Equity & Trusts Revision Notes

A comprehensive set of practice questions covering Equity purpose, the Three Certainties, various trust types, and key case law from the lecture notes.

What is the primary purpose and philosophy of Equity?

Equity exists to soften the harshness of common law and achieve fairness, often remembered by the phrase "Common law is strict, Equity is fair."

Which case established the requirement for the Three Certainties?

Knight v Knight (1840)

What are the 'Three Certainties' (ISO) required to create a trust?

Intention (clear intention to create a trust), Subject Matter (clear trust property and shares), and Objects (identifiable beneficiaries).

What was the outcome regarding intention in Paul v Constance (1977)?

The phrase "This money is as much yours as mine" was held to be a valid expression of intention.

Why was the wording in Lambe v Eames (1871) insufficient to create a trust?

The wording used was considered too vague to demonstrate clear intention.

In Palmer v Simmonds (1854), why was the subject matter considered uncertain?

The phrase "bulk of my estate" was determined to be too uncertain to constitute clear subject matter.

What did Hunter v Moss (1994) establish regarding subject matter?

It established that identical shares of property were sufficiently certain to form the subject matter of a trust.

What test was established for Objects in McPhail v Doulton (1971)?

The "is or is not" test for identifying beneficiaries.

When does a Resulting Trust typically arise in the context of family homes?

It arises when one person contributes financially to the ownership of a property.

What are the three requirements for establishing an Express Trust?

The three certainties, formalities, and constitution.

What is the 'CAA' memory trick for the requirements of Secret Trusts?

Communication, Acceptance, and Reliance.

According to Ottaway v Norman (1972), what is the purpose of Secret Trusts?

To prevent fraud by the trustee.

How do Half-Secret Trusts differ from Secret Trusts regarding the will?

In a half-secret trust, the will shows that a trust exists but hides the identity of the beneficiaries.

What is the specific communication requirement for Half-Secret Trusts according to Blackwell v Blackwell (1929)?

Communication must happen before the execution of the will.

What is the fundamental principle established in Milroy v Lord (1862) regarding the constitution of trusts?

Equity will not perfect an imperfect gift.

What does the 'Re Rose' (1952) rule state regarding the transfer of property?

A transfer is effective if the donor has done everything required of them to complete the transfer.

What exception to the constitution of trusts was established in Pennington v Waine (2002)?

A transfer may succeed if it would be unfair (unconscionable) to deny it.