Trust 1

Question 1

Westdeutch Landesbank v Islington

Answer 1

Brown-Wilkinson
1- operates on the conscience of the owner of the legal interest
2- cannot be ignorant to the facts alleged to affect his conscience
3- identifiable trust property
4- beneficiary has an equitable proprietary interest in the trust property

Question 2

Reed

Answer 2

Bribes for prosecution. Held to be trustee of bribe money
Rickett would say this is based on consent
Swaddling would argue it’s based on a personal obligation to return the money

Question 3

Barclays Bank v Quistclose

Answer 3

Money lent solely for the purpose of paying the dividend, separate bank accounts, bank was fully aware of the arrangement
Held: given on trust, the trust failed and so a secondary trust arose in favour of Quistclose

Question 4

Re Kayford

Answer 4

Consumer prepayments

Question 5

Twinsectra v Yardley

Answer 5

Lord Millet: trust was subject to the borrowers power/ duty to apply the money for a specific purpose- not at free disposal of the borrower

Question 6

Re Lehman Brothers

Answer 6

Account was subject to the regulation of LB. LBI were not in a position to treat the money as it pleased

Question 7

INC v Cooley

Answer 7

Director of the claimant company, architect in his own right, falsely represented that he was ill to fulfill the contract, company successfully claimed profits from the contract