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Flashcard 1377932021004

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Question
As you can see, the requirement that there must be an understanding that payment would be made may be implied. This is more likely in a commercial context. This principle was acknowledged in [...].
Answer
Re Casey's Patents [1892] 1 Ch 104

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As you can see, the requirement that there must be an understanding that payment would be made may be implied. This is more likely in a commercial context. This principle was acknowledged in Re Casey's Patents [1892] 1 Ch 104.

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Flashcard 1377933069580

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Question
The rule in Williams v Roffey only applies to promises to pay more.
Answer
Re Selectmove Ltd [1995] 1 WLR 474

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Flashcard 1377935953164

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Question
Merely carrying out a public duty imposed by the law will not amount to sufficiency of consideration.
Answer
Collins v Godefroy (1831) 1 B & Ad 950

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The principle in these circumstances is that merely carrying out a public duty imposed by the law will not amount to sufficiency of consideration. Collins v Godefroy (1831) 1 B & Ad 950

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Flashcard 1377939623180

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FACTS: Collins was subpoenaed by Godefroy to attend as a witness in an action. Collins subsequently brought an action against Godefroy, claiming a guinea a day as his fee for attendance. Assuming that Godefroy had expressly promised to pay the sum claimed as compensation for loss of time, was there any consideration for the promise? HELD: There was no consideration for the promise. The duty to attend was a duty imposed by law.
Answer
Collins v Godefroy (1831) 1 B & Ad 950

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Collins v Godefroy (1831) 1 B & Ad 950 FACTS: Collins was subpoenaed by Godefroy to attend as a witness in an action. Collins subsequently brought an action against Godefroy, claiming a guinea a day as his fee for attendance.

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Flashcard 1377941458188

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Question
The duty of a police officer is the prevention of crime and he is not under a duty to provide information to a private individual. In doing so he went beyond his public duty and thus provided consideration for the offer of reward.
Answer
England v Davidson (1840) 11 A & E 856

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Flashcard 1377945128204

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Question
FACTS: To maintain law and order, a substantial police presence was required inside the defendant's football ground and this involved a significant amount of police overtime. According to the police, their attendance at the request of the club amounted to 'special police services' for which, by statute, the defendants were obliged to pay. The club refused to pay for these services claiming that the police were merely carrying out their normal public duty in ensuring the maintenance of law and order and, therefore, they had provided no consideration for the promise of the defendants to pay for those services. HELD: The responsibility of the club was to take all reasonable steps to ensure that the game took place in conditions that did not occasion danger to any person or property. The attendance of the police was necessary to assist the club in the fulfilment of this duty, which went beyond the maintenance of law and order, and for which the club should pay.
Answer
Harris v Sheffield United FC [1988] QB 77

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Harris v Sheffield United FC [1988] QB 77 FACTS: To maintain law and order, a substantial police presence was required inside the defendant's football ground and this involved a significant amount of police overtime. According t

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Flashcard 1377946963212

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Question
Harris v Sheffield United FC [1988] QB 77
FACTS: To maintain law and order, a substantial police presence was required inside the defendant's football ground and this involved a significant amount of police overtime. According to the police, their attendance at the request of the club amounted to 'special police services' for which, by statute, the defendants were obliged to pay. The club refused to pay for these services claiming that the police were merely carrying out their normal public duty in ensuring the maintenance of law and order and, therefore, they had provided no consideration for the promise of the defendants to pay for those services. HELD: The responsibility of the club was [...]. The attendance of the police was necessary to assist the club in the fulfilment of this duty, which went beyond the maintenance of law and order, and for which the club should pay.
Answer
to take all reasonable steps to ensure that the game took place in conditions that did not occasion danger to any person or property

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merely carrying out their normal public duty in ensuring the maintenance of law and order and, therefore, they had provided no consideration for the promise of the defendants to pay for those services. HELD: The responsibility of the club was <span>to take all reasonable steps to ensure that the game took place in conditions that did not occasion danger to any person or property. The attendance of the police was necessary to assist the club in the fulfilment of this duty, which went beyond the maintenance of law and order, and for which the club should pay.</sp

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Flashcard 1377949846796

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FACTS: The parents of an illegitimate child separated and the father paid a neighbour £1 per week to look after the child. Subsequently, the mother wrote to the father to ask him to let her have the child and the £1 per week. The father agreed if: (a) the mother could prove that the child would be well and happy; and (b) that the child was allowed to decide for herself whether or not she wished to live with her mother. The child did wish to live with the mother and the father paid the £1 per week for seven months. At that point the mother married and the father refused to make any further payments. The mother sued for breach of contract and the father pleaded want of consideration. He maintained that the National Assistance Act 1974 s 42 imposed a duty on the mother of an illegitimate child to care for her child. Consequently, the father alleged that the mother was doing no more than she was required by the public duty imposed upon her by law. HELD by the Court of Appeal: the majority of the court, while acknowledging that the mother did owe an existing duty, found 'ample consideration' for the promise in the mother's undertaking to keep the child happy and to allow her to choose where she wished to live. This was over and above her public duty to maintain the child.
Answer
Ward v Byham [1956] 1 WLR 496

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Ward v Byham [1956] 1 WLR 496 FACTS: The parents of an illegitimate child separated and the father paid a neighbour £1 per week to look after the child. Subsequently, the mother wrote to the father to ask him to let

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Flashcard 1377953516812

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Question
A promise by A to perform a pre-existing contractual duty owed to B (as opposed to the actual performance of that duty) as valid consideration for a promise made by C.
Answer
Pao On v Lau Yiu Long [1980] AC 614

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A promise by A to perform a pre-existing contractual duty owed to B (as opposed to the actual performance of that duty) as valid consideration for a promise made by C.

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Flashcard 1377955351820

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Question
An agreement to do an act which the promisor is under an existing obligation to a third party to do, may quite well amount to valid consideration and does so in the present case: the promisee obtains the benefit of a direct obligation which he can enforce.
Answer
New Zealand Shipping Co v AM Satterthwaite & Co (The Eurymedon) [1975] AC 154

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Flashcard 1377957186828

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It is also clear from the case itself that the tender of a different chattel at the request of the creditor could amount to fresh consideration. The chattel may totally replace the money owing or may be tendered along with a partial payment.
Answer
Sibree v Tripp (1846) 15 M & W 23

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Flashcard 1377961118988

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Question
In a subsequent case, [ case ], the Court of Appeal considered the application of promissory estoppel in the context of part payment of a debt. The interesting point about this case is the approach taken by Arden LJ, one of the judges who heard the appeal. Her Ladyship seems to suggest that as long as the creditor agrees to accept part payment and the debtor makes the agreed part payment, then there will be sufficient reliance to invoke promissory estoppel.
Answer
Collier v P & MJ Wright (Holdings) Ltd [2007] EWCA Civ 1329

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In a subsequent case, Collier v P & MJ Wright (Holdings) Ltd [2007] EWCA Civ 1329, the Court of Appeal considered the application of promissory estoppel in the context of part payment of a debt. The interesting point about this case is the approach taken by Arden L

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Flashcard 1377964002572

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The issue of protest in particular, as outlined above by Kerr J in [ case ], proved critical in the case of North Ocean Shipping Co Ltd v Hyundai Construction Co Ltd and Another (The Atlantic Baron) [1979] QB 705. In this case, shipbuilders agreed to build a tanker for the shipping company for $30,950,000, payable in five instalments. The contract required the builders to open a reverse letter of credit for the repayment of instalments in the event of their default. After the first instalment had been paid, the dollar was devalued and the builders threatened not to deliver unless the remaining instalments were increased by 10 per cent. The owners were advised that there was no legal basis for the claim, but were anxious that they might lose a favourable charter with Shell if the ship were not finished on time, and in a telex dated 28 June 1973, they agreed to the increased payments 'to maintain an amicable relationship and without prejudice to our rights'. The builders did this and delivered the tanker; the owners took delivery without protest. Some eight months later, the owners claimed the return of the extra 10 per cent. It was suggested that they did not seek the return of the money sooner because they were concerned about the delivery of a sister ship (The Atlantic Baroness) also being built for them. However, the arbitrators found that this fear was groundless. It was held that, although the agreement to pay the extra money might initially have been voidable for economic duress, the fact that the shipping company waited eight months before protesting meant they lost their right to have the new contract for the increased payments set aside. They had, in effect, affirmed it.
Answer
The Sibeon and The Sibotre

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The issue of protest in particular, as outlined above by Kerr J in The Sibeon and The Sibotre, proved critical in the case of North Ocean Shipping Co Ltd v Hyundai Construction Co Ltd and Another (The Atlantic Baron) [1979] QB 705. In this case, shipbuilders agreed to build a

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Flashcard 1377965837580

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The issue of protest in particular, as outlined above by Kerr J in The Sibeon and The Sibotre, proved critical in the case of North Ocean Shipping Co Ltd v Hyundai Construction Co Ltd and Another (The Atlantic Baron) [1979] QB 705. In this case, shipbuilders agreed to build a tanker for the shipping company for $30,950,000, payable in five instalments. The contract required the builders to open a reverse letter of credit for the repayment of instalments in the event of their default. After the first instalment had been paid, the dollar was devalued and the builders threatened not to deliver unless the remaining instalments were increased by 10 per cent. The owners were advised that there was no legal basis for the claim, but were anxious that they might lose a favourable charter with Shell if the ship were not finished on time, and in a telex dated 28 June 1973, they agreed to the increased payments 'to maintain an amicable relationship and without prejudice to our rights'. The builders did this and delivered the tanker; the owners took delivery without protest. Some eight months later, the owners claimed the return of the extra 10 per cent. It was suggested that they did not seek the return of the money sooner because they were concerned about the delivery of a sister ship (The Atlantic Baroness) also being built for them. However, the arbitrators found that this fear was groundless. It was held that, although the agreement to pay the extra money might initially have been voidable for economic duress, the fact that [...] meant they lost their right to have the new contract for the increased payments set aside. They had, in effect, affirmed it.
Answer
the shipping company waited eight months before protesting

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tlantic Baroness) also being built for them. However, the arbitrators found that this fear was groundless. It was held that, although the agreement to pay the extra money might initially have been voidable for economic duress, the fact that <span>the shipping company waited eight months before protesting meant they lost their right to have the new contract for the increased payments set aside. They had, in effect, affirmed it.<span><body><html>

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Flashcard 1377968721164

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Question
In [case] Lord Scarman laid down these guidelines which can be extrapolated from the above quote. Did the party alleging duress:
1. protest;
2. have an alternative course open to him such as an adequate legal remedy;
3. acquire independent legal advice; and
4. take steps to avoid the new contract as soon as was possible?
Answer
Pao On v Lau Yiu Long [1980] AC 614

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In Pao On v Lau Yiu Long [1980] AC 614 Lord Scarman laid down these guidelines which can be extrapolated from the above quote. Did the party alleging duress: 1. protest; 2. have an alternative course open to him suc

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Flashcard 1377970556172

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Question
In Pao On v Lau Yiu Long [1980] AC 614 Lord Scarman laid down these guidelines which can be extrapolated from the above quote. Did the party alleging duress: (4)
Answer
1. protest;
2. have an alternative course open to him such as an adequate legal remedy;
3. acquire independent legal advice; and
4. take steps to avoid the new contract as soon as was possible?

