Professional Documents
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QUESTION 6 (b)
of
2020/2021, 2019/2020 and 8 (b) of 2018/2019
Answer
TAKE NOTE: The sample questions and names used here are from question 6 of
2019/2020. As stated earlier, all the questions on strict settlement are substantially
the same.
Generally, strict settlement is a deed, Will, agreement or any instrument under
which an interest in a land is transferred or limited in trust for successive
generations or other objects. Flowing from the above, it follows that the
fundamental purpose of a strict settlement is to perpetuate family estate and
guarantee successive beneficiaries.
Strict settlement is also governed by the Land Use Act 2004 being a form of
conveyancing. For instance, by Section 17 of the Property & Conveyancing Law
of Western Nigeria, 1959 and Section 7 of the Land Use Act of 1978, a person
below the age of 21 is not capable of holding land. However, by the provisions of
Section 29 (4) of the 1999 Constitution which is supreme, the material age is now
18 years. The position of the incapacity of an infant to hold land received judicial
pontification in the cases of Ishola v Onigbanjo and Registrar – General v Desai,
wherein the court held that any conveyance made to an infant is void.
However, under Section 7 (a) of the Land Use Act of 1978, a conveyance to an
infant can be made by way of a trust so that the infant becomes a beneficiary. A
resulting trust according to the court in the case of Admin-General v Acire, is also
created where land is conveyed to an adult and an infant as demonstrated by the
settlement by Eric Assor in favour of his 2nd wife, Mrs. Busola Eric-Assor and
her children. Thus, an infant below 21 years cannot benefit under a strict
settlement, except same is conveyed to a trustee for his benefit.
Where a trustee is appointed, he or she must act in the best interest of the
settlement/trust for the benefit of the beneficiary. In the case of Shodipo v Coker,
the court held that where a trustee under any instrument (including a strict
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settlement) misuses the property in his care, he/she liable to account to the
beneficiary (infant).
Furthermore, adult beneficiaries under a strict settlement who are holding
absolutely hold beneficially and can deal with the property, subject to the
provisions of the Land Use Act, 1978. Finally, in making of dispositions under a
strict settlement, the rule of perpetuity requires that the extensions as to
beneficiaries of the property should be reasonable. This is provided in Section 12 –
16 of the High Court Laws of Eastern Nigeria, 1963 and same was given
judicially anointing in the case of Coker v Coker. Thus, dispositions to grandsons
or great grandsons and beyond under a strict settlement will be void for being in
conflict with the rule against perpetuities.
In light of the above, all the parties are advised as follows:
a. The devise to Ndamati Eric-Assor is valid. She holds absolutely and can
deal with “Paradise on Earth Villa” subject to the Land Use Act.
b. The devise to the head-wife, Ogbotu Joy Eric-Assor is also valid. She can
deal with the property subject to the Land Use Act.
c. The devise to the second wife, Busola Eric-Assor and her children is also
very valid. Busola is to hold jointly with her children and they can deal with
the devised property subject to the Land Use Act.
d. In the first instance, the devise to Achama No.2, Akarekpa-Anwanima, Mrs.
Bianca Eric-Assor is not absolute. She is to hold for life or until remarriage.
She is therefore a trustee for the benefit of James Eric-Assor. Secondly, the
devise to James Eric-Assor’s son is also valid. However, the devise to his
grandson for life and to his great, great, great-grandson absolutely is not
valid. It offends the rule against perpetuities.
e. Bianca Eric-Assor is liable to account to James Eric-Assor for her (Bianca
Eric-Assor) mismanagement of the property and its proceeds and for leaving
it in a dilapidated condition.
f. The sale to Prof. Berepiki Omotola is void. She cannot give what she does
not have. This was the position in the case of Solomon v Mogaji.
g. Bianca Eric-Assor interest (life estate) was also terminated by virtue of her
marriage to Prof. Berepiki Omotola at the Marriage Registry of Port
Harcourt.
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QUESTION 6 (a) (draft)
of
2020/2021, 2019/2020 and 8 (a) of 2018/2019
Answer
TAKE NOTE: The sample questions and names used here are from question 6 of
2019/2020. As stated earlier, all the questions on strict settlement are substantially
the same.
Guide to drafting a Deed of Strict Settlement
Drafting a deed of strict settlement is essentially the same with other types of deed.
It has the following parts:
1. Commencement clause
2. Date clause
3. Party (Settlor’s) clause
4. Recital
5. Revocation clause
6. Disposition clause
7. Testimonium
8. Attestation clause
9. Franking
Commencement clause
The commencement clause shows us the type of deed that is being drafted. It is
prima facie evidence of the type of deed instrument binding parties. The
commencement clause of a strict settlement will read thus:
THIS DEED OF STRICT SETTLEMENT…
Date clause
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The date clause is a CONTINUATION of the commencement clause and so is
usually on the same line or forms one sentence with the commencement clause.
