LA3002 April ZA

LLB

Equity and Trusts

April 2023

You have FOUR HOURS AND 15 MINUTES in which to write your answers.

You must answer THREE of the following SIX questions.

You must answer all parts of a question unless otherwise stated.

© University of London 2023

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1. ‘The definition of “charity” is so vague that there really is no point in a
rule which attempts to distinguish between charitable and non-charitable
purposes trusts.’

Do you agree?

2. Ang’s trustees hold shares on trust for him absolutely. On 1st February,
he telephones them and instructs them to hold the shares on trust for
Bo. On 1st March, he telephones again saying that his previous
instructions were a joke, and that they are to transfer the shares
beneficially to Chang. The trustees execute a transfer of the shares and
put it in the post addressed to Chang. Before it reaches Chang, Ang dies
and it transpires that he has left the shares in his will to Den.

Advise Bo, Chang and Den.

Would it make any difference if Ang, on 25th February, had entered into
an oral contract to sell the shares to Eric?

3. The regular travellers on the London to Brighton train intend to form a

social club, although they do not want to go to much bother and are
happy with an unincorporated association. The assets of the club will
consist of annual subscriptions from members, donations from well-
wishers in collection boxes at train stations, a one-off donation of £5,000
from the train operator and the proceeds of raffles that they will hold
every month for all passengers on the train. It is intended to spend the
assets on staging social events and providing days out for members and
their families. The prospective members are anxious to know what would
happen to any surplus assets if the club were ever to close.

Advise them of the legal possibilities in this respect, and suggest what
special provisions (if any) should be included in the rules of the club to
meet them.

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4. Grace died in August 2019. Harry is the executor of her will. Grace
made her will in January 2019. It contains the following bequests:

(a) My cottage to my neighbour, Juliet.

(b) £100,000 to my executor to be distributed amongst my best former

students at Xavier’s College (those students to be judged by the current
Principal of the College).

(c) Half of my rare book collection to Sarah; the other half to my

executors, who shall permit any former colleague who has remained a
friend to purchase a book for its market value.

(d) Everything that is left to my nieces and nephews.

In March 2019, Grace sent Juliet an email. The email said that Juliet
would receive Grace’s cottage under Grace’s will, but that Grace wanted
the cottage to go to Grace’s childhood sweetheart, Kevin. As such, Juliet
should arrange for the cottage to be transferred to Kevin in the event
that Grace died. Juliet wrote with some questions about the plan, which
she said ‘makes me feel very uncomfortable’. Grace never replied to
that email.

Grace worked at a number of different schools. She was a teacher at

Xavier’s College from 1980 to 2000, where she taught approximately 50
students per year.

Grace had ten nieces and nephews, but three of those nieces and
nephews cannot be located as they have been estranged from the
family for over a decade.

Advise Harry.

5. ‘Tracing at law and tracing in equity have nothing in common. One is

restitutionary, the other seeks to facilitate the return of the beneficiaries’
hard-nosed property rights.’

Discuss.

6. Are all, or any, resulting trusts generated by the intention of the person
who becomes entitled under the resulting trust?

END OF PAPER

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