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In Pao On v Lau Yiu Long [1980] AC 614 Lord Scarman laid down these guidelines which can be extrapolated from the above quote. Did the party alleging duress: 1. protest; 2. have an alternative course open to him such as an adequate legal remedy; 3. acquire independent legal advice; and 4. take steps to avoid the new contract as soon as was possible?

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Flashcard 1377973439756

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In [ case ], the plaintiff's ship was 'blacked' by a trade union and, in order to secure its release the plaintiff paid, inter alia, the sum of $6,480 to ITWF's welfare fund. The House of Lords held that the agreement was brought about by economic duress and allowed the agreement to be set aside, and the money was returned.
Answer
Universe Tankships Inc of Monrovia v International Transport Workers' Federation (The Universe Sentinel) [1983] 1 AC 366

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In Universe Tankships Inc of Monrovia v International Transport Workers' Federation (The Universe Sentinel) [1983] 1 AC 366, the plaintiff's ship was 'blacked' by a trade union and, in order to secure its release the plaintiff paid, inter alia, the sum of $6,480 to ITWF's welfare fund. The House of Lords h

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Flashcard 1377977109772

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FACTS: The plaintiff contracted to erect stands at Olympia for the defendant. A week before the exhibition, the plaintiff's workman went on strike, refusing to return to work until a pay demand was met. The plaintiff told the defendant that, unless the defendant paid an additional £4,500, the contract would be cancelled. The plaintiff made it clear that the amount to be paid was to be in addition to the contract price. The defendant paid the amount demanded by the plaintiff so as to get the contract performed: the cancellation of the contract would have caused serious damage to the defendant's economic interests. However, the defendant then deducted this figure from the contract price paid to the plaintiff. The plaintiff then claimed the balance. HELD by the Court of Appeal: Since the cancellation of the contract would have caused serious damage to the defendant's economic interests, they had no choice but to pay the sum demanded by the plaintiff and so it was paid under duress. The plaintiff was therefore not entitled to the extra £4,500 which the defendant had paid under economic duress. Importantly, the defendant acted sufficiently promptly by deducting the extra £4,500 from the contract price thereby avoiding the new agreement – contrast this with the actions of the ship owners in The Atlantic Baron [1979].
Answer
B & S Contracts and Design Ltd v Victor Green Publications Ltd [1984] ICR 419

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B & S Contracts and Design Ltd v Victor Green Publications Ltd [1984] ICR 419 FACTS: The plaintiff contracted to erect stands at Olympia for the defendant. A week before the exhibition, the plaintiff's workman went on strike, refusing to return to work until a pay

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Flashcard 1377979993356

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Question
Unfortunately, in [ case ] the court failed to address the issue of where the dividing line between legitimate and illegitimate pressure lies, although Lord Scarman did give some assistance by stating that pressure may be illegitimate if what is threatened is in itself unlawful. On the other hand, Lord Scarman was careful to point out that duress can exist even if the threat is one of lawful action but the way in which the pressure is exerted is, in itself, illegitimate.
Answer
The Universe Sentinel

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Unfortunately, in The Universe Sentinel the court failed to address the issue of where the dividing line between legitimate and illegitimate pressure lies, although Lord Scarman did give some assistance by stating that press

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Flashcard 1377981828364

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Question
Unfortunately, in The Universe Sentinel the court failed to address the issue of where the dividing line between legitimate and illegitimate pressure lies, although Lord Scarman did give some assistance by stating that pressure may be illegitimate if [...]. On the other hand, Lord Scarman was careful to point out that duress can exist even if the threat is one of lawful action but the way in which the pressure is exerted is, in itself, illegitimate.
Answer
what is threatened is in itself unlawful

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ely, in The Universe Sentinel the court failed to address the issue of where the dividing line between legitimate and illegitimate pressure lies, although Lord Scarman did give some assistance by stating that pressure may be illegitimate if <span>what is threatened is in itself unlawful. On the other hand, Lord Scarman was careful to point out that duress can exist even if the threat is one of lawful action but the way in which the pressure is exerted is, in itself,

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Flashcard 1377984711948

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Question
Here, the plaintiff, a firm of road hauliers, contracted with the defendants to deliver cartons of basketware to various branches of Woolworths throughout the UK. A manager of the plaintiff's firm fixed the contract price at a rate of £1.10 per carton, based on an estimate that each load would consist of between 400 and 600 cartons. The first load fell significantly below his estimates, comprising only 200 cartons. The manager then refused to take any further loads unless the defendant agreed to renegotiate the contract price to a minimum of £440 per load. The defendant, a small organisation, was heavily reliant on the Woolworths contract and unable to find another carrier, so reluctantly agreed to pay the imposed minimum charge. At a later stage, the defendant refused to pay the minimum charge and, when sued for the transport charges, lodged a claim of economic duress as a defence. It was held that, where a party has no alternative but to accept revised terms that were detrimental to its interest, this amounted to economic duress that vitiated the apparent consent to the re-negotiated terms.
Answer
Atlas Express v Kafco Ltd [1989] 1 All ER 641

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Atlas Express v Kafco Ltd [1989] 1 All ER 641. Here, the plaintiff, a firm of road hauliers, contracted with the defendants to deliver cartons of basketware to various branches of Woolworths throughout the UK. A manager of the

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Flashcard 1377986546956

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Question
Atlas Express v Kafco Ltd [1989] 1 All ER 641.
Here, the plaintiff, a firm of road hauliers, contracted with the defendants to deliver cartons of basketware to various branches of Woolworths throughout the UK. A manager of the plaintiff's firm fixed the contract price at a rate of £1.10 per carton, based on an estimate that each load would consist of between 400 and 600 cartons. The first load fell significantly below his estimates, comprising only 200 cartons. The manager then refused to take any further loads unless the defendant agreed to renegotiate the contract price to a minimum of £440 per load. The defendant, a small organisation, was heavily reliant on the Woolworths contract and unable to find another carrier, so reluctantly agreed to pay the imposed minimum charge. At a later stage, the defendant refused to pay the minimum charge and, when sued for the transport charges, lodged a claim of economic duress as a defence. It was held that, where a party [...], this amounted to economic duress that vitiated the apparent consent to the re-negotiated terms.
Answer
has no alternative but to accept revised terms that were detrimental to its interest

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reluctantly agreed to pay the imposed minimum charge. At a later stage, the defendant refused to pay the minimum charge and, when sued for the transport charges, lodged a claim of economic duress as a defence. It was held that, where a party <span>has no alternative but to accept revised terms that were detrimental to its interest, this amounted to economic duress that vitiated the apparent consent to the re-negotiated terms.<span><body><html>

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Flashcard 1377988644108

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Question
A subsequent example of an illegitimate threat can be seen in [ case ]. Here the court held that threats to withhold deliveries when under a contractual obligation to prevent delay amounted to illegitimate threats. It was held that it would be unrealistic to expect the other party to seek a mandatory injunction because of the delay of six weeks it would take for Carillion to seek such an injunction. The court held that Carillion had little practical choice but to submit to the illegitimate threats.
Answer
Carillion Construction Ltd v Felix (UK) [2001] BLR 1

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A subsequent example of an illegitimate threat can be seen in Carillion Construction Ltd v Felix (UK) [2001] BLR 1. Here the court held that threats to withhold deliveries when under a contractual obligation to prevent delay amounted to illegitimate threats. It was held that it would be unrealisti

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Flashcard 1377991527692

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Contrast the behaviour of the wrongdoers in the above cases to that of the defendants in [ case ]. CTN bought cigarettes from Gallaher under a long-standing contract, with each purchase being a separate transaction. Gallaher regularly gave credit to CTN. A consignment of cigarettes worth £17,000 due to be delivered was stolen from a warehouse and there was a disagreement about which party bore the risk. It later became clear that the risk was in fact with Gallaher. However, before it was established that the risk was with Gallaher, one of their representatives made it clear that if CTN did not pay the £17,000 all credit facilities would be withdrawn. CTN decided that paying was the lesser of two evils. They later sought to recover on the grounds that they had only paid as a result of economic duress. It was held that the claim must fail. The threat to remove credit facilities was coercive but not improper. The defendants were using the threat as a means of getting money they believed was due to them and not as a means of extorting money they knew not to be due.
Answer
CTN Cash and Carry Ltd v Gallaher Ltd [1994] 4 All ER 714

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Contrast the behaviour of the wrongdoers in the above cases to that of the defendants in CTN Cash and Carry Ltd v Gallaher Ltd [1994] 4 All ER 714. CTN bought cigarettes from Gallaher under a long-standing contract, with each purchase being a separate transaction. Gallaher regularly gave credit to CTN. A consignment of cigarette