The date clause of a strict settlement will read thus:
Is made this day, 12th of September, 2022.
Settlor’s clause
In drafting the settlor’s clause, the following must be present: the FULL names of
the settlor, his address (including Local Government Areas and State), his positions
(as Settlor), a statement binding their successors, assigns and privies to the
transaction. Take note that the settlor’s clause continues immediately after the date
clause and NOT on a different line.
The settlor’s clause of a strict settlement will read thus:
… BY HIGH-CHIEF ERIC ASSOR, a native of Elelewon Town in
Oropotoma-Kingdom in Obio/Akpor Local Government Area of Rivers State
(herein after referred to as the SETTLOR), which expression shall wherein
the context so admit include his heirs, assigns, executors, administration and
other successors-in-title.
Recital
The recital shows that the settlor has a good title and why he wants to settle his
estate.
A recital is usually introduced with the word “WHEREAS”. Using our sample
question, the recital will read thus:
WHEREAS:
1. The settlor is the estate owner for his own use and benefit of the properties
settled under this deed of strict settlement.
2. The settlor being conscious of his obligations to the beneficiaries and objects
of his interest do hereby settle his real properties as follows:
Revocation clause
Under the revocation, the settlor expressly sets aside every other disposition made
by him prior to the strict settlement. Thus, the strict settlement takes precedence.
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The revocation clause of a strict settlement will read thus:
a. I REVOKE any disposition, whether testamentary or not made by me
prior to this strict settlement.
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It introduces the formal execution of the deed. This shows the assent of the settlor
to his intentions as expressed in the deed.
NOTE: The testimonium begins as a different paragraph and not as a continuation
of the habendum. Also, it begins with the phrase IN WITNESS WHEREOF…
Thus, the testimonium of a strict settlement from our question will be expressed
thus:
IN WITNESS WHEREOF I HIGH-CHIEF ERIC ASSOR set my hand and seal
the day and year first above written.
This is followed by the signature of the settlor under. E.g
____________________________
HIGH-CHIEF ERIC ASSOR
(SETTLOR)
Attestation
Under the attestation, at least two witnesses attest to the dispositions made by
HIGH-CHIEF ERIC ASSOR.
The attestation of a strict settlement reads thus:
SIGNED BY THE ABOVE NAMED
HIGH-CHIEF ERIC ASSOR as and for
His strict settlement, in the presence of us
Both being present at the same time, who
at his request and in his presence and before
each other, have our name as witnesses:
NAME: JOHN OKE
ADDRESS: NO 44 EBA ROAD, EGUSI STATE, NIGERIA
OCCUPATION: FISHING
SIGNATURE: HHHHH
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NAME: OJO PETER
ADDRESS: NO. 4 CHICKEN STEW, MOI MOI STATE, NIGERIA
OCCUPATION: HUNTER
SIGNATURE: PPPP
Franking
A deed is not prepared by a spirit. It is prepared by a human being. Thus, the
draftsman must also include his name, office address, contact details etc. This is
very important.
Thus, using our sample questions, our franking will read thus:
PREPARED BY:
AMOS ISAJINI
LIBERTYCHAMBERS
NO. 4 GRA PHASE 3,
PORT HARCOURT.
07056567899
esohwodesteve(a)gmail.
com
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(herein after referred to as the SETTLOR), which expression shall wherein the
context so admit include his heirs, assigns, executors, administration and other
successors-in-title.
WHEREAS:
3. The settlor is the estate owner for his own use and benefit of the properties
settled under this deed of strict settlement.
4. The settlor being conscious of his obligations to the beneficiaries and objects
of his interest do hereby settle his real properties as follows:
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HIGH-CHIEF ERIC ASSOR
(SETTLOR)
SIGNED BY THE ABOVE NAMED
HIGH-CHIEF ERIC ASSOR as and for
His strict settlement, in the presence of us
Both being present at the same time, who
at his request and in his presence and before
each other, have our name as witnesses:
NAME: JOHN OKE
ADDRESS: NO 44 EBA ROAD, EGUSI STATE, NIGERIA
OCCUPATION: FISHING
SIGNATURE: HHHHH
PREPARED BY:
AMOS ISAJINI
LIBERTYCHAMBERS
NO. 4 GRA PHASE 3,
PORT HARCOURT.
07056567899
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esohwodesteve(a)gmail.
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