Equity and Trusts Exam Preparation Notes

Duration: 2 hours total, consisting of two sections (A and B).
Task: Choose one question out of two for each section. Questions include both essays and problem-solving scenarios.
Essay Standards: Must utilize case law, legislation, and academic commentators to engage with key debates.
Problem Questions: Apply the IRAC method: Issue, Rule, Analysis, and Conclusion.
Time Allocation: Spend 10-15 minutes planning each answer using mind-maps or brainstorming.

Clean Hands: A party seeking specific performance must have fulfilled their own obligations (Coatsworth v Johnson [1886]).
Reliance to Public Policy: Tinsley v Milligan focused on reliance on illegality, but Patel v Mirza [2016] shifted the focus to a wider public policy test.
Equity will not assist a Volunteer: Equity generally refuses to enforce gift-giving where no consideration has been provided.
Striving against defeat: While not assisting volunteers, equity will not "strive officiously to defeat a gift" (Pennington v Waine [2002]).

The Three Certainties: Essential for the formation of any trust (Intention, Subject Matter, Objects). ISO
Transfer of Legal Title: Must follow specific formalities based on property type: - Land: Requires specific t-formalities. - Shares: Must comply with the Companies Act 2006 and the Stock Transfer Act 1963.
Rule in Re Rose (1952): If a settlor has done everything within their power to transfer the property, equity may regard the transfer as complete even if legal formalities are pending.
Unconscionability: As per Pennington v Waine [2002], if a donor's actions make it unconscionable to back out (e.g., the recipient acted on the promise), the gift may be crystallised in equity.

General Rule: Private purpose trusts are typically invalid unless they are charitable or meet specific exceptions (Re Denley, Re Astor).
Charitable Status (Northern Ireland): Defined under s2(2) of the Charities Act (NI) 2008 (as amended in 2013). Purposes include relief of poverty, advancement of education, religion, health, and animal welfare.
Advantages: No human beneficiary is required (enforced by the Charity Commission) and they are not subject to standard perpetuity periods.
Cy-près Doctrine: If a charitable trust fails, it can be saved if there is a "General Charitable Intent" (Re Dunwoodie [1977]).

Resulting Trusts: Can be "Automatic" or "Presumed." When a transfer fails, the beneficial interest "jumps back" to the donor (Vandervell v IRC).
Fiduciary Duties: Central duties include the No Profit Rule and the No Conflict Rule.
Breach of Trust: Can range from deliberate misappropriation to a mere lack of skill/care (Armitage v Nurse [1998]).

Personal Claim: A claim against the trustee for the specific loss suffered (Boscawen v Bajwa).
Proprietary Claim: Asserting rights over the property itself; beneficial if the asset has increased in value or the trustee is insolvent.
Following vs. Tracing: - Following: Tracking the same asset from hand to hand (Jones v De Marchant). - Tracing: Identifying a new asset as a substitute for the old one (Foskett v McKeown).
Third-Party Liability: Claims can be made against those who intermeddle with a trust via Dishonest Assistance or Unconscionable Receipt. This is often used when personal claims against the trustee are fruitless.