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Flashcard 1377993362700

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Question
Contrast the behaviour of the wrongdoers in the above cases to that of the defendants in CTN Cash and Carry Ltd v Gallaher Ltd [1994] 4 All ER 714. CTN bought cigarettes from Gallaher under a long-standing contract, with each purchase being a separate transaction. Gallaher regularly gave credit to CTN. A consignment of cigarettes worth £17,000 due to be delivered was stolen from a warehouse and there was a disagreement about which party bore the risk. It later became clear that the risk was in fact with Gallaher. However, before it was established that the risk was with Gallaher, one of their representatives made it clear that if CTN did not pay the £17,000 all credit facilities would be withdrawn. CTN decided that paying was the lesser of two evils. They later sought to recover on the grounds that they had only paid as a result of economic duress. It was held that the claim must fail. The threat to remove credit facilities was coercive but not improper. The defendants were using the threat as [...].
Answer
a means of getting money they believed was due to them and not as a means of extorting money they knew not to be due

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er sought to recover on the grounds that they had only paid as a result of economic duress. It was held that the claim must fail. The threat to remove credit facilities was coercive but not improper. The defendants were using the threat as <span>a means of getting money they believed was due to them and not as a means of extorting money they knew not to be due.<span><body><html>

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Flashcard 1377995459852

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Finally, for an example of an unlawful threat that did not constitute duress, see [ case ]. In this case, DSND threatened to suspend its work under the contract until Petroleum Geo's provision of insurance and indemnities in respect of the contract was clarified. Clearly this amounted to a threatened breach of contract. However, Dyson J decided that, even if it amounted to a breach which coerced Petroleum Geo, DSND's threat was not illegitimate pressure, rather it was: … reasonable behaviour by a contractor acting bona fide in a very difficult situation.
Answer
DSND Subsea Ltd v Petroleum Geo Services ASA [2000] BLR 530

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Finally, for an example of an unlawful threat that did not constitute duress, see DSND Subsea Ltd v Petroleum Geo Services ASA [2000] BLR 530. In this case, DSND threatened to suspend its work under the contract until Petroleum Geo's provision of insurance and indemnities in respect of the contract was clarified. Clearly th

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A contract could be avoided where there is a threat to seize the owner's property or to damage it. Like economic duress, the 'but for' test of causation will be applied.
Answer
The Siboen and The Sibotre

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The effect of duress (whether it is duress to the person, economic duress or duress to goods) is to make the contract voidable and that the proper remedy is one of rescission.
Answer
Pao On v Lau Yiu Long

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Economic duress was first given formal recognition in [ case ].
Answer
The Siboen and the Sibotre [1976] 1 Lloyd's Rep 293

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Economic duress was first given formal recognition in Occidental Worldwide Investment Corp. v Skibs A/s Avanti, Skibs A/s Glarona, Skibs A/s Navalis (The Siboen and the Sibotre) [1976] 1 Lloyd's Rep 293.

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Facts: In August 1970 the defendants, owners of two tankers, chartered them to the plaintiffs for three years at a rate of 4.40 USD per ton per month. In 1971 the defendants were informed that the plaintiffs had no substantial assets, had suffered enormous losses, were dependent upon a third party’s support for survival and that the third party was willing to let them go into liquidation if the hire rates were not reduced. These statements were untrue. In August 1972 the defendants signed addenda (variation agreements) to the charterparties that the hire rate would be reduced substantially and then after a further dispute the hire price was further reduced. Some time later, the defendant discovered that the plaintiffs were making substantial profits on the vessels. The defendants gave the plaintiffs the option to revert to the original hire rate or of cancelling the charters. When the plaintiffs refused both options the defendants withdrew the vessels in May 1973. The plaintiffs claimed damages from the defendants on the ground that the vessels had been wrongfully withdrawn. The defendants claimed that they were entitled to the rescission of the addenda on the ground of fraudulent and innocent misrepresentation or duress. The court found that the plaintiffs were liable for fraudulent and innocent misrepresentation but that although the defendants were acting under pressure when they signed the addenda this was not such coercion as to amount to duress.
Answer
Occidental Worldwide Investment Corp. v Skibs A/s Avanti, Skibs A/s Glarona, Skibs A/s Navalis (The Siboen and the Sibotre) [1976] 1 Lloyd's Rep 293

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Occidental Worldwide Investment Corp. v Skibs A/s Avanti, Skibs A/s Glarona, Skibs A/s Navalis (The Siboen and the Sibotre) [1976] 1 Lloyd's Rep 293 Facts: In August 1970 the defendants, owners of two tankers, chartered them to the plaintiffs for three years at a rate of 4.40 USD per ton per month. In 1971 the defendants were informe

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Facts: By a shipbuilding contract the builders agreed to build a tanker for the owners, for $30,950,000 payable in five instalments. The contract required the builders to open a reverse letter of credit for the repayment of instalments in the event of their default. After the first instalment had been paid, the dollar was devalued and the builders threatened not to deliver unless the remaining instalments were increased by 10 per cent. The owners were advised that there was no legal basis for the claim, but were anxious that they might lose a favourable charter with Shell if the ship were not finished on time, and in a telex dated 28 June 1973, they agreed to the increased payments, ‘to maintain an amicable relationship and without prejudice to our rights.’ The builders did this and delivered the tanker; the owners took delivery without protest. Some eight months later the owners claimed the return of the 10 per cent extra. It was suggested that they did not seek the return of the money sooner because they were concerned about the delivery of a sister ship (The Atlantic Baroness) also being built for them. However, the arbitrators found that this fear was groundless. It was held that although the agreement to pay the extra money might initially have been voidable for economic duress, the fact that the shipping company waited eight months before taking any action, meant they had affirmed it.
Answer
North Ocean Shipping Co Ltd v Hyundai Construction Co Ltd and Another (The Atlantic Baron) [1979] QB 705

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North Ocean Shipping Co Ltd v Hyundai Construction Co Ltd and Another (The Atlantic Baron) [1979] QB 705 Facts: By a shipbuilding contract the builders agreed to build a tanker for the owners, for $30,950,000 payable in five instalments. The contract required the builders to open a reverse

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North Ocean Shipping Co Ltd v Hyundai Construction Co Ltd and Another (The Atlantic Baron) [1979] QB 705
Facts: By a shipbuilding contract the builders agreed to build a tanker for the owners, for $30,950,000 payable in five instalments. The contract required the builders to open a reverse letter of credit for the repayment of instalments in the event of their default. After the first instalment had been paid, the dollar was devalued and the builders threatened not to deliver unless the remaining instalments were increased by 10 per cent. The owners were advised that there was no legal basis for the claim, but were anxious that they might lose a favourable charter with Shell if the ship were not finished on time, and in a telex dated 28 June 1973, they agreed to the increased payments, ‘to maintain an amicable relationship and without prejudice to our rights.’ The builders did this and delivered the tanker; the owners took delivery without protest. Some eight months later the owners claimed the return of the 10 per cent extra. It was suggested that they did not seek the return of the money sooner because they were concerned about the delivery of a sister ship (The Atlantic Baroness) also being built for them. However, the arbitrators found that this fear was groundless. It was held that although the agreement to pay the extra money might initially have been voidable for economic duress, the fact that the shipping company waited [...] before taking any action, meant they had affirmed it.
Answer
eight months

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ing built for them. However, the arbitrators found that this fear was groundless. It was held that although the agreement to pay the extra money might initially have been voidable for economic duress, the fact that the shipping company waited <span>eight months before taking any action, meant they had affirmed it.<span><body><html>

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Facts: The plaintiff’s ship was ‘blacked’ by a trade union, ITF and was unable to leave port as a consequence. In order to secure its release the plaintiff owner agreed, amongst other things, to pay the sum of $6,480 to ITWF’s welfare fund. The ship was allowed to leave after making this and other concessions and the owners sought to recover the money paid to the fund on the grounds that it had been paid under duress. The question the House of Lords had to consider was whether the action of ‘blacking’ the ship fell within the definition of a ‘trade dispute’ under The Trade Union and Labour Relations Act 1974. If it did, the ITWF were protected from court action. It was held that the demand for payment into the welfare fund was not connected with a ‘trade dispute’ and therefore the action of ‘blacking’ the ship to this end was illegitimate. Consequently, the agreement was deemed to have been brought about by economic duress and was set aside.
Answer
Universe Tankships Inc. of Monrovia Appellants v International Transport Workers Federation and Others Respondents HL (The Universe Sentinel) [1983] 1 AC 366

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Universe Tankships Inc. of Monrovia Appellants v International Transport Workers Federation and Others Respondents HL (The Universe Sentinel) [1983] 1 AC 366 Facts: The plaintiff’s ship was ‘blacked’ by a trade union, ITF and was unable to leave port as a consequence. In order to secure its release the plaintiff owner agreed, amongst other th

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Facts: Petroleum Geo Services ('PGS') engaged DSND Subsea Limited ('DSND'), a professional diving operation, to carry out works in the North Sea constructing subsea structures. The contract was based on an assumption that the risers (pipes used to transfer produced fluids from the seabed to the surface facilities or lift gas), would have already been installed by PGS. DSND was to have full responsibility for the rest of the subsea system. Later, it transpired that the risers would have to be installed after the subsea system was in place. DSND was concerned about several issues and in particular, about the insurance that was in place. They thought that they would not be covered if they proceeded with the installation without further changes to the insurance and refused to continue with the work. Eventually, a memorandum of understanding ('MOU') and a memorandum of agreement ('MOA') were entered into which set out various changes to DSND’s payment and acknowledged that the risers were to be installed after the subsea system which brought DSND within insurance cover. After the risers were installed, PGS then informed DSND the contract was terminated on the basis of DSND's 'serious breach of contract'. PGS argued that both the MOU and MOA should be set aside for economic duress. The economic duress point was considered as a preliminary issue by the court.
Answer
DSND Subsea Limited (Formerly known as DSND Oceantech Limited) v Petroleum Geo Services ASA, PGS Offshore Technology AS [2000] BLR 530

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DSND Subsea Limited (Formerly known as DSND Oceantech Limited) v Petroleum Geo Services ASA, PGS Offshore Technology AS [2000] BLR 530 Facts: Petroleum Geo Services ('PGS') engaged DSND Subsea Limited ('DSND'), a professional diving operation, to carry out works in the North Sea constructing subsea structures. The contr

