three certainities

Question 1

What are the three certainties necessary for the creation of an express trust?

Answer 1

• Certainty of intention
• Certainty of objects
• Certainty of subject matter

Question 2

What is the definition of certainty of intention in the context of an express trust?

Answer 2

An intention to create a trust is a necessary requirement for the creation of an express trust

Question 3

What does requisite intention refer to in the context of an express trust?

Answer 3

An intention to impose or assume the duty characteristic of a trust for the benefit of a beneficiary or purpose

Question 4

What was the ruling in the case of Re Oldfield [1904] 1 Ch 549 regarding ‘desire’?

Answer 4

‘A desire carries no obligation except a moral one’

Question 5

How can a person’s intention to create a trust be ascertained?

Answer 5

From their words (spoken or written) and conduct

Question 6

True or False: Most trusts have prescribed formalities.

Answer 6

False

Question 7

What is an important indicator of intention to create a trust?

Answer 7

Use of the word ‘trust’

Question 8

What does the segregation of funds in a separate bank account indicate?

Answer 8

It can be good evidence of an intention to create a trust, but is not conclusive

Question 9

In Paul v Constance [1977] 1 WLR 527, what key phrase indicated a trust intention?

Answer 9

‘This money is as much yours as mine’

Question 10

What was the significance of the couple’s familiarity with legal concepts in Paul v Constance?

Answer 10

It reminded that intention is determined by specific facts, not legal terminology

Question 11

What interaction exists between certainty of intention and the other certainties?

Answer 11

Vagueness in subject matter or objects may imply no intention to create a trust

Question 12

What was the conclusion in Mussoorie Bank Ltd v Raynor (1882) regarding the testator’s intention?

Answer 12

The indeterminate nature of the trust property demonstrated no intention to create a trust

Question 13

In Lyell v Kennedy (1889), what did Kennedy’s actions with the bank account indicate?

Answer 13

He held the sum on trust for Ann’s heir

Question 14

What was the ruling in Re Kayford Ltd (in liquidation) regarding the separate bank account?

Answer 14

The sum was held on trust for customers

Question 15

In Re Lehman Brothers International (Europe), what was concluded about post-administration payments?

Answer 15

Clients were not mere creditors; Lehman held payments on trust for them

Question 16

What was the outcome in Modelboard Ltd v Outer Box Ltd (in liquidation) regarding the proceeds of sale?

Answer 16

There was no trust; the plaintiff had a charge over the proceeds

Question 17

Fill in the blank: Certainty of intention is necessary for the creation of an _______.

Answer 17

[express trust]

Question 18

What is the plaintiff’s interest in the sale proceeds in relation to the defendant’s obligation?

Answer 18

The plaintiff’s interest in the sale proceeds is linked to the defendant’s obligation to pay the purchase price.

This relationship highlights the financial dynamics in a sales transaction.

Question 19

In the example provided, what was the selling price of the sheets and the selling price of the products incorporating those sheets?

Answer 19

The sheets were sold for £1,000, and the products incorporating the sheets were sold for £1,200.

This example illustrates the financial flow between the plaintiff and defendant.

Question 20

What view did the speaker reject regarding the defendant’s obligation upon receiving £1,200?

Answer 20

The speaker rejected the view that the defendant’s obligation was discharged upon receipt of the £1,200.

This indicates a preference for maintaining the financial responsibility of the defendant.

Question 21

What was the only solution that made ‘business sense’ according to the speaker?

Answer 21

The plaintiff’s interest in the £1,200 extended only so far as was necessary to discharge the defendant’s payment obligation.

This reflects a practical approach to financial obligations in business transactions.

Question 22

What was the key case referenced in the discussion?

Answer 22

Modelboard Ltd v Outer Box Ltd (in liquidation) [1993] BCLC 623.

This case serves as a legal precedent for the discussion of trust and creditor relationships.

Question 23

What conclusion was reached about the plaintiff’s interest in the sale proceeds?

Answer 23

The plaintiff’s interest in the sale proceeds was capable of being defeated by payment of the purchase price.

This establishes the priority of the defendant’s obligation over the plaintiff’s interest.

Question 24

What type of creditor was the plaintiff determined to be?

Answer 24

The plaintiff was determined to be a secured creditor, not a beneficiary of a trust.

This distinction is crucial in understanding the rights of the parties involved.

Question 25

Does the characterization of a transaction as a trust by the parties preclude the nature of that transaction?

Answer 25

No, the characterization of a transaction as a trust is not conclusive as to its nature. ## Footnote This emphasizes that legal definitions can differ from parties' perceptions.

Question 26

What is required for the creation of an express trust?

Answer 26

Certainty of intention is required for the creation of an express trust. ## Footnote This legal principle ensures that the parties involved clearly intend to create a trust.

Question 27

How is intention ascertained in the context of creating a trust?

Answer 27

Intention is ascertained from a person’s words and conduct. ## Footnote This means that actions and statements can reveal the true intentions behind financial agreements.

Question 28

Is the use of the word ‘trust’ necessary or conclusive in indicating a trust relationship?

Answer 28

No, the use of the word ‘trust’ is neither necessary nor conclusive. ## Footnote This highlights that legal terminology alone does not determine the nature of a relationship.

Question 29

What is the relationship between intention and the other two certainties in trust law?

Answer 29

There can be an interaction between intention and the other two certainties. ## Footnote This indicates that establishing a trust involves multiple considerations.

Question 30

How fact-specific is the question of sufficient intention to create a trust?

Answer 30

The question of sufficient intention to create a trust is extremely fact-specific. ## Footnote This means that each case may require a unique analysis of circumstances.

Question 31

What must be considered in context when determining intention to create a trust?

Answer 31

Words and conduct must be considered in context. ## Footnote This approach ensures a comprehensive understanding of the parties' intentions.