14/05/14 LAW OF TRUST (LAW 3711) 1
INTRODUCTION
EQUITY & TRUST II
LAW 3711
14/05/14 LAW OF TRUST (LAW 3711) 2
Maitland :
• “If we were asked what is the greatest and
most distinctive achievements p...
• It was said that the development of trust in
England is actually derived from nesting all
kinds of general ideas in part...
• So it was said that the development of trust in
England is actually derived from Roman
fideicommissum, Germanic Salmann ...
14/05/14 LAW OF TRUST (LAW 3711) 5
History
• Originally : the word trust was not used.
• The word ‘use’/’uses’ to denote t...
• As far as the trust is concerned the person
in which the property is vested is called
trustee. Trustee is obliged to hol...
• Reasons;
1)The owner is going on a war
2)Escape from Creditor.
3)Baron and Knight tried to hold title
without the need t...
14/05/14 LAW OF TRUST (LAW 3711) 8
• Land being conveyed to one man to be
held by him on behalf of or ‘to the use of’
anot...
14/05/14 LAW OF TRUST (LAW 3711) 9
• From end of fourteenth or early
fifteenth century – interference
from Chancellor.
• C...
14/05/14 LAW OF TRUST (LAW 3711) 10
• •Feoffees to uses (trustee)is the legal
owner.
• •Under common law, Cestui que trust...
14/05/14 LAW OF TRUST (LAW 3711) 11
• •Duty was imposed as a moral obligation
• •Enforced by the Court of Chancery
• •1536...
14/05/14 LAW OF TRUST (LAW 3711) 12
Concept
• A legal relationship created under the laws of
equity whereby property (the ...
• It does not fit neatly into the category of
obligations of proprietary rights but it shares
some characteristic of oblig...
14/05/14 LAW OF TRUST (LAW 3711) 14
Definition.
• No exact definition of trust.
• Trust expresses :
 Honour
Reliance
Ju...
14/05/14 LAW OF TRUST (LAW 3711) 15
• Underhill : A trust is an equitable obligation,
binding a person (who is called a tr...
14/05/14 LAW OF TRUST (LAW 3711) 16
Prof Keaton: Keaton’s
Law of Trust
• The relationship which arises whenever, a
person ...
14/05/14 LAW OF TRUST (LAW 3711) 17
• No exact definition.
• Covers all kind of situation including social
circumstances.
...
14/05/14 LAW OF TRUST (LAW 3711) 18
Development of Trust
• Trust has become a more highly developed
institution which has ...
14/05/14 LAW OF TRUST (LAW 3711) 19
Terminology
• Trust instrument
• Settlor
• Testator
• Beneficiary
• Trust property.
• ...
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Introduction

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  • It does not fit neatly into the category of obligations of proprietary rights but it shares some characteristic of obligations and some characteristic of proprietary rights.(Robert Pearce at 108)
    Basically there are three essential elements:
    A trust can only exist in relation to specific property
    Property must be held by trustees who have been the trust to whom the trustee owe their obligations
    There must be objects of the trust to whom the trust owe their obligations.( pg 108)
  • Introduction

