Certainty of Subject Matter Flashcards
Why did Palmer v Simmonds (1854) 2 Drew 221 fail?
“The bulk of my residuary property” failed for uncertainty as you cannot ascertain what the “bulk” is.
What words let Sprange v Bernard (1789) 29 ER 320 fail?
“The remaining part of what is left” failed for uncertainty.
What did the court state in Re Golay’s Will Trusts [1985] 2 All ER 660?
The court determined that a trust that pays “a reasonable income” would not fail as a reasonable income was something that the court could quantify.
What will happen if there is a certainty of subject matter but not the beneficial share?
The trust will fail and the property will be held on resulting trust for the settlor.
Why did Boyce v Boyce (1849) 6 Sim 476 fail?
The trust failed for uncertainty as it wasn’t clear which three properties would be left for who.
What was the rule in Re London Wine (1986) PCC 125?
If the trust property is chattels, it must be segregated from the mass as not all chattels are identical.
What did Re Clifford [1972] state about the segregation rule?
The segregation rule does not apply to testamentary trusts.
Which case does Re Goldcorp Exchange [1995] 1 AC 74 hold the same view as?
Re London Wine (1986) PCC 125.
Three places
Where does the chattels rule not apply?
Money, shares & other choses in action.
Why did MacJordan Construction Ltd v Brookmount Erostin Ltd [1992] BCLC 350 fail?
It was held that there was no trust as there was no identifiable subject matter.
Donee or settlor
What happens if there is no certainty of subject matter and which case is relevant?
It becomes a gift to the donee absolutely - (the rule in Hancock v Watson) or, the gift is held on resulting trust for the settlor.