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Facts: Mitras had agreed to be Adam Opel’s sole supplier in the United Kingdom of bumper mounts for a particular model of van that Adam Opel manufactured. Adam Opel gave notice to Mitras that the contract would be terminated. Mitras then threatened to suspend supplies immediately unless it was paid compensation, comprising an increased price for each bumper, payment of certain development costs incurred by Mitras and the reversal of price concessions agreed at the start of the contract. Eventually Adam Opel agreed to Mitras’s terms in order to ensure continued supply. Once the final bumper had been supplied, Adam Opel claimed recovery of the monies paid to Mitras under the compensation agreement. Opel submitted that the agreement was unenforceable because it had been made under duress and because there had been no consideration for it. Mitras argued that its claim to compensation was made in good faith, being based on a genuine belief that it was entitled to it. Judgment was given for Adam Opel. The agreement had been made under economic duress.
Answer
Adam Opel GmbH v Mitras Automotive (UK) Ltd Costs [2007] EWHC 3481 (QB)

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Adam Opel GmbH v Mitras Automotive (UK) Ltd Costs [2007] EWHC 3481 (QB) Facts: Mitras had agreed to be Adam Opel’s sole supplier in the United Kingdom of bumper mounts for a particular model of van that Adam Opel manufactured. Adam Opel gave notice to Mitras

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A threat to breach contract may constitute duress.
Answer
B & S Contracts and Design Ltd v Victor Green Publications Ltd [1984] ICR 419

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A threat to breach contract may constitute duress. B & S Contracts and Design Ltd v Victor Green Publications Ltd [1984] ICR 419

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Facts: The plaintiff contracted to erect stands at Olympia for the defendant. A week before the exhibition the plaintiff’s workman went on strike, refusing to return to work until a pay demand was met. The plaintiff told the defendant that unless the defendant paid an additional £4,500 the contract would be cancelled. The plaintiff made it clear that the amount to be paid was to be in addition to the contract price. The defendant paid the amount demanded as the cancellation of the contract would have caused serious damage to the defendant's economic interests. At the end of the contract, the defendant deducted the £4,500 from the contract price. The plaintiff claimed the balance. It was held that the plaintiff had agreed to make the extra payment under duress.
Answer
B & S Contracts and Design Ltd v Victor Green Publications Ltd [1984] ICR 419

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B & S Contracts and Design Ltd v Victor Green Publications Ltd [1984] ICR 419 Facts: The plaintiff contracted to erect stands at Olympia for the defendant. A week before the exhibition the plaintiff’s workman went on strike, refusing to return to work until a pay

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Facts: The plaintiff, a firm of road hauliers, contracted with the defendants to deliver cartons of basket ware to various branches of Woolworths throughout the UK. A manager of the plaintiff’s firm fixed the contract price at a rate of £1.10 per carton, based on an estimate that each load would consist of between 400 and 600 cartons. The first load fell significantly below his estimates, comprising of only 200 cartons. The manager then refused to take any further loads unless the defendant agreed to renegotiate the contract price to a minimum of £440 per load. The defendant, a small organisation, was heavily reliant on the Woolworths contract and unable to find another carrier, so reluctantly agreed to pay the imposed minimum charge. At a later stage, the defendant refused to pay. The plaintiff sued and the defendant argued economic duress as a defence. It was held that where a party has no alternative but to accept revised terms that were detrimental to its interest, this amounted to economic duress that vitiated the apparent consent to the re-negotiated terms.
Answer
Atlas Express Ltd v Kafco (Importers and Distributors) Ltd [1989] QB 833

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Atlas Express Ltd v Kafco (Importers and Distributors) Ltd [1989] QB 833 Facts: The plaintiff, a firm of road hauliers, contracted with the defendants to deliver cartons of basket ware to various branches of Woolworths throughout the UK. A manager of the plai

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Facts: CTN bought cigarettes from Gallaher under a long-standing contract, with each purchase being a separate transaction. Gallaher regularly gave credit to CTN. A consignment of cigarettes worth £17,000 due to be delivered was stolen from a warehouse and there was a disagreement about which party bore the risk. It later became clear that the risk was in fact with Gallaher but before this a representative of Gallaher informed CTN that if CTN did not the pay the £17,000 all credit facilities would be withdrawn. CTN decided that paying was the lesser of two evils. CTN later sought to recover the money paid on the grounds of economic duress. It was held that the threat to remove credit facilities was coercive but not improper. The defendants were using the threat as a means of getting money they believed was due to them and not as a means of extorting money they knew not to be due.
Answer
CTN Cash and Carry Limited v Gallaher Limited [1994] 4 All ER 714

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CTN Cash and Carry Limited v Gallaher Limited [1994] 4 All ER 714 Facts: CTN bought cigarettes from Gallaher under a long-standing contract, with each purchase being a separate transaction. Gallaher regularly gave credit to CTN. A consignment of cigare

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Facts: The plaintiffs carried on the business of a garage and petrol filling station. In 1969 the plaintiffs were in financial difficulties and subject to a contract whereby they had to accept petrol supplies exclusively from the defendants. Contrary to the independent advice of their solicitors, the plaintiffs entered into a transaction with the defendants whereby the plaintiffs granted a lease of their property to the defendants at a peppercorn rent plus a lump sum of £35,000, representing the market value of the lease. As part of the agreement, the defendants granted a lease-back of the property to the plaintiffs for 21 years at a rent of £2,250 per annum, subject to a right to terminate after seven or fourteen years and requiring the plaintiffs to accept all the petrol for their business from the defendants. With the plaintiffs' concurrence the defendants converted the property into a self-service filling station at a cost of £19,000. In 1979, the plaintiffs claimed a declaration that the transaction was voidable for duress (amongst other claims). It was held that there was no duress.
Answer
Alec Lobb (Garages) Ltd. and Others v Total Oil Great Britain Ltd. [1983] 1 WLR 87

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Alec Lobb (Garages) Ltd. and Others v Total Oil Great Britain Ltd. [1983] 1 WLR 87 Facts: The plaintiffs carried on the business of a garage and petrol filling station. In 1969 the plaintiffs were in financial difficulties and subject to a contract whereby they had to

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Facts: The defendant was a member of 22 SAS Regiment. His squadron was told that all members who wanted to remain in the regiment would be required to sign confidentiality contracts, failing which they would be returned to unit ('RTU'). Involuntary RTU was normally imposed as a penalty for some disciplinary offence or on the ground of professional unsuitability for the SAS. It involved exclusion from the social life of the regiment and loss of its higher rates of pay. The defendant asked a colleague whether he could obtain legal advice on the contract and had been told that he could not. He signed the contract. The defendant later left the army and entered into a contract with a publisher to publish his story. As a result the Attorney-General commenced proceedings in New Zealand for breach of contract, claiming an injunction, damages and an account of profits. In his defence the defendant pleaded amongst other things that he had signed the contract under military orders and that it had been obtained by duress. It was held that the threat of RTU was lawful and justifiable as anyone unwilling to accept the obligation of confidentiality was unsuitable for the SAS in any event.
Answer
R v Attorney General of England and Wales [2003] UKPC 22, [2003] EMLR 24

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R v Attorney General of England and Wales [2003] UKPC 22, [2003] EMLR 24 Facts: The defendant was a member of 22 SAS Regiment. His squadron was told that all members who wanted to remain in the regiment would be required to sign confidentiality contracts, fai

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Facts: Under the terms of a contract by which Cremer was to deliver wheat to Huyton, Huyton was required to pay Cremer on presentation of documents in a particular form. Huyton accepted delivery of the goods but his bank refused to make payment to Cremer on the basis that the documents were not in the approved form. Before going to arbitration, the matter was resolved by Huyton agreeing to pay Cremer on condition that Cremer gave up its claims to various shipping expenses that Cremer would normally have been able to claim back from Huyton. Cremer later contended that it had entered into the agreement on grounds of economic duress. It was held that even if Cremer could show illegitimate pressure (which was doubted) it could not show that the pressure was a significant cause of its entering into the agreement. There was therefore no duress.
Answer
Huyton SA v Peter Cremer GmbH & Co [1999] 1 Lloyd’s Rep 620

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Huyton SA v Peter Cremer GmbH & Co [1999] 1 Lloyd’s Rep 620 Facts: Under the terms of a contract by which Cremer was to deliver wheat to Huyton, Huyton was required to pay Cremer on presentation of documents in a particular form. Huyton accepted

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If the promisee is simply performing his existing contractual obligations, then this will not constitute consideration for a promise to pay more
Answer
Stilk v Myrick (1809) 2 Campbell 317, 170 ER 1168

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If, on the other hand, the promisee goes over and above his existing contractual obligations, then this will constitute good consideration
Answer
Hartley v Ponsonby 7 Ellis and Blackburn 872, 119 ER 1471

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If certain criteria are met, performance of existing contractual obligations will constitute good consideration provided the promisor obtains a practical benefit or obviates a disbenefit.
Answer
Williams v Roffey Bros & Nicholls (Contractors) Ltd [1991] 1 QB 1

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For promises to pay more, you will remember from the last chapter that, although the promisee was only doing what he was contractually obliged to do, there would be good consideration if the promisor received a practical benefit ([ case ])
Answer
Williams v Roffey

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pan>For promises to pay more, you will remember from the last chapter that, although the promisee was only doing what he was contractually obliged to do, there would be good consideration if the promisor received a practical benefit (Williams v Roffey)<span><body><html>

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For promises to pay more, you will remember from the last chapter that, although the promisee was only doing what he was contractually obliged to do, there would be good consideration if the promisor [...] (Williams v Roffey)
Answer
received a practical benefit

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For promises to pay more, you will remember from the last chapter that, although the promisee was only doing what he was contractually obliged to do, there would be good consideration if the promisor received a practical benefit (Williams v Roffey)

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Remember that the law will not look into whether the chattel is of equal monetary value to the sum which was previously owed since consideration must be sufficient but need not be adequate
Answer
Chappell & Co Limited and Another v Nestlé Co Limited and Another [1960] AC 87

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In the same way, payment of part of the debt before the date on which it is due may be good consideration ([case]), as may payment at a different place provided this was at the creditor’s request (Vanbergen v St Edmund Properties [1933] 2 KB 223) or payment by a third party (Welby v Drake (1825) 1 C & P 557). As long as there is 'fresh' consideration, the parties will be bound by this agreement.
Answer
Pinnel’s Case