    1. 1. 14/05/14 LAW OF TRUST (LAW 3711) 1 INTRODUCTION EQUITY & TRUST II LAW 3711
    2. 2. 14/05/14 LAW OF TRUST (LAW 3711) 2 Maitland : • “If we were asked what is the greatest and most distinctive achievements performed by Englishmen in the field of jurisdiction, I cannot think that we should have any better answer to give than this, namely the development from century to century of the trust idea.”
    3. 3. • It was said that the development of trust in England is actually derived from nesting all kinds of general ideas in particular institution.
    4. 4. • So it was said that the development of trust in England is actually derived from Roman fideicommissum, Germanic Salmann and the islamic waqf (the Crusades again, reinforced by St Francis’s visit to Egypt prior to the growth of gifts for pious purposes.(H.Patrick Glenn,Legal Traditions of the World Sustainable Diversity in Law, Oxford University, 200, at 236)
    5. 5. 14/05/14 LAW OF TRUST (LAW 3711) 5 History • Originally : the word trust was not used. • The word ‘use’/’uses’ to denote the concept of trust. • Example : Land is given to A with an undertaking that A will use the land for the use and benefit of B. • A cannot keep the land for his own benefit.
    6. 6. • As far as the trust is concerned the person in which the property is vested is called trustee. Trustee is obliged to hold the property for the benefit of other person : cestui que trust or beneficiaries • Land might be given to another person due to many reasons. This has no connection with sale and purchase. It has no valuable consideration.
    7. 7. • Reasons; 1)The owner is going on a war 2)Escape from Creditor. 3)Baron and Knight tried to hold title without the need to transfer it to the descendants
    8. 8. 14/05/14 LAW OF TRUST (LAW 3711) 8 • Land being conveyed to one man to be held by him on behalf of or ‘to the use of’ another for considerable time. • Land owner (feoffer) conveyed land to (feoffees to uses) directing them to hold the land for the benefit of other person /cestui que trust of feoffor himself
    9. 9. 14/05/14 LAW OF TRUST (LAW 3711) 9 • From end of fourteenth or early fifteenth century – interference from Chancellor. • Compel the feoffees to uses to carry out directions given to them - use it for the benefit of the Cestui que trust.
    10. 10. 14/05/14 LAW OF TRUST (LAW 3711) 10 • •Feoffees to uses (trustee)is the legal owner. • •Under common law, Cestui que trust has no title to the land and no protection to guide his interest in the land. • •Chancellor interfered to compel B to hold the land for the exclusive use and benefit of C.
    11. 11. 14/05/14 LAW OF TRUST (LAW 3711) 11 • •Duty was imposed as a moral obligation • •Enforced by the Court of Chancery • •1536, English Parliament enacted the Statute of Use – put an end to the separation of legal and equitable estates. • •Statute of Use was never repealed but the uses gave way to trust. • •Middle of 17th Century : started to enforce the second news and the it is called ‘trust’.
    12. 12. 14/05/14 LAW OF TRUST (LAW 3711) 12 Concept • A legal relationship created under the laws of equity whereby property (the corpus) is held by one party (the trustee), for the benefit of others (cestui que trust or beneficiaries) • Owner transfers property trustee • • beneficiary
    13. 13. • It does not fit neatly into the category of obligations of proprietary rights but it shares some characteristic of obligations and some characteristic of proprietary rights.(Robert Pearce at 108) • Basically there are three essential elements: 1)A trust can only exist in relation to specific property 2)Property must be held by trustees who have been the trust to whom the trustee owe their obligations 3)There must be objects of the trust to whom the trust owe their obligations.( pg 108)
    14. 14. 14/05/14 LAW OF TRUST (LAW 3711) 14 Definition. • No exact definition of trust. • Trust expresses :  Honour Reliance Justice Friendship Uniquely British institution
    15. 15. 14/05/14 LAW OF TRUST (LAW 3711) 15 • Underhill : A trust is an equitable obligation, binding a person (who is called a trustee) to deal with property over which he has control (which is called the trust property) either for the benefit of persons (who are called the beneficiaries or cestui que trust) or whom he may be one and any one whom may enforce the obligation or for a charitable purpose which may be enforced at the instance of the Attorney General or for some other purpose permitted by law though unenforceable.
    16. 16. 14/05/14 LAW OF TRUST (LAW 3711) 16 Prof Keaton: Keaton’s Law of Trust • The relationship which arises whenever, a person called a trustee is compelled in equity, to hold property whether real/personal and whether by legal or equitable title for the benefit of some persons (of whom he may be one and who are termed beneficiaries or for some object permitted by law, in such a way that the real benefit of the property accrues, not to the trust but to the beneficiaries or other object of trust.
    17. 17. 14/05/14 LAW OF TRUST (LAW 3711) 17 • No exact definition. • Covers all kind of situation including social circumstances. • Reasons: a) Compare the legal consequences of a trust and the related concept b) Identify the circumstances in which the one concept must exist at the exclusion of others c) To identify the ctcs in which trust may co-exist with the related concept, eg- contract and debts.
    18. 18. 14/05/14 LAW OF TRUST (LAW 3711) 18 Development of Trust • Trust has become a more highly developed institution which has until now is used for a wide variety of purposes. • All kind of trust; - Unit trust - pension scheme trust - Shares - trust out of cohabitation - Charities - unincorporated associatation
    19. 19. 14/05/14 LAW OF TRUST (LAW 3711) 19 Terminology • Trust instrument • Settlor • Testator • Beneficiary • Trust property. • Inter vivos • Real & Personal Property

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