Law of Equity & Trust Essay Example | Topics and Well Written Essays - 3000 words

Law of Equity & Trust - Essay Example The new principles of equity are now in force since previous ones are old dated. The achievement of equity is the birth of Trust1. As far as the application of Trust Law is concerned, it should repose trust and confidence in some other person to manage his or her affairs. The law of equity manages relationships and trust provides modalities to handle a number of situations, family relationships, charities, pension funds etc2. Cardinal Principle According to the law of equity, a trust is legally enforceable by the beneficiaries against the trustees provided it is created with high degree of intention; certainty of subject as well as object (the case of Knight V Knight (1840)3can be referred here. Three elements in a trust are mandatory a) certainty of intention, which ensures that the duty of a trustee or trustees is clearly defined, the way intended by the testator. It differentiates transfer through trust instead of absolute gift. The second mandatory requirement is the certainty of subject matter (refers Palmer v Simmonds (1854)4 and the allowable beneficial interests (refers Boyce v Boyce (1849)5, Re Challoner Club Ltd (1997)6 and Margulies v Margulies (2000)7) are competent of being certain. This ensures precise scope of trustee’s Dr678uties under a trust. ... Street to be held on trust for my children and further that he shall receive a reasonable part of the profit in relation to the redevelopment of Lister Heights. The disposition in the will of Junaid is clear in terms of intended trust. It is true that the word ‘trust’ does not mean an imposition of trust in law (Tito v Waddell (No 2) (1977)9 may please be referred); there is secondary option in this respect. The subject matter is certain, assuming that Junaid likewise, the subject matter of the trust is certain, always assuming that the assets are in existence. Hence, there is no difficulty to confer interest given to the indentified persons in the will accordingly. The disposition will be operational under the Trust of Land and Appointment of Trustees Act 199610. Here in this case, Philip is the best friend of testator, whom Junaid had given the rights to possess the commercial property at 22 and 24 at Shipley Street to take care of the interest of his children. First, it is necessary to determine the nature of the trust affecting the two houses as this will help determine whether there is certainty of objects of the reversionary class. Please keep this in mind that the trustees have no authority to apportion the property held in trust amongst the children. However, it may divide it equally amongst the children in accordance with the disposition of will. Take the example of IRC v Broadway Cottages Trust (1955)11. The court of law focuses on the validity or invalidity of the duties as enumerated in the trust. The religion of a person does not matter in deciding the issue whether he or she be a sectarian in terms of catholic or protestant religion in his or her beliefs. The court while deciding the cases of trust will have to abide by the laws and the condition