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In the same way, payment of part of the debt before the date on which it is due may be good consideration (Pinnel’s Case), as may payment at a different place provided this was at the creditor’s request (Vanbergen v St Edmund Properties [1933] 2 KB 223) or payment by a third party (Welby v Drake (1825)

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In the same way, payment of part of the debt before the date on which it is due may be good consideration (Pinnel’s Case), as may payment at a different place provided this was at the creditor’s request ([ case ]) or payment by a third party (Welby v Drake (1825) 1 C & P 557). As long as there is 'fresh' consideration, the parties will be bound by this agreement.
Answer
Vanbergen v St Edmund Properties [1933] 2 KB 223

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In the same way, payment of part of the debt before the date on which it is due may be good consideration (Pinnel’s Case), as may payment at a different place provided this was at the creditor’s request (Vanbergen v St Edmund Properties [1933] 2 KB 223) or payment by a third party (Welby v Drake (1825) 1 C & P 557). As long as there is 'fresh' consideration, the parties will be bound by this agreement.</htm

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In the same way, payment of part of the debt before the date on which it is due may be good consideration (Pinnel’s Case), as may payment at a different place provided this was at the creditor’s request (Vanbergen v St Edmund Properties [1933] 2 KB 223) or payment by a third party ([ case ]). As long as there is 'fresh' consideration, the parties will be bound by this agreement.
Answer
Welby v Drake (1825) 1 C & P 557

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t before the date on which it is due may be good consideration (Pinnel’s Case), as may payment at a different place provided this was at the creditor’s request (Vanbergen v St Edmund Properties [1933] 2 KB 223) or payment by a third party (<span>Welby v Drake (1825) 1 C & P 557). As long as there is 'fresh' consideration, the parties will be bound by this agreement.<span><body><html>

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Facts: Woodhouse (the appellant buyers) purchased cocoa from the respondent sellers (Nigerian Produce) and the price was to be paid in Nigerian pounds in Lagos. The buyers then asked, by letter, if the sellers would agree to accept sterling in Lagos. The sellers agreed, by letter dated 30 September 1967, that payment could be made 'in sterling and in Lagos'. The pound sterling was then devalued so that it was worth less than the Nigerian pound. The buyers claimed that they could pay one pound sterling to one Nigerian pound. The sellers disagreed. One of the arguments raised by the buyers was that the representation contained in the letter dated 30 September 1967 amounted to an estoppel meaning that the sellers could not go back on it and claim the full price for the contracts.
The letter did not unambiguously state that the price to be paid would be Nigerian pounds for pounds sterling. In order to give rise to an estoppel a promise must be clear and unequivocal. The letter amounted only to a representation that the seller would accept payment in pounds sterling, rather than the Nigerian pound, to the same value as had been agreed. Lord Hailsham LC in particular made it plain that, if a promise would be insufficiently clear to vary the contract, such a promise could not be sufficiently clear to found the defence of promissory estoppel.
Answer
Woodhouse A.C Israel Cocoa Limited S.A and Another v Nigerian Produce Marketing Co Limited [1972] AC 741

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Woodhouse A.C Israel Cocoa Limited S.A and Another v Nigerian Produce Marketing Co Limited [1972] AC 741 Facts: Woodhouse (the appellant buyers) purchased cocoa from the respondent sellers (Nigerian Produce) and the price was to be paid in Nigerian pounds in Lagos. The buyers then asked, by

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In [ case ], it was not inequitable for the buyers to go back on their representation since so little time had elapsed since they had made their representation that the sellers were in no way prejudiced.
Answer
The Post Chaser

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In The Post Chaser, it was not inequitable for the buyers to go back on their representation since so little time had elapsed since they had made their representation that the sellers were in no way pre

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In The Post Chaser, it was not inequitable for the buyers to go back on their representation since [...] that the sellers were in no way prejudiced.
Answer
so little time had elapsed since they had made their representation

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In The Post Chaser, it was not inequitable for the buyers to go back on their representation since so little time had elapsed since they had made their representation that the sellers were in no way prejudiced.

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Facts: The sellers agreed to sell palm oil to the buyers, who agreed to sell this on to the sub-buyers. A clause in the agreement required that a ‘declaration of ship’ was to be made to the buyers in writing as soon as possible after the ship sailed. Despite the fact that the sellers did not give the declaration until more than a month after the ship sailed, the buyers raised no objection to this. The buyers requested that the sellers provide the documents to the sub-buyers. Two days later, the sub-buyers rejected the documents and, that same day, the buyers also rejected the documents. The sellers had to sell the oil to another for less than the price the buyers had agreed to pay. The sellers brought an action against the buyers for the difference in the two prices.
It is therefore clear that it is not a requirement that the promisee has been prejudiced by altering his position. However, it is an essential part of the doctrine that it should be inequitable for the promisor to go back on his promise and enforce the strict contractual obligations.
Answer
Societe Italo-Belge pour le Commerce et l’Industrie SA v Palm and Vegetable Oils (Malaysia) Sdn Bhd (The Post Chaser) [1982] 1 All ER 19

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Societe Italo-Belge pour le Commerce et l’Industrie SA v Palm and Vegetable Oils (Malaysia) Sdn Bhd (The Post Chaser) [1982] 1 All ER 19 Facts: The sellers agreed to sell palm oil to the buyers, who agreed to sell this on to the sub-buyers. A clause in the agreement required that a ‘declaration of ship’ was to be made to

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Facts: D & C Builders carried out work for Mr Rees and were owed £482 for that work. They chased Mr Rees for payment and finally Mr Rees’s wife, who knew that the builders faced financial difficulties, offered £300 in settlement of the debt stating that if that were not accepted nothing would be paid. The builders accepted and Mrs Rees provided them with a cheque and in return, at her request, the builders provided a receipt containing the words ‘received the sum of £300 from Mr Rees in completion of the account. ...’ The builders later sued for the balance. The court considered as a preliminary issue whether the claim was barred by reason of a settlement having been reached.
Mr Rees could not rely on promissory estoppel because of the pressure his wife placed on the builders to accept the lesser payment. In these circumstances it was not inequitable to allow the builders to go back on the promise to accept less since it had not been freely given. To allow the debtor to rely on the doctrine in such circumstances would be contrary to the equitable maxim that 'he who seeks equity must come with clean hands'.
Answer
D & C Builders Limited v Rees [1966] 2 QB 617

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D & C Builders Limited v Rees [1966] 2 QB 617 Facts: D & C Builders carried out work for Mr Rees and were owed £482 for that work. They chased Mr Rees for payment and finally Mr Rees’s wife, who knew that the builders faced fina

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Equitable Interests These are transferred by [...] (LPA 1925, s 53(1)(c)).
Answer
signed writing

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Equitable Interests These are transferred by signed writing (LPA 1925, s 53(1)(c)).

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In [ case ], Romer LJ said that equitable interests could be disposed of by their owner in four ways (see 4.4 above).Note that a settlor may confer on a trustee the power to create new equitable interests by declaring new trusts for persons within the ambit of the power: such declarations fall outside LPA, s 53(1)(c) but if land is involved will fall within s 53(1)(b).
Answer
Timpson’s Executors v Yerbury

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In Timpson’s Executors v Yerbury, Romer LJ said that equitable interests could be disposed of by their owner in four ways (see 4.4 above).Note that a settlor may confer on a trustee the power to create new equitable in

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In Timpson’s Executors v Yerbury, Romer LJ said that equitable interests could be disposed of by their owner in four ways (see 4.4 above).Note that a settlor may confer on a trustee the power to create new equitable interests by declaring new trusts for persons within the ambit of the power: such declarations fall [inside / outside] LPA, s 53(1)(c) but if land is involved will fall within s 53(1)(b).
Answer
outside

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could be disposed of by their owner in four ways (see 4.4 above).Note that a settlor may confer on a trustee the power to create new equitable interests by declaring new trusts for persons within the ambit of the power: such declarations fall <span>outside LPA, s 53(1)(c) but if land is involved will fall within s 53(1)(b).<span><body><html>

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In Timpson’s Executors v Yerbury, Romer LJ said that equitable interests could be disposed of by their owner in four ways (see 4.4 above).Note that a settlor may confer on a trustee the power to create new equitable interests by declaring new trusts for persons within the ambit of the power: such declarations fall outside [statute] but if land is involved will fall within s 53(1)(b).
Answer
LPA, s 53(1)(c)

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disposed of by their owner in four ways (see 4.4 above).Note that a settlor may confer on a trustee the power to create new equitable interests by declaring new trusts for persons within the ambit of the power: such declarations fall outside <span>LPA, s 53(1)(c) but if land is involved will fall within s 53(1)(b).<span><body><html>

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In Timpson’s Executors v Yerbury, Romer LJ said that equitable interests could be disposed of by their owner in four ways (see 4.4 above).Note that a settlor may confer on a trustee the power to create new equitable interests by declaring new trusts for persons within the ambit of the power: such declarations fall outside LPA, s 53(1)(c) but if land is involved will fall within [statute].
Answer
s 53(1)(b)

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Note that a settlor may confer on a trustee the power to create new equitable interests by declaring new trusts for persons within the ambit of the power: such declarations fall outside LPA, s 53(1)(c) but if land is involved will fall within <span>s 53(1)(b).<span><body><html>

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In [ case ], Mr Rose executed two transfers of shares in a private company on 30 March 1943, one by way of gift and the other to trustees. The transfers and share certificates were delivered to the transferees but the directors did not register the transfers until 30 June 1943. It was necessary for estate duty purposes to know when the transfers became effective. Even though legal title did not pass until registration, the Court of Appeal held that the transfers were effective in equity once Mr Rose had done everything in his power to vest the shares in the transferees. Pending registration, the settlor held the legal title to the shares on constructive trust for the transferees. What then would have happened if the directors had refused to register the transfer? The legal title would remain with the settlor but he would have to pay the dividend income to the transferees and vote as directed by them.
Answer
Re Rose [1952] Ch 499

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In Re Rose [1952] Ch 499, Mr Rose executed two transfers of shares in a private company on 30 March 1943, one by way of gift and the other to trustees. The transfers and share certificates were delivered to the

