Chapter 3

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  1. Question 1 of 10

    1. Explain what is required by s 53(1)b) Law of Property Act 1925?

    • 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.

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  2. Question 2 of 10

    2. Explain the doctrine in Rochefoucauld v Boustead.

    • 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.

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  3. Question 3 of 10

    3. What was decided in Vandervell v IRC?

    • 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.

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  4. Question 4 of 10

    4. Sarah, the legal owner, declares herself trustee of her cottage. Identify which of the following is correct.

    • 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

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  5. Question 5 of 10

    5. Sarah directs her trustees to hold her equitable interest in shares on trust for her daughter, Jane. Identify which of the following is correct.

    • 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.

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  6. Question 6 of 10

    6. Sarah directs her trustee to transfer her equitable interest and the legal Interest (which the trustee holds as nominee) to her daughter, Jane. Identify which of the following is correct.

    • 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.

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  7. Question 7 of 10

    7. Sarah sets up a sub-trust of her equitable interest in shares in favour of her daughter, Jane. Sarah has active duties as trustee. Identify which of the following is correct.

    • 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.

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  8. Question 8 of 10

    8. What is the effect of non-compliance with s 53(1)(b) Law of Property Act 1925?

    • 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.

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  9. Question 9 of 10

    9. What is the effect of non-compliance with s 53(1)(c) Law of Property Act 1925?

    • 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.

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  10. Question 10 of 10

    10. Which type of trust will be exempt from s 53(1)(b) by reason of s 53(2) Law of Property Act 1925?

    • 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.

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