Monday, October 7, 2019

Equity & trusts on the three certainties Essay Example | Topics and Well Written Essays - 1500 words

Equity & trusts on the three certainties - Essay Example This is because the property that was administered on behalf of the beneficiaries by the trustee cannot be determined with certainty. The significance of the subject matter in trust formulation may be able to be in the case of Re Goldcorp Exchange Limited. In this case, bankrupt creditors of the company involved in trading of wine asserted that they have the power to claim on the amount of wine they had paid for. It was the case despite the fact that the bottles of wine that they claim to have paid for could not be identified individually with certainty. The judge ruled that it is imperative to ascertain the subject matter with certainty for a trust to be present. Based on the case, it was challenging and, therefore, trust could be established. The rule may be exceptional only for intangible goods such as shares. The intention of the trust must be Cleary be if the trust is to be considered present. In the case of Re Hamilton of 1895, it was held that the law court must critically obs erve the words used by the testator to ascertain whether there was an intention to create trust. Other cases that have been utilized to substantiate the principle of intention include the case of Amber v Evan of 1870s, the case of Paul v Constance of 1977 and that of Hanbury of 1905. The four cases try to substantiate the significance of having a clear intention when creating a trust. In above connection, there must be an object certainty for the trust to be present2. However, the magnitude of object certainty may have a significant variation depending on the trust type. The two types of trust include fixed and discretionally trust. In fixed trust, the distribution of property to the beneficiary is fixed. On the contrary, discretionally trust is where the recipients may be from a given class of people. The principle of object certainty may be substantiated by the case law of Morice v Bishop of Durha. It was decided that trust cannot exist and

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