Try the multiple choice questions below to test your knowledge of this chapter.
Get Started!Correct. Feedback: C is the correct answer. The requirement of writing is now embodied in s 53(1)(b) of the Law of Property Act (LPA) 1925 which provides that a declaration of trust respecting land or an interest in land must be manifested and proved by some writing signed by some person able to declare the trust.
Incorrect. Feedback: C is the correct answer. The requirement of writing is now embodied in s 53(1)(b) of the Law of Property Act (LPA) 1925 which provides that a declaration of trust respecting land or an interest in land must be manifested and proved by some writing signed by some person able to declare the trust.
Correct. Feedback: A is the correct answer. The requirement of writing was introduced to prevent fraud and the courts will not allow it to be used as a cloak for fraud, as seen from cases like Rochefoucauld v Boustead.
Incorrect. Feedback: A is the correct answer. The requirement of writing was introduced to prevent fraud and the courts will not allow it to be used as a cloak for fraud, as seen from cases like Rochefoucauld v Boustead.
Correct. Feedback: B is the correct answer. Section 53(1)(c) of the LPA 1925 provides that a disposition of an equitable interest or trust subsisting at the time of the disposition must be in writing, signed by the person disposing of the same or by his agent thereunto lawfully authorised in writing. However, where the equitable owner of property held on trust directs the Trustee to transfer the property outright to the beneficiary, the court held in Vandervell v IRC that s 53(1)(c) will not apply.
Incorrect. Feedback: B is the correct answer. Section 53(1)(c) of the LPA 1925 provides that a disposition of an equitable interest or trust subsisting at the time of the disposition must be in writing, signed by the person disposing of the same or by his agent thereunto lawfully authorised in writing. However, where the equitable owner of property held on trust directs the Trustee to transfer the property outright to the beneficiary, the court held in Vandervell v IRC that s 53(1)(c) will not apply.
Correct. Feedback: C is the correct answer. A declaration of trust of land must be evidenced in writing and signed by the settlor as laid down in s 53(1)(b) LPA
Incorrect. Feedback: C is the correct answer. A declaration of trust of land must be evidenced in writing and signed by the settlor as laid down in s 53(1)(b) LPA
Correct. Feedback: A is correct. Sarah is disposing of her subsisting equitable interest, see Grey v IRC.
Incorrect. Feedback: A is correct. Sarah is disposing of her subsisting equitable interest, see Grey v IRC.
Correct. Feedback: B is correct. When both the legal and equitable interest are transferred to a third party, this is not a disposition of a subsisting equitable interest, see Vandervell v IRC.
Incorrect. Feedback: B is correct. When both the legal and equitable interest are transferred to a third party, this is not a disposition of a subsisting equitable interest, see Vandervell v IRC.
Correct. Feedback: B is correct. As Sarah has active duties, she is creating a genuine sub-trust of personal property.
Incorrect. Feedback: B is correct. As Sarah has active duties, she is creating a genuine sub-trust of personal property.
Correct. Feedback: B is correct. The trust will be upheld so long as it is not challenged in court where it cannot be enforced.
Incorrect. Feedback: B is correct. The trust will be upheld so long as it is not challenged in court where it cannot be enforced.
Correct. Feedback: C is correct. The disposition will be void, i.e. of no effect.
Incorrect. Feedback: C is correct. The disposition will be void, i.e. of no effect.
Correct. Feedback: B is the correct answer. The creation and operation of resulting trusts and constructive trusts are exempt.
Incorrect. Feedback: B is the correct answer. The creation and operation of resulting trusts and constructive trusts are exempt.