Validity of Gifts Flashcards
(24 cards)
Case: Milroy v Lord (1862)
What principle was established in Milroy v Lord (1862) regarding gifts?
Equity will not assist a volunteer. If a donor intends to make a gift, legal formalities must be fully complied with. Equity will not perfect an imperfect gift.
What are the two key statutory formalities for the transfer of freehold land by gift?
Deed: s. 52(1) LPA 1925 and s.1 LPMPA 1989
Registration: s. 4 and s. 27(2)(a) LRA 2002
Equity and Gifts: Re Rose [1952]
What rule was established in Re Rose regarding imperfect transfers?
The “every effort rule” — if the donor has done everything in their power to transfer the property, equity will perfect the gift
Case: Mascall v Mascall [1984]
How did Mascall v Mascall apply the Re Rose rule?
A father had completed the transfer and sent it to the Land Registry. Equity held the transfer effective even though it was not registered because all that was required of the donor had been done.
Case: Curtis v Pulbrook [2011]
What three exceptions to the rule “Equity will not perfect an imperfect gift” were identified in Curtis v Pulbrook by Briggs, J?
An interim charging order was granted against shares D owned for court damages
D claimed that he had in 2007 given 300 of his shares to his wife and 14 to his daughter and these shares could not be subject to the final charging order
D did not complete the share transfer forms and did not pass them his share certificates but issued them new certificates unauthorised by the company
D did not transfer away the shares successfully
None of the three situations below are applicable
Rule in Re Rose
detrimental reliance by the donee sufficiently binds the donor’s conscience so the court may impose a constructive trust
If a ‘benevolent construction of the words used’ (interpreted in a kind or generous way) justifies the court in finding an effective gift or implied self-declaration of trust.
Transfer of Chattels – Re Cole [1964]
Why did the wife fail to acquire title to the furniture in Re Cole?
facts- A husband bought a new house, and then showed his wife around it. He took her into each room, and showed her the various items of furniture, telling her “it’s all yours”.
Husband became bankrupt
Contents of the house were claimed by the Trustee in Bankruptcy
Wife claimed the contents belonged to her.
Because there was no actual delivery — mere words (“it’s all yours”) were insufficient to effect a valid gift.
Delivery of Chattels – Rawlinson v Mort (1905)
What counts as sufficient delivery of a chattel in Rawlinson v Mort?
Symbolic delivery (placing hands on an organ while expressing intent to give) was sufficient — more than words alone.
Constructive Delivery – Thomas v Times Book Co [1966]
Q: Why was the manuscript gift valid in Thomas v Times Book Co?
Dylan Thomas lost the original Under Milk Wood manuscript in a taxi. A BBC producer found a copy and gave it to Thomas, who said, “If you can find the original, you can have it,” and suggested where to look. The producer then found it.
Held: This was valid constructive delivery—Thomas expressed intent to gift and enabled the producer to take possession.
A: Constructive delivery: donor provided specific information that allowed the donee to locate and retrieve the manuscript.
Case: Jones v Lock (1865)
Q: Why was the cheque not a valid gift in Jones v Lock?
A father put a cheque into the hand of his son of nine months old, saying, “I give this to baby for himself,” and then took back the cheque and put it away
He also expressed his intention of giving the amount of the cheque to the son
Shortly afterwards the father died, and the cheque was found amongst his effects
A: The father’s statement about giving the cheque to his son was insufficient. No delivery occurred, and no trust was declared.
Lord Cranworth LC - Where there is an imperfect gift and no consideration given, the court will not aid volunteers
Lifetime Gift – Transfer Stages
Q: What steps must be satisfied for a valid lifetime gift of land?
A:
Step 3: Transfer by deed (s.52(1) LPA 1925; s.1 LPMPA 1989)
Step 4: Registration (s.4 and s.27(2)(a) LRA 2002)
Formalities: Contract for Land
Q: What are the formalities under s.2 LPMPA 1989 for a contract in land?
Must be:
In writing
Contain all express terms
Signed by both parties
Transfer of Shares – Re Rose
Q: What made Mr Rose’s share gift effective in equity, despite delay in registration?
A: He executed and submitted all necessary forms; equity treated the transfer as effective at that point.
Transfer of Shares – Stock Transfer Act 1963
Q: What formalities apply for transferring shares in a private company?
Stock Transfer Form must be signed (s.1(1) & (2))
Registration in company’s member register (CA 2006 s.113 & s.128A)
Strong v Bird (1874)
Q: When can a failed lifetime gift be perfected on death under Strong v Bird?
Donor intended to make an immediate gift
Intention persisted until death
Donee becomes executor/administrator — gift perfected
Re Ralli’s Will Trusts [1964]
Q: How does Re Ralli’s extend Strong v Bird’s principle to trusts?
If the intended trustee receives legal title through another route (e.g., as executor), the trust is perfected even though legal formalities were incomplete.
Presumption of Advancement
Q: When does the presumption of advancement apply?
