Definition And Classification

Question 1

What is Professor Keaton definition of trust?

Answer 1

A trust is a relationship which arises wherever a person called the trustee is compelled in Equity to hold property whether real or personal, and whether by legal or equitable title for the benefit of some persons (of whom he may be one and who are termed cestuis que trust ) or for some object permitted by law, in such a way that the real benefit of the property accrues , not to the trustee, but to the beneficiaries or other object of the trust.

Question 2

What is the main characteristics of a trust

Answer 2

The property is vested in the trustees not for their own benefit , but for the benefit of the beneficiaries

Question 3

What should the trustee do?

Answer 3

Safeguard the property and apply it in the manner directed but also make it productive

Question 4

In case f land what will the trustee do to the land?

Money?

Answer 4

Let it

Invest it in shares and securities

Question 5

TRUST AND BAILMENT

When does bailment arise?

Answer 5

Where a chattel owners by A by A is with A’s permission placed in the temporary possession of B

Question 6

Bailment and trust is recognized by which statute respectively?

Answer 6

Common law and equity respectively

Question 7

What are the duties in comparison with Trust?

Answer 7

The duties of a Bailee is minimal compared to that of a trustee

Question 8

What property can chattel be used in bailment and trust?

Answer 8

Chattels only for bailment

Any property can be used fir trust

Question 9

Who is the trustee and bailie to the property?

Answer 9

Trustee is generally the legal owner of the trust property and the general property is vested in him
While the Bailee only has only a ‘special property ‘ in the chattel bailed the general property remaining in the bailor

Question 10

What happens when both both the trustee and Bailee sells the property in their possession?

Answer 10

The trustee selling the trust property can still confer a good title free from the interests of the beneficiaries on a bonafide purchaser without a notice of the trust while a bailee cannot confer a good title

Question 11

TRUST AND AGENCY

What is the first similarities btw agent and trustee ?

Answer 11

Agent like trustees must act personally in the business of the agency unless circumstances justify the delegation of their duties

Question 12

What rule applies in both cases

Answer 12

Delegatus non protest delagare

Question 13

As regards profit made what are the similarities btw an agent and a trustee?

Answer 13

They are both accountable for any profits made by them out of the property or in the execution of their duties

Question 14

What do both agents and trustee owe

Answer 14

They owe a fiduciary to their principal and beneficiaries respectively

Question 15

As regards differences what governs Trust and Agency

Answer 15

Equity and common law respectively

Question 16

As regards contractual relationship ?

Answer 16

Trustee and beneficiary, there is no contractual relationship btw them while the relationship btw agent and principal is purely contractual

Question 17

As regards liability

Answer 17

A trustee wouldn’t make a beneficiary liable for his action while it isn’t the case in the principal agent relationship

Question 18

As regards tracing what is the what is the differences?

Answer 18

A beneficiary can trace against a trustee and this revived money due to the beneficiary which the trustee has mixed with his own money while a principal has no right to trace against his agent so that if the agent has mixed the principal’s money with his own

Question 19

What will the principal rely on for the amount due

Answer 19

Rely on a personal action against the agent for amount due

Question 20

Case?

Answer 20

Lister v Stubbs

Question 21

TRUST AND CONTRACT

What governs them?

Answer 21

Equity and common law respectively

Question 22

When does a contract arise?

Answer 22

Arises from an agreement on consensus ad idea between the parties

Question 23

When does trust arise?

Answer 23

Arise from an agreement ( where a settlor covenants with trustees to settle property in the future) but often it will not( where a testator creates a trust by his will , or where a settlor declares himself a trustee of his property for the benefit of volunteer beneficiaries

Question 24

What is the right to enforce a contract?

Answer 24

A right in personal since generally action can be brought against the other contracting party of parties

Question 25

What is the right to enforce a trust?

Answer 25

Almost a right in ten , since in the event of a breach of trust, property can be recovered not only from the trustee but also from any other person to whom he has transferred the property, except a bona fide purchaser without notice of the trust

Question 26

THIRD PARTIES

At common law who could sue?

Answer 26

Only a party to a contract can sue on it

Question 27

This is due to which doctrine?

Answer 27

Doctrine of privity of contract

Question 28

What is the general rule

Answer 28

If a contract between A and B intended to confer a benefit to confer a benefit on C, C cannot sue to enforce that benefit