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In Re Rose [1952] Ch 499, Mr Rose executed two transfers of shares in a private company on 30 March 1943, one by way of gift and the other to trustees. The transfers and share certificates were delivered to the transferees but the directors did not register the transfers until 30 June 1943. It was necessary for estate duty purposes to know when the transfers became effective. Even though legal title did not pass until registration, the Court of Appeal held that the transfers were effective in equity once [...]. Pending registration, the settlor held the legal title to the shares on constructive trust for the transferees. What then would have happened if the directors had refused to register the transfer? The legal title would remain with the settlor but he would have to pay the dividend income to the transferees and vote as directed by them.
Answer
Mr Rose had done everything in his power to vest the shares in the transferees

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fers until 30 June 1943. It was necessary for estate duty purposes to know when the transfers became effective. Even though legal title did not pass until registration, the Court of Appeal held that the transfers were effective in equity once <span>Mr Rose had done everything in his power to vest the shares in the transferees. Pending registration, the settlor held the legal title to the shares on constructive trust for the transferees. What then would have happened if the directors had refused to register t

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In [ case ], the principle in Re Rose was applied by the Court of Appeal to a transfer of registered title to land. Once all the relevant documents had been executed and the transfer stamped and handed to the transferee (but before registration at the Land Registry) the gift was viewed as complete in equity.
Answer
Mascall v Mascall (1985) 50 P & CR 119

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In Mascall v Mascall (1985) 50 P & CR 119, the principle in Re Rose was applied by the Court of Appeal to a transfer of registered title to land. Once all the relevant documents had been executed and the transfer stamped and ha

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Following the cases of Re Rose and Mascall, it was generally considered that, for the principle to apply, [...], so as to put it out of the donor’s power to change his mind.
Answer
the transfer and other documents must either have been sent off for registration or delivered to the donee or his agent

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Following the cases of Re Rose and Mascall, it was generally considered that, for the principle to apply, the transfer and other documents must either have been sent off for registration or delivered to the donee or his agent, so as to put it out of the donor’s power to change his mind.

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Following the cases of Re Rose and Mascall, it was generally considered that, for the principle to apply, the transfer and other documents must either have been sent off for registration or delivered to the donee or his agent, so as [...].
Answer
to put it out of the donor’s power to change his mind

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n>Following the cases of Re Rose and Mascall, it was generally considered that, for the principle to apply, the transfer and other documents must either have been sent off for registration or delivered to the donee or his agent, so as to put it out of the donor’s power to change his mind.<span><body><html>

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In [ case ], the rule was extended to perfect an imperfect gift of bonds to the donor’s wife, equity positively intervening to oust the common law position, the donor being responsible for her acquiring title to the bonds as one of his appointed executors. Note, however, that the rule in Strong v Bird does not apply to an intention to make a gift in the future, which is in effect merely a promise (not enforceable in the eyes of the law) to make a gift at some later date.
Answer
Re Stewart [1908] 2 Ch 251

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In Re Stewart [1908] 2 Ch 251, the rule was extended to perfect an imperfect gift of bonds to the donor’s wife, equity positively intervening to oust the common law position, the donor being responsible for her ac

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In Re Stewart [1908] 2 Ch 251, the rule was extended to perfect an imperfect gift of bonds to the donor’s wife, equity positively intervening to oust the common law position, the donor being responsible for her acquiring title to the bonds as one of his appointed executors. Note, however, that the rule in Strong v Bird does not apply to [...], which is in effect merely a promise (not enforceable in the eyes of the law) to make a gift at some later date.
Answer
an intention to make a gift in the future

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donor’s wife, equity positively intervening to oust the common law position, the donor being responsible for her acquiring title to the bonds as one of his appointed executors. Note, however, that the rule in Strong v Bird does not apply to <span>an intention to make a gift in the future, which is in effect merely a promise (not enforceable in the eyes of the law) to make a gift at some later date.<span><body><html>

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It the rule in Strong v Bird applies whether the donee is the sole executor (as in Strong v Bird) or one of several executors: [...].
Answer
Re Stewart

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It the rule in Strong v Bird applies whether the donee is the sole executor (as in Strong v Bird) or one of several executors: Re Stewart.

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Where a beneficiary is not a party to the deed, the rules on ‘privity of contract’ prevented him suing at common law – [ case ].
Answer
Tweddle v Atkinson

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Where a beneficiary is not a party to the deed, the rules on ‘privity of contract’ prevented him suing at common law – Tweddle v Atkinson.

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According to Sen v Headley [1991] Ch 425 and Re Bogusz (deceased) [2013] EWCH 1449 (Ch), [2014] 2 WLR 543 a dmc operates under a [...]. However, it is unclear why it would be unconscionable to deny perfecting the donee’s title in the absence of any reliance on the gift (compare Pennington v Waine, see 5.6.1 above). Even more problematic is the suggestion in Re Bogusz that the conscience of the donor’s personal representative is affected (at [27]) even though the donor himself has done nothing unconscionable.
Answer
constructive trust

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According to Sen v Headley [1991] Ch 425 and Re Bogusz (deceased) [2013] EWCH 1449 (Ch), [2014] 2 WLR 543 a dmc operates under a constructive trust. However, it is unclear why it would be unconscionable to deny perfecting the donee’s title in the absence of any reliance on the gift (compare Pennington v Waine, see 5.6.1 above).

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According to [ cases (2) ] a dmc operates under a constructive trust. However, it is unclear why it would be unconscionable to deny perfecting the donee’s title in the absence of any reliance on the gift (compare Pennington v Waine, see 5.6.1 above). Even more problematic is the suggestion in Re Bogusz that the conscience of the donor’s personal representative is affected (at [27]) even though the donor himself has done nothing unconscionable.
Answer
Sen v Headley [1991] Ch 425 and Re Bogusz (deceased) [2013] EWCH 1449 (Ch), [2014] 2 WLR 543

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According to Sen v Headley [1991] Ch 425 and Re Bogusz (deceased) [2013] EWCH 1449 (Ch), [2014] 2 WLR 543 a dmc operates under a constructive trust. However, it is unclear why it would be unconscionable to deny perfecting the donee’s title in the absence of any reliance on the gift (compa

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According to Sen v Headley [1991] Ch 425 and Re Bogusz (deceased) [2013] EWCH 1449 (Ch), [2014] 2 WLR 543 a dmc operates under a constructive trust. However, it is unclear why it would be unconscionable to deny perfecting the donee’s title in the absence of any reliance on the gift (compare Pennington v Waine, see 5.6.1 above). Even more problematic is the suggestion in [ case ] that the conscience of the donor’s personal representative is affected (at [27]) even though the donor himself has done nothing unconscionable.
Answer
Re Bogusz

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uctive trust. However, it is unclear why it would be unconscionable to deny perfecting the donee’s title in the absence of any reliance on the gift (compare Pennington v Waine, see 5.6.1 above). Even more problematic is the suggestion in <span>Re Bogusz that the conscience of the donor’s personal representative is affected (at [27]) even though the donor himself has done nothing unconscionable.<span><body><html>

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The most notable exception is the donor’s own cheque payable to the donee, as it is not ‘property’ but a revocable mandate to the donor’s bank, which ends on death (Re Beaumont [1902] 1 Ch 886). However, a cheque payable to the donor may be the subject matter of a dmc if [...] (Re Mead (1880) 15 Ch D 651).
Answer
it is delivered, even without being endorsed

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e donor’s own cheque payable to the donee, as it is not ‘property’ but a revocable mandate to the donor’s bank, which ends on death (Re Beaumont [1902] 1 Ch 886). However, a cheque payable to the donor may be the subject matter of a dmc if <span>it is delivered, even without being endorsed (Re Mead (1880) 15 Ch D 651).<span><body><html>

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The most notable exception is the donor’s own cheque payable to the donee, as it is not ‘property’ but a revocable mandate to the donor’s bank, which ends on death (Re Beaumont [1902] 1 Ch 886). However, a cheque payable to the donor may be the subject matter of a dmc if it is delivered, even without being endorsed ([ case ]).
Answer
Re Mead (1880) 15 Ch D 651

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it is not ‘property’ but a revocable mandate to the donor’s bank, which ends on death (Re Beaumont [1902] 1 Ch 886). However, a cheque payable to the donor may be the subject matter of a dmc if it is delivered, even without being endorsed (<span>Re Mead (1880) 15 Ch D 651).<span><body><html>

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The most notable exception is the donor’s own cheque payable to the donee, as it is not ‘property’ but a revocable mandate to the donor’s bank, which ends on death ([case]). However, a cheque payable to the donor may be the subject matter of a dmc if it is delivered, even without being endorsed (Re Mead (1880) 15 Ch D 651).
Answer
Re Beaumont [1902] 1 Ch 886

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The most notable exception is the donor’s own cheque payable to the donee, as it is not ‘property’ but a revocable mandate to the donor’s bank, which ends on death (Re Beaumont [1902] 1 Ch 886). However, a cheque payable to the donor may be the subject matter of a dmc if it is delivered, even without being endorsed (Re Mead (1880) 15 Ch D 651).

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A savings account can be the subject of a dmc, by handing over the essential indicia of title, i.e. the savings account book: [ case ] (bank deposit pass- book); Re Weston [1902] 1 CH 608 (post-office savings bank book).
Answer
Birch v Treasury Solicitor [1951] CH 298

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A savings account can be the subject of a dmc, by handing over the essential indicia of title, i.e. the savings account book: Birch v Treasury Solicitor [1951] CH 298 (bank deposit pass- book); Re Weston [1902] 1 CH 608 (post-office savings bank book).

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A savings account can be the subject of a dmc, by handing over the essential indicia of title, i.e. the savings account book: Birch v Treasury Solicitor [1951] CH 298 (bank deposit pass- book); [ case ] (post-office savings bank book).
Answer
Re Weston [1902] 1 CH 608

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A savings account can be the subject of a dmc, by handing over the essential indicia of title, i.e. the savings account book: Birch v Treasury Solicitor [1951] CH 298 (bank deposit pass- book); Re Weston [1902] 1 CH 608 (post-office savings bank book).