Father to child (Re Roberts)
Husband to wife (Pettitt)
Person in loco parentis to child (Hepworth)
Presumption of Advancement – Gender Bias
Q: What relationships do not benefit from a presumption of advancement?
Mother to child
Wife to husband
Cohabitees (any gender)
Dewar v Dewar [1975]
Q: Why was the money treated as a gift in Dewar v Dewar?
The mother’s intention was to give her son a sum of money to buy a house. The son’s intention was to treat the sum of money as a loan.
The transaction was a gift, as the son (the donee) could not force his mother (the donor) to take the money back
Because the son couldn’t legally require the mother to take the money back — intention to gift was established.
Transfer of Intangible Property: Public Company Shares
Q: How are shares in public companies transferred?
Electronically via CREST
Register of shareholders updated
Transferor must comply with corporate regulations
- Overreaching and Gifts – LRA 2002
Q: What does s.28 LRA 2002 say about priority of unregistered interests when land is gifted?
A donee (non-purchaser) takes the land subject to any pre-existing unregistered interests — s.29 doesn’t apply.
Types of Delivery in Gifts of Chattels
To make a valid gift of personal property (chattels), the donor must intend to make a gift and carry out a legally recognised form of delivery. Without valid delivery, even the clearest intention to give will fail at law.
Actual Delivery
Meaning: Physical transfer of the item from donor to donee.
Case Example:
⚖ Re Cole (1964) – NOT valid: Husband said “it’s all yours” to wife about furniture, but didn’t hand it over. No physical delivery = no valid gift.
Rule: Words of gift alone are insufficient without actual transfer
Constructive Delivery
Meaning: Donor enables donee to take possession of the item (without physical handing over).
Case Example:
⚖ Thomas v Times Book Company (1966) – Dylan Thomas said “if you can find it, it’s yours,” and told the donee where to look. Court upheld as constructive delivery.
Key Feature: Donor gives access or means to take the item
Symbolic Delivery
Meaning: Transfer of an item representing the gift (e.g., keys, documents).
Case Example:
⚖ Rawlinson v Mort (1905) – Donor placed hands on an organ and said “it’s yours” – deemed sufficient symbolic delivery when combined with intention.
Key Feature: Gesture or token stands in for the item itself.
How to Answer a Property Law Problem Question
“This scenario concerns the issue of the transfer of [type of property] by way of gift, and the difficulties raised by the lack of consideration and incomplete formalities.”
I – ISSUE
Clearly identify the legal issue:
What is being transferred? (Land, chattel, shares?)
Is it a gift? Is the donee a volunteer?
Has the transferor complied with the required legal formalities?
Can equity assist to perfect the gift?
R – RULE
State the legal rules that apply, depending on the type of property:
- Identify the Property Type
Real Property (Land) → governed by LPA 1925, LPMPA 1989, LRA 2002
Personal Property (Chattels) → requires intention + delivery
Intangible Property (Shares) → Stock Transfer Act 1963, Companies Act 2006
- Apply Relevant Statutory Formalities:
Type Formality
Land s.52(1) LPA 1925 (deed), s.1 LPMPA 1989 (form), s.27 LRA 2002 (registration)
Chattels Gift = intention + actual/constructive/symbolic delivery
Shares s.1 Stock Transfer Act 1963 + registration in company books
- Equity Principles (If Legal Formalities Fail):
Milroy v Lord – Equity won’t assist a volunteer
Re Rose – “Every effort” rule
Strong v Bird – Fortuitous vesting
Curtis v Pulbrook – Detrimental reliance/constructive trust
Proprietary Estoppel (if applicable)
A – APPLICATION
Apply rules to facts:
Identify whether formalities have been complied with.
If not, can equity help perfect the transfer?
Has the donor done everything they can?
Is there detrimental reliance?
Is there fortuitous vesting (e.g. Strong v Bird)?
Consider intention, delivery, and relevant exceptions.
Tip: Discuss both sides — e.g. what supports a valid gift, what undermines it.
C – CONCLUSION
Conclude:
Who holds legal/equitable title?
Has a valid gift been made?
Will the donee retain the property, or does it remain with the donor or their estate?
✅ Useful sentence starters:
“Although legal title may not have passed due to unmet formalities, equity may recognise a completed gift if…”
“However, the donee is a volunteer and equity will not assist unless…”
Real Property (Land Law)
Definition: Immovable property – e.g., freehold or leasehold land.
Legal Rules:
Must be transferred by deed: s.52(1) LPA 1925
Registered under s.27 LRA 2002
Example: Gift of a house or plot of land
Personal Property (Chattels & Choses in Action)
Split into Two Types:
Tangible Personal Property (Chattels):
Definition: Physical, movable things
Examples: Books, jewellery, furniture
Delivery Requirement: Actual, constructive or symbolic
Intangible Personal Property (Choses in Action):
Definition: Rights enforceable by legal action
Examples: Shares, debts, intellectual property
Formalities:
Shares in private companies – Stock Transfer Act 1963
Shares in public companies – CREST system + register update
Must often comply with company’s constitution
