Resulting trust essays

According to Swadling, if a settlor who is attempting to create a trust was asked 'what he would like to happen if the trust fails, most settlor would say they want the property back. This thinking is also reflected in the Privy Council case of Air Jamaica v Charlton , where Lord Millet said: But [a resulting trust] arises whether or not the transferor intended to retain a beneficial interest he almost always does not - since it responds to the absence of any intention on his part to pass a beneficial interest to the recipient. The facts concerned a company, Rolls Razor Ltd. The orthodox theory of resulting trusts contained in Vandervell v IRC states that where it was said that the beneficial interest must belong to or be held for somebody; so if there was an evidential gap in this respect it was not to belong to the donee or be held in trust by him for somebody, it must remain with the donor. Chase Manhattan The unjust enrichment thesis has not been adopted by the courts. Conclusion On one level, there is certainly merit in the proposition that resulting trusts have a role to play in the commercial world; particularly the Quistclose resulting trust which, if recognised, affords invaluable protection to lenders in the event of insolvency. Secondly, automatic resulting trusts: this arises where property is transferred attempting to establish an express trust but fails at some stage. Automatic resulting trusts Oxford University Press, Thursday, May 25, Resulting Trust Question: Is it correct to say that all resulting trusts reflect the common intention of the parties? The Conveyancer and Property Lawyer. This argument was put forward in the recent theses of BirksChambers that the the key to the resulting trust was not the intention to create a trust, but the intention of the donor not to benefit the recipient.

There must be a valid contract of sale and and the contract must be one of which a court of equity will grant specific performance. Is th is really a constructive trust?

quistclose trust essay

Legal Studies. The presumption was rebutted on the basis that firstlythe fact that the father put the property in the sons name alone could be explained on the fact that the purchase would be assisted with a mortgage.

Because this purpose could not be fulfilled, the trust failed and as such beneficial interest results back to the transferor, like any other automatic resulting trust. As enunciated in a landmark case of Lloyds Bank Ltd v Rosset a claim of interest would mean payments that should have been made are for the part of the purchase price or mortgage payment. However, the problem with this argument is the fact that majority of settlors do not contemplate that the trust would fail. The House of Lords ruled this to be unlawful as the money was held on resulting trust for Quistclose. The intention to create a trust was not evident on the facts. Three considerations are of importance here. Fourthly, the one adopted by Chambers and Birks that there is no legal basis for which B can claim that A intended to B to receive the property for his own benefit. As a matter of trusts you could use your knowledge to criticise this reasoning. Secondly, to his child. The Venture What is the content of the presumption of resulting trust and what evidence is therefore sufficient to rebut it? This borrowed money was placed in a separate account at Barclays Bank which was opened specifically for the purpose of dividend payment. Law Quarterly Review. Fourthly, a presumption of notgift cannot be a presumption of non-beneficial transfer for the law does not recognise a notion of non-beneficial ransfer distinct from transfers on declared trusts or as security. Legal Studies. This type of resulting trust cannot be rebuttable by evidence of any contrary intention.

An equitable import, the resulting trust is a legal mechanism which aims to return the beneficial interest of some property to the transferor following some trigger. It was further questioned whether they even should have such influence in commercial exchange as they lack compelling normative foundation.

automatic resulting trust

Chambers argues that the presumption arises are just cases where there is no legal basis for the transaction. The presumption of advancement has been criticized as being anachronistic and weak [Pettitt v.

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Resulting trust essays
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Mavrky Law of Trust: Resulting Trust