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A savings account can be the subject of a dmc, by [...]: Birch v Treasury Solicitor [1951] CH 298 (bank deposit pass- book); Re Weston [1902] 1 CH 608 (post-office savings bank book).
Answer
handing over the essential indicia of title, i.e. the savings account book

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A savings account can be the subject of a dmc, by handing over the essential indicia of title, i.e. the savings account book: Birch v Treasury Solicitor [1951] CH 298 (bank deposit pass- book); Re Weston [1902] 1 CH 608 (post-office savings bank book).

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Flashcard 1378127056140

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Further, see [ case ], where the Court of Appeal held that the deceased owner of an absolute equitable interest in a shareholding had not done everything in his power to transfer the shareholding when he had not handed over the share certificate, although he had handed over a share transfer form signed by the registered shareholder.
Answer
Zeital v Kaye [2010] EWCA Civ 159

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Further, see Zeital v Kaye [2010] EWCA Civ 159, where the Court of Appeal held that the deceased owner of an absolute equitable interest in a shareholding had not done everything in his power to transfer the shareholding when he h

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Further, see Zeital v Kaye [2010] EWCA Civ 159, where the Court of Appeal held that the deceased owner of an absolute equitable interest in a shareholding had not done everything in his power to transfer the shareholding when [...], although he had handed over a share transfer form signed by the registered shareholder.
Answer
he had not handed over the share certificate

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dy>Further, see Zeital v Kaye [2010] EWCA Civ 159, where the Court of Appeal held that the deceased owner of an absolute equitable interest in a shareholding had not done everything in his power to transfer the shareholding when he had not handed over the share certificate, although he had handed over a share transfer form signed by the registered shareholder.<body><html>

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In contrast to the above cases, see [ case ] at 3.2 above, where an effective declaration of trust was found because the court found sufficient intention on the part of Constance to make himself a trustee of the money in the account.
Answer
Paul v Constance [1977] 1 WLR 527

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In contrast to the above cases, see Paul v Constance [1977] 1 WLR 527 at 3.2 above, where an effective declaration of trust was found because the court found sufficient intention on the part of Constance to make himself a trustee of the money in the acc

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Flashcard 1378131774732

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In contrast to the above cases, see Paul v Constance [1977] 1 WLR 527 at 3.2 above, where an effective declaration of trust was found because the court found [...].
Answer
sufficient intention on the part of Constance to make himself a trustee of the money in the account

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In contrast to the above cases, see Paul v Constance [1977] 1 WLR 527 at 3.2 above, where an effective declaration of trust was found because the court found sufficient intention on the part of Constance to make himself a trustee of the money in the account.

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Flashcard 1378132823308

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Question
If, as in [ case ] (at 5.2 above), the settlor intends to create a settlement by transfer, but fails to vest the legal estate in the trustees, equity will not interpret that transaction as a declaration of trust. The settlor will not be treated as a trustee. A failed method 2 in 5.4 above will not be construed as an effectual method 3.
Answer
Milroy v Lord

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If, as in Milroy v Lord (at 5.2 above), the settlor intends to create a settlement by transfer, but fails to vest the legal estate in the trustees, equity will not interpret that transaction as a declaration

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Flashcard 1378135444748

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Choses in Action: Debts and other choses in action (including rights under bank accounts) are transferred by [...], complying with LPA 1925, s 136: notice in writing must be given to the debtor/other party.
Answer
writing

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Choses in Action: Debts and other choses in action (including rights under bank accounts) are transferred by writing, complying with LPA 1925, s 136: notice in writing must be given to the debtor/other party.

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Choses in Action: Debts and other choses in action (including rights under bank accounts) are transferred by writing, complying with [ statute ]: notice in writing must be given to the debtor/other party.
Answer
LPA 1925, s 136

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Choses in Action: Debts and other choses in action (including rights under bank accounts) are transferred by writing, complying with LPA 1925, s 136: notice in writing must be given to the debtor/other party.

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Flashcard 1378138328332

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Chattels may be transferred [...] (Re Cole [1964] Ch 175) accompanied by the transferor intending to transfer them.
Answer
either by a deed of gift or by actual delivery

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Chattels may be transferred either by a deed of gift or by actual delivery (Re Cole [1964] Ch 175) accompanied by the transferor intending to transfer them.

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Question
Chattels may be transferred either by a deed of gift or by actual delivery ([ case ]) accompanied by the transferor intending to transfer them.
Answer
Re Cole [1964] Ch 175

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Chattels may be transferred either by a deed of gift or by actual delivery (Re Cole [1964] Ch 175) accompanied by the transferor intending to transfer them.

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Flashcard 1378141211916

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Question
Chattels may be transferred either by a deed of gift or by actual delivery (Re Cole [1964] Ch 175) accompanied by [...].
Answer
the transferor intending to transfer them

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Chattels may be transferred either by a deed of gift or by actual delivery (Re Cole [1964] Ch 175) accompanied by the transferor intending to transfer them.

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Flashcard 1378142260492

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Question
In order to transfer a subsisting equitable interest in land, the settlor must comply with [ statute ]
Answer
LPA, s 53(1)(c)

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In order to transfer a subsisting equitable interest in land, the settlor must comply with LPA, s 53(1)(c)

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The [ statute ] provides that, where a term of a contract purports to confer a benefit on a third party, they may enforce the term in their own right, unless it appears the parties did not intend this – s 1(2).
Answer
Contracts (Rights of Third Parties) Act 1999, s1

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The Contracts (Rights of Third Parties) Act 1999, s1 provides that, where a term of a contract purports to confer a benefit on a third party, they may enforce the term in their own right, unless it appears the parties did not intend this

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The Contracts (Rights of Third Parties) Act 1999, s1 provides that, [...], they may enforce the term in their own right, unless it appears the parties did not intend this – s 1(2).
Answer
where a term of a contract purports to confer a benefit on a third party

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The Contracts (Rights of Third Parties) Act 1999, s1 provides that, where a term of a contract purports to confer a benefit on a third party, they may enforce the term in their own right, unless it appears the parties did not intend this – s 1(2).

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Flashcard 1378146979084

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The Contracts (Rights of Third Parties) Act 1999, s1 provides that, where a term of a contract purports to confer a benefit on a third party, they [...], unless it appears the parties did not intend this – s 1(2).
Answer
may enforce the term in their own right

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The Contracts (Rights of Third Parties) Act 1999, s1 provides that, where a term of a contract purports to confer a benefit on a third party, they may enforce the term in their own right, unless it appears the parties did not intend this – s 1(2).

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Flashcard 1378148027660

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The Contracts (Rights of Third Parties) Act 1999, s1 provides that, where a term of a contract purports to confer a benefit on a third party, they may enforce the term in their own right, unless [...] – s 1(2).
Answer
it appears the parties did not intend this

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The Contracts (Rights of Third Parties) Act 1999, s1 provides that, where a term of a contract purports to confer a benefit on a third party, they may enforce the term in their own right, unless it appears the parties did not intend this – s 1(2).

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Question
The Contracts (Rights of Third Parties) Act 1999, s1 provides that, where a term of a contract purports to confer a benefit on a third party, they may enforce the term in their own right, unless it appears the parties did not intend this – [ statute ].
Answer
s 1(2)

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>The Contracts (Rights of Third Parties) Act 1999, s1 provides that, where a term of a contract purports to confer a benefit on a third party, they may enforce the term in their own right, unless it appears the parties did not intend this – <span>s 1(2). <span><body><html>

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Flashcard 1378150911244

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In [ case ], a man who was terminally ill told a woman friend that his house was hers and that the deeds were in a steel box. He slipped the keys to the box into her bag. The Court of Appeal held that there was a valid dmc of the house, by constructive delivery of the title deeds. The personal representatives should perfect the gift.
Answer
Sen v Headley [1991] Ch 425

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In Sen v Headley [1991] Ch 425, a man who was terminally ill told a woman friend that his house was hers and that the deeds were in a steel box. He slipped the keys to the box into her bag. The Court of Appeal held

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Flashcard 1378152746252

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In Sen v Headley [1991] Ch 425, a man who was terminally ill told a woman friend that his house was hers and that the deeds were in a steel box. He slipped the keys to the box into her bag. The Court of Appeal held that [...]. The personal representatives should perfect the gift.
Answer
there was a valid dmc of the house, by constructive delivery of the title deeds

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ad>In Sen v Headley [1991] Ch 425, a man who was terminally ill told a woman friend that his house was hers and that the deeds were in a steel box. He slipped the keys to the box into her bag. The Court of Appeal held that there was a valid dmc of the house, by constructive delivery of the title deeds. The personal representatives should perfect the gift.<html>

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Flashcard 1378153794828

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Question
Equitable Proprietary Estoppel This doctrine has sometimes been used to [...] – see, e.g. Gillett v Holt [2000] 2 All ER 289 and Thorner v Major [2009] UKHL 18. Proprietary estoppel arises where there is an assurance, reliance and detriment, so that it would be unconscionable to go back on the assurance. The award is based on the 'minimum equity required to do justice', so the claimant does not necessarily receive what he had been led to expect.
Answer
give effect to imperfect gifts

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Equitable Proprietary Estoppel This doctrine has sometimes been used to give effect to imperfect gifts – see, e.g. Gillett v Holt [2000] 2 All ER 289 and Thorner v Major [2009] UKHL 18. Proprietary estoppel arises where there is an assurance, reliance and detriment, so that it would be

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Flashcard 1378154843404

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Equitable Proprietary Estoppel This doctrine has sometimes been used to give effect to imperfect gifts – see, e.g. [ cases (2) ]. Proprietary estoppel arises where there is an assurance, reliance and detriment, so that it would be unconscionable to go back on the assurance. The award is based on the 'minimum equity required to do justice', so the claimant does not necessarily receive what he had been led to expect.
Answer
Gillett v Holt [2000] 2 All ER 289 and Thorner v Major [2009] UKHL 18

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Equitable Proprietary Estoppel This doctrine has sometimes been used to give effect to imperfect gifts – see, e.g. Gillett v Holt [2000] 2 All ER 289 and Thorner v Major [2009] UKHL 18. Proprietary estoppel arises where there is an assurance, reliance and detriment, so that it would be unconscionable to go back on the assurance. The award is based on the 'minimum eq

