become absolutely entitled by the end of the common law period

90

What happens if an executor under a trust of imperfect obligation does not exercise the power?

Property can be claimed by whoever would have had the benefit of the RT had the disposition failed

91

How does Matthews explain the case of Re Thompson?

Mere personal obligation once judge exacted an undertaking from T to apply the sums for the purpose - not support for enforcer principle

92

Who said that the trust needs to be 'for the benefit of a class of individuals, the specified manner of their enjoyment... being secondary'?

Lord Millett

93

Why did In Re Price not allow an endowment if the society is perpetual?

Because class is unascertainable and imposes trust on members

94

Stokes v Cheek

S cannot oust Saunders even expressly

95

Who said that 'there is at best a cautious future for the NCP trust'?

Matthews

96

What case Allow trusts for maintenance of animals under trusts of imperfect obligation?

Petingall v Petingall

97

Leahy v AG for NSW judgment

Religious groups are usually charitable trusts, but not when they refer to cloistered monks/nuns as can't prove action is for benefit of public

98

What do Bs have to do in order to consent to T doing something in breach of his duty?

Be in agreement and sui juris

99

Who gives 4 reasons why Saunders actually matters?

P Matthews

100

What two distinct points does Matthews make about NCPs?

They resemble a 3rd party contract claim and result in a beneficial property vacuum

101

What are the 'exceptions' to the beneficiary principle?

Trusts of imperfect obligation, apparent purpose trusts benefitting particular people and Quistclose trusts

102

Which case under absolute gifts with a motive is inconsistent with the human beneficiaries principle?

Re Abbott

103

What is the basic rule on the beneficiary principle, and from who does it come?

Millett LJ in Armitage v Nurse; 'irreducible core of obligations owed by the trustees to the beneficiaries and enforceable by them which is fundamental to the concept of a trust'

104

If there is a fixed trust, does Saunders still apply? When does it not?

Yes - maybe not if it involves selling the property: Stephenson v Barclays Bank

105

Re Abbott general

Two deaf and mute women

106

Saunders v Vautier general

Stock, age of 25

107

Who essentially reformulates NCPs as contractual obligations?

Matthews

108

What study found NCPs are desirable and determined no B principle?

Baxendale-Walker

109

Re Dean general

Maintenance of horses and hounds for next 50 years

110

What academic believes Re Denley's supports an enforcer principle?

David Hayton

111

What case made it clear B has no right to control T in the exercise of any discretion conferred upon him

Re Brockbank

112

what case stated that a gift to a voluntary association needs to be a gift to the individual members unless purpose is charitable?

In Re Ogden

113

What is the difference between English and Scots law on property rights?

In Scots law, B only has a right in personal against T, equal to a creditor

114

What section of what Act gives that beneficiaries can force T to retire and then replace him?

S.19 and 20 TOLATA

115

Why do Hayton and Mitchell not believe Re Denley's supports enforcer principle?

Duties of T could only be enforced by parties who BENEFITTED.

116

Through what specific method does Matthews believe the same result as in an NCP can be reached?

C(RoTP)A

117

Why are absolute gifts with a motive also not a true exception to B principle?

Clear beneficiary and no duty on T, but there is a factual difficult in that D probably didn't intend absolute gift

118

Who says that NCPs are useful, but that the same result can be achieved other ways, e.g. C(RoTP)A?

Matthews

119

Barclays Bank v Quistclose judgment

Primary trust to pay dividends and then secondary, resulting trust back to the creditor once the primary can no longer be carried out.

120

In what context are DTs proprietary

By virtue of a Saunders power

121

Why did Morice state charitable purpose trusts are different?

Attorney General can enforce them

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