Unit 2.1

Question 1

Types of Property

Answer 1

Real property- freehold land

Personal property- chattels, ‘choses in action’ (intangible things recovered by bringing a claim in court), leasehold land

Question 2

How does the owner of a legal title of land transfer it?

Answer 2

Must execute a deed according to s52(1) Law of Property Act 1925

Question 3

What is a deed?

Answer 3

Satisfies s1 Law of Property (Misc) Act 1989

Question 4

What does s1 Law of Property (Misc) Act 1989 cover?

Answer 4

The requirements of a deed:
Document stated to be a deed or is stated to be signed as a deed

Person making deed signs document in presence of a witness who also signs it

Where land is registered, the deed is Form TR1 issued by Land Registry

Question 5

How do you transfer shares outside of the CREST system?

Answer 5

Transferor signs stock transfer form

Hands completed STF and share certificate to transferee

Transferee sends both documents to the company to be registered

NB: Legal transfer does not happen until transferee is registered

Question 6

How do you transfer shares within the CREST system?

Answer 6

Transfers recorded electronically on instructions of the shareholder without need to sign stock transfer form

Question 7

How do you transfer a chattel?

Answer 7

Passed by physical delivery of the asset to the transferee or by deed

Question 8

What case concerns the transfer of chattels by a deed?

Answer 8

Jaffa v Taylor Gallery Ltd

The transfer of a picture to trustees was valid without physical delivery as deed setting up trust vest title in them

Question 9

What does Milroy v Lord LJ Turner address?

Answer 9

Outlines the three ways a settlor may benefit another:

• Outright gift to the donee
• Transfer to trustees to hold on trust for the person to be benefited
• Declaration of self as trustee for the person to be benefited

Question 10

What are the three ways a settlor may benefit another? What case outlines this?

Answer 10

Outright gift to the donee

Transfer to trustees to hold on trust for the person to be benefited

Declaration of self as trustee for the person to be benefited

Milroy v Lord LJ Turner

Question 11

What are the similarities between outright gift and trust?

Answer 11

Transfer of the property happens via both

Question 12

How does outright gift differ from trust?

Answer 12

Intention of the donor- gift intends the donee to benefit without strings

Settlor creating a trust directs the trustee to hold on trust for benefit of someone else

Question 13

Benefits of making a gift?

Answer 13

Most are considered potentially exempt transfers (PETs)- if donor alive for 7yr+ afterwards, escapes tax

Question 14

Requirements of a valid git

Answer 14

Mental capacity (Re Beaney)

Intention (crucial at time of transfer)

Certainty of subject matter

Property must be transferred to the donee in the correct manner

Question 15

What is the ‘every effort’ test?

Answer 15

Milroy v Lord- where a donor has failed to transfer a legal title, the transfer may be regarded as complete in equity if the donor has put the property beyond his recall

Question 16

What does Richards v Delbridge cover?

Answer 16

The court will not save an invalid gift by categorising it as a successfully created trust

Question 17

Exception to Richards v Delbridge?

Answer 17

Strong v Bird

Question 18

What is the rule in Strong v Bird?

Answer 18

On death of intended donor, gift becomes a perfect gift and the donee can claim the property in priority to the entitled to the rest of the estate which the donor has left on his death

For this to apply:
The donor intends to make an immediate death but it is invalid as he fails to comply with formality

Must be immediate, not one in the future

Intention to give must continue unchanged until donor’s death (Re Gonin)

Question 19

What does Mascall v Mascall say?

Answer 19

Equity won’t assist a volunteer (someone who has received a gift)

Question 20

What is the relationship between Pennington v Waine and Re Rose?

Answer 20

PvW is the narrow interpretation of Re Rose

Question 21

How does promissory estoppel help a claimant?

Answer 21

Allows compensation to people who relied on a representation to their detriment (Pascoe v Turner)

Question 22

What happened in Pascoe v Turner?

Answer 22

Wife decorated/ maintained house after husband wet with mistress and said she could have it. He then changed his mind, and as he had not transferred title into estranged wife’s name she wasn’t entitled to the house