Property Law - Unincorporated Associations Flashcards Preview

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Flashcards in Property Law - Unincorporated Associations Deck (58):
1

Twinsectra v Yardley

T for non-charitable purpose of UA may be rescued by appointment of an enforcer, with common law perpetuity period and sufficiently certain terms to allow enforcement on restrictions of income

2

How does a registered limited liability company encourage investment in business?

Shareholders are not personally liable as the company is a separate legal entity

3

What case made it clear that cessation of membership ends entitlement to assets as no contractual relationship?

Neville Estates Ltd v Madden

4

What case shows an example of when there was no ability to exercise Saunders v Vautier, and thus no ability to interpret a gift under the contract-holding analysis?

Re Grant's Will Trusts

5

What case stated that if a UA is charitable, funds need to be kept separate and stay subject to the purpose of the UA even upon dissolution?

Brooks v Richardson

6

Re St Andrew's (Cheam) Lawn Tennis Club Trust judgment

Despite freehold being bought for value 60 years earlier, it did not belong to the members - rules of 'UA' did not allow division of land or sale proceeds among themselves, so money on RT to original owner

7

What is the main difference between creating a company and creating an unincorporated association?

No creation of an artificial person in the case of the latter

8

Re Recher Will Trust judgment

Allowed accretion - D did not intend outright gift

9

What is the issue with gifts to a UA?

It is not a separate legal entity

10

What are the three possible places surplus funds can go upon dissolution of a UA?

To donors on RT, to members of association on a contractual basis, or on bona vacantia to the Crown

11

Re Buck's Constabulary Fund judgment

Applied Re Recher so gifts follow rules of UA. Therefore, money should be distributed members - no RT to donors and no bona vacantia.

12

When can a gift to a UA not be interpreted by the 'contract-holding' analysis?

When there is no ability to exercise Saunders v Vautier

13

If one founder refuses to comply with the rules of a UA, what can the others do and why?

Bring a claim for breach of contract or even specific performance, because they are all linked by a contract

14

Why should Re Bucks be preferred to Re West Sussex, according to Hayton and Mitchell?

Because pays attention to primacy of members' contracts in determining beneficial entitlements

15

What case shows the extreme impact of a non-charitable purpose on a UA and distribution of property?

Re St Andrew's - NCP meant the land went on RT to original owner because trust was void

16

With what case's obiter dicta did Lewison J disagree in Hanchett-Stamford?

Re Buck's

17

What is used to bind the founders in unincorporated associations?

Contracts

18

In what case did the court in Re West Sussex find there was no RT?

When the donors had received something in return

19

Conservative and Unionist Central Office v Burrell on contract-holding analysis

'Easy answer'

20

What case suggested an NCP trust for UA could be rescued by enforcer?

Twinsectra v Yardley

21

Why is the judgment in Re Lipinski's strange?

Justice Oliver refused to see it as an outright gift, and then gave it as, essentially, an outright gift by putting the property on trust for the members of the UA, and accepting they can exercise their SvV powers

22

What is any reference to a purpose construed as in construing a gift to a UA as an outright gift to present members?

A motive, not a duty

23

What is the most common legal structure used to create a company?

Registered limited liability company

24

Conservative and Unionist Central Office v Burrell

Four things for a UA: Association of 2 or more people, bound by common purpose through mutual contract, association has rules to determine who controls it, its funds and the terms of control, AND must be possible to join or leave at will

25

What is the 'contract-holding' analysis of gifts to a UA?

Gift treated as accretion to association's property to be dealt with according to A's rules

26

What are the six ways courts have taken a creative interpretation of gifts to UAs?

Outright gift to present members, trust for present members, trust for present and future members, 'contract-holding' analysis, trust for A's abstract impersonal and non-charitable purposes and a trust for association's charitable purposes

27

Re West Sussex Constabulary's Widows, Children and Benevolents judgment

No RT for those who received something in return (e.g. loterry tickets) because there is no 'direct contribution' to the fund, only a profit. Money in collection box was an absolute gift.

28

When will an outright gift to UA members be interpreted as an accretion to the body's fund?

If the contract between the members states such gifts will be treated as such, dealt with according to the UAs rules

29

What case did the court draw analogy with in Twinsectra v Yardley on trust for UA's abstract, impersonal and non-charitable purpose?

Quistclose

30

When did Re West Sussex find donors to have made an absolute gift of property?

When they put money in a collection box

31

Why is the interpretation of a gift as a trust for A's abstract impersonal and non-charitable purpose legally problematic?

No NCPs unless trust for persons, fulfil exceptions or charitable purpose

32

What do the founders of a registered limited liability company do to receive shares in the company

Pay money to it

33

Who argues Re Bucks should be preferred to Re West Sussex for paying attention to primacy of members' contracts in determining beneficial entitlements?

Hayton and Mitchell

34

What case gives four things needed for a UA?

Conservative and Unionist Central Office v Burrell

35

Re St Andrew's (Cheam) Lawn Tennis Club Trust general

Lease to T for tennis club, with option to purchase exercised

36

What case stated that for Re Denley to apply, there needs to be a sufficiently certain class of members under a UA before trust for A's abstract, impersonal and non-charitable purpose?

Re Lipinski's WT

37

Who disagreed in Hanchett-Stamford with obiter dicta in Bucks?

Lewison J

38

What did Twinsectra v Yardley require in addition to the enforcer to allow enforcement of trust for UA with abstract, impersonal and non-charitable purpose?

Trust subject to common law perpetuity period, and sufficiently certain terms to allow enforcement on restrictions of income

39

Hanchett-Stamford v AG judgment

Disagreed with obiter dicta in Bucks that surplus goes on bona vacantia when UA comes to an end for only having one member left - court cannot strip away ownership rights. THEREFORE, property vests absolutely in the last member of a UA.

40

What happens to money paid to the UA?

Paid to treasurer, who then becomes a trustee under a bare trust, holding the money on trust for the other members

41

What are the three things that need to be decided upon to create an unincorporated association?

Rules to determine how much everyone puts in, rules of how to wind the association up and rules of how to distribute the funds

42

Hanchett-Stamford v AG general

Campaigning against vivisection, one member left

43

Re Lipinski's WT general

Socio-religious UA, money on trust for new building

44

Brooks v Richardson

If UA is charitable, funds need to be kept separate and remain subject to purpose upon dissolution of UA

45

What case shows that the presumption of an outright gift of property to a UA's members is easily displaced?

Leahy v AG for NSW

46

What was the outcome in Hanchett-Stamford?

Property vested absolutely in the last member

47

What can banks ask for in the case of a registered limited liability company from a shareholder?

A personal guarantee to ensure performance

48

What is the standard way of interpreting gifts to a UA?

Accretion to the body's fund under a 'contract-holding' analysis

49

What creative interpretation of a gift to a UA is legally problematic?

Trust for A's abstract impersonal and charitable purpose

50

Re Lipinski's Will of Trusts judgment

For Re Denley to apply, there needs to be a sufficiently certain class of members under a UA before trust for A's abstract, impersonal and non-charitable purpose

51

Neville Estates Ltd v Madden

Cessation of membership ends entitlement to assets as no contractual relationship

52

Re Recher's Will Trust general

Anti-vivisection society

53

What did Justice Oliver apply in Re Lipinski's WT to find the construction of a new building was solely a motive?

Re Bowes

54

What does a registered limited liability company involve the creation of?

A new legal entity with a separate legal personality

55

If a gift to a UA is treated as a trust for present and future members, what happens to Treasurer's obligations?

Obligation to keep money intact or would be inconsistent with future member's rights, only spending the income

56

What did Lewison J use in Hanchett to show justification for interfering with peaceful enjoyment of possessionwas not satisfied?

Article 1 of First Protocol of ECHR

57

Re Lipinski's WT on trust for UA's charitable purposes

Interpreted money on trust for new building as a Re Recher-type gift, not a private purpose

58

Why did the next of kin want the trust to be interpreted as one for a private purpose in Re Lipinski's WT?

Because then the trust would be void and the property would go to the deceased's next of kin, him.

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