Constitution Flashcards
What is the definition of constitution in the context of legal title transfer?
Transfer of legal title from one party to another necessary for a transfer on trust or a gift binding.
Does a self-declaration of trust require movement in the legal title?
No, it does not require any movement in the legal title.
How can constitution take place in testamentary trusts?
Via wills, where personal representatives of the testator ensure legal title is transferred to recipients of testamentary gifts and trustees.
What is required for registered land transfers under s52(1) LPA 1925?
Must be made by deed and registered with the land registry under s27 LRA 2002.
Legal title passes on registration
How are shares in a private company transferred?
By transferor signing a stock transfer and sending it to the company.
When does legal title pass for shares in a private company?
When the transferee is registered in the register of members.
How are choses in action, such as debts and money in a bank account, transferred?
By notice in writing to the debtor or bank (s136 LPA 1925).
What are the two methods of transferring chattels?
- By deed of gift
- Physical delivery of the chattel with evidence of intention to transfer.
How are cheques transferred according to the Bills of Exchange Act 1882?
By the transferor signing their name on the bank.
What happens once a trust is constituted regarding the settlor’s interest?
The settlor ceases to have any beneficial or legal interest in the trust property.
What is a failed constitution in the context of a gift?
If legal title has not passed to the donee, the gift is imperfect and the donor can change their mind.
This is established in Milroy v Lord.
What does the Rule in Milroy v Lord state?
The transferor must do everything necessary to effect the intended disposition by following the correct method for transferring legal title.
Equity will not perfect an imperfect gift, the settlor will not be interpreted as holding the property for the intended B
How does the certainty of intention relate to legal property transfer?
If legal property has not been transferred, the court needs strong evidence that the owner intended to take the onerous obligation of trusteeship and divest themselves of beneficial ownership.
Is it sufficient if trust property is vested in only one intended trustee?
Yes - it is sufficient that the trust property is vested in one of the intended trustees, including cases where the settlor is one of those trustees.
What is the Re Rose Principle?
It can perfect an imperfect inter vivos gift or an incompletely constituted trust if:
- The correct method of transfer is used
- The transferor has done everything in their own power to effect the transfer
- The documentation ended up in the hands of the person capable of effecting the legal transfer
What is the effect if the rule in Re Rose operates?
It means that the donor holds the property for the intended donee under a constructive trust.
How does putting the matter beyond control affect the transfer in equity?
If the transferor puts the matter beyond their control, this will affect the transfer in equity, as established in Mascall v Mascall.
What happens if the matter is still under an agent’s control?
The transferor still has control.
What is the significance of Pennington v Waine?
It will perfect an imperfect gift if it would be unconscionable to resile from it
What is Fortuitous Vesting?
Failure to protect may be cured if the intended recipient obtains legal title through another route.
Strong v Bird
Who is usually the intended recipient in Fortuitous Vesting?
The intended recipient of a gift is often the personal representative of the transferor’s estate.
What are the conditions for the Rule in Strong v Bird to apply?
- There must be an intention to make an immediate gift.
- The intention must continue until the donor’s death.
- The intended donee becomes an executor of the donor’s estate.
What is Donationes Mortis Causa?
When an individual contemplates their imminent death and wishes to leave their property to another person but does not have time to execute a will.
What are the conditions for a valid Donationes Mortis Causa?
- Gift made in contemplation of death.
- Gift is conditional on death.
- The donor must part with ‘dominion’ of the property by handing it or something which represents title to the done.
What is sufficient for title to pass in the case of a chattel?
Delivery with intention is sufficient for title to pass to the done.
What is required for other types of property in Donationes Mortis Causa?
A full transfer of legal title is not needed, but parting with control (dominion) is.
passbook, deeds to house, share certificates, cheques drawn up by 3Ps