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Flashcard 1378156678412

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Question
Equitable Proprietary Estoppel This doctrine has sometimes been used to give effect to imperfect gifts – see, e.g. Gillett v Holt [2000] 2 All ER 289 and Thorner v Major [2009] UKHL 18. Proprietary estoppel arises where there is [...], so that it would be unconscionable to go back on the assurance. The award is based on the 'minimum equity required to do justice', so the claimant does not necessarily receive what he had been led to expect.
Answer
an assurance, reliance and detriment

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span>Equitable Proprietary Estoppel This doctrine has sometimes been used to give effect to imperfect gifts – see, e.g. Gillett v Holt [2000] 2 All ER 289 and Thorner v Major [2009] UKHL 18. Proprietary estoppel arises where there is an assurance, reliance and detriment, so that it would be unconscionable to go back on the assurance. The award is based on the 'minimum equity required to do justice', so the claimant does not necessarily receive what h

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Flashcard 1378157726988

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Compare [ case ] where the transferor who was domiciled abroad had not obtained Treasury consent (as required by statute at the time) and died before it was obtained. The transfer of shares was ineffective.
Answer
Re Fry [1948] Ch 312

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Compare Re Fry [1948] Ch 312 where the transferor who was domiciled abroad had not obtained Treasury consent (as required by statute at the time) and died before it was obtained. The transfer of shares was ineffec

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Flashcard 1378159561996

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Where a transfer to a donee or to trustees is incomplete, the general rule is that [...]. Turner LJ in Milroy v Lord (at 5.2 above) said that ‘the settlor must have done everything which was necessary to be done in order to transfer the property and render the settlement binding upon him.’ This has been interpreted as meaning that, where the settlor has done everything within their power, equity may regard the transfer as complete.
Answer
equity will not assist

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Where a transfer to a donee or to trustees is incomplete, the general rule is that equity will not assist. Turner LJ in Milroy v Lord (at 5.2 above) said that ‘the settlor must have done everything which was necessary to be done in order to transfer the property and render the settlement

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Flashcard 1378160610572

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Where a transfer to a donee or to trustees is incomplete, the general rule is that equity will not assist. Turner LJ in [ case ] (at 5.2 above) said that ‘the settlor must have done everything which was necessary to be done in order to transfer the property and render the settlement binding upon him.’ This has been interpreted as meaning that, where the settlor has done everything within their power, equity may regard the transfer as complete.
Answer
Milroy v Lord

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Where a transfer to a donee or to trustees is incomplete, the general rule is that equity will not assist. Turner LJ in Milroy v Lord (at 5.2 above) said that ‘the settlor must have done everything which was necessary to be done in order to transfer the property and render the settlement binding upon him.’ This has

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Flashcard 1378162445580

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Question
Where a transfer to a donee or to trustees is incomplete, the general rule is that equity will not assist. Turner LJ in Milroy v Lord (at 5.2 above) said that ‘the settlor must have done [...] and render the settlement binding upon him.’ This has been interpreted as meaning that, where the settlor has done everything within their power, equity may regard the transfer as complete.
Answer
everything which was necessary to be done in order to transfer the property

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Where a transfer to a donee or to trustees is incomplete, the general rule is that equity will not assist. Turner LJ in Milroy v Lord (at 5.2 above) said that ‘the settlor must have done everything which was necessary to be done in order to transfer the property and render the settlement binding upon him.’ This has been interpreted as meaning that, where the settlor has done everything within their power, equity may regard the transfer as com

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Flashcard 1378163494156

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Question
Where a transfer to a donee or to trustees is incomplete, the general rule is that equity will not assist. Turner LJ in Milroy v Lord (at 5.2 above) said that ‘the settlor must have done everything which was necessary to be done in order to transfer the property and [...].’ This has been interpreted as meaning that, where the settlor has done everything within their power, equity may regard the transfer as complete.
Answer
render the settlement binding upon him

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e or to trustees is incomplete, the general rule is that equity will not assist. Turner LJ in Milroy v Lord (at 5.2 above) said that ‘the settlor must have done everything which was necessary to be done in order to transfer the property and <span>render the settlement binding upon him.’ This has been interpreted as meaning that, where the settlor has done everything within their power, equity may regard the transfer as complete. <span><body><html>

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Flashcard 1378164542732

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Also see [ case ]. In that case, the Court of Appeal construed a letter referring to a transfer of shares as a declaration of trust of the shares, rather than a gift. The transferor delivered a letter to the transferee, M. The letter referred to the transferor ‘holding’ shares for M and describing the letter as a ‘declaration’. The transferor did not, however, deliver the share certificates to M, and the forms of transfer and then registration were not completed until a later date. The transferor later challenged the disposition on the ground that the letter constituted a gift, and, as the gift was not completely constituted, it was of no effect. The CA held that on construction the letter was a declaration of trust. This trust took effect until the transfer of legal title took effect by registration of the donee.
Answer
Shah v Shah [2010] EWCA Civ 1408

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Also see Shah v Shah [2010] EWCA Civ 1408. In that case, the Court of Appeal construed a letter referring to a transfer of shares as a declaration of trust of the shares, rather than a gift. The transferor delivered a letter

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Flashcard 1378166377740

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Also see Shah v Shah [2010] EWCA Civ 1408. In that case, the Court of Appeal construed a letter referring to a transfer of shares as a declaration of trust of the shares, rather than a gift. The transferor delivered a letter to the transferee, M. The letter referred to the transferor ‘holding’ shares for M and describing the letter as a ‘declaration’. The transferor did not, however, deliver the share certificates to M, and the forms of transfer and then registration were not completed until a later date. The transferor later challenged the disposition on the ground that the letter constituted a gift, and, as the gift was not completely constituted, it was of no effect. The CA held that on construction the letter was a declaration of trust. This trust took effect until the [...].
Answer
transfer of legal title took effect by registration of the donee

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he disposition on the ground that the letter constituted a gift, and, as the gift was not completely constituted, it was of no effect. The CA held that on construction the letter was a declaration of trust. This trust took effect until the <span>transfer of legal title took effect by registration of the donee.<span><body><html>

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Flashcard 1378167426316

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In [ case ], a grandfather endorsed on his lease a memorandum saying ‘This deed and all thereto belonging I give to Edward [a minor] from this time forth.’ The grandfather later died. It was held that the lease had not been legally assigned. (Endorsement on the deed is ineffective; a separate deed should have been used.) Neither could the attempted transfer be construed as a declaration of trust, because he had not intended to declare a trust but to make an outright gift.
Answer
Richards v Delbridge (1874) LR 18 Eq 11

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In Richards v Delbridge (1874) LR 18 Eq 11, a grandfather endorsed on his lease a memorandum saying ‘This deed and all thereto belonging I give to Edward [a minor] from this time forth.’ The grandfather later died. It was hel

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Flashcard 1378169261324

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Question
In Richards v Delbridge (1874) LR 18 Eq 11, a grandfather endorsed on his lease a memorandum saying ‘This deed and all thereto belonging I give to Edward [a minor] from this time forth.’ The grandfather later died. It was held that the lease had not been legally assigned. (Endorsement on the deed is ineffective; a separate deed should have been used.) Neither could the attempted transfer be construed as a declaration of trust, because [...].
Answer
he had not intended to declare a trust but to make an outright gift

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her later died. It was held that the lease had not been legally assigned. (Endorsement on the deed is ineffective; a separate deed should have been used.) Neither could the attempted transfer be construed as a declaration of trust, because <span>he had not intended to declare a trust but to make an outright gift.<span><body><html>

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Flashcard 1378170309900

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Question
In [ case ], Robert Jones returned home without a present for his baby and, on being chided for this, produced a cheque for £900 payable to himself and said, ‘I give this to baby; it is for himself.’ Robert died shortly afterwards. As he had not endorsed the cheque to his son, the property in it had not been transferred and the court rejected the argument that he had declared himself a trustee of the cheque. He had intended an absolute gift, which entails giving away all benefit to, control of and obligation for the property. This is distinct from the intention to declare oneself a trustee, where the settlor/trustee retains control of the property and assumes the onerous obligation of a trustee.
Answer
Jones v Lock (1865) LR 1 Ch App 25

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In Jones v Lock (1865) LR 1 Ch App 25, Robert Jones returned home without a present for his baby and, on being chided for this, produced a cheque for £900 payable to himself and said, ‘I give this to baby; it is for himse

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Flashcard 1378172144908

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Question
In Jones v Lock (1865) LR 1 Ch App 25, Robert Jones returned home without a present for his baby and, on being chided for this, produced a cheque for £900 payable to himself and said, ‘I give this to baby; it is for himself.’ Robert died shortly afterwards. As [...], the property in it had not been transferred and the court rejected the argument that he had declared himself a trustee of the cheque. He had intended an absolute gift, which entails giving away all benefit to, control of and obligation for the property. This is distinct from the intention to declare oneself a trustee, where the settlor/trustee retains control of the property and assumes the onerous obligation of a trustee.
Answer
he had not endorsed the cheque to his son

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) LR 1 Ch App 25, Robert Jones returned home without a present for his baby and, on being chided for this, produced a cheque for £900 payable to himself and said, ‘I give this to baby; it is for himself.’ Robert died shortly afterwards. As <span>he had not endorsed the cheque to his son, the property in it had not been transferred and the court rejected the argument that he had declared himself a trustee of the cheque. He had intended an absolute gift, which entails

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Flashcard 1378173193484

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Money This is transferred by [...]. Merely writing a cheque in someone’s favour and handing it over to the payee does not transfer the money to them until the cheque has been cleared. A cheque is a mandate (instruction) to the payer’s bank to transfer the money from the payer’s account to the payee (or their account). If the payer dies before the cheque has been cleared, their death countermands the instructions to the bank. If the payee has given no consideration for the cheque, they cannot enforce payment.
Answer
delivery

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Money This is transferred by delivery. Merely writing a cheque in someone’s favour and handing it over to the payee does not transfer the money to them until the cheque has been cleared. A cheque is a mandate (instruction

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Flashcard 1378174242060

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Money This is transferred by delivery. Merely writing a cheque in someone’s favour and handing it over to the payee does not transfer the money to them until [...]. A cheque is a mandate (instruction) to the payer’s bank to transfer the money from the payer’s account to the payee (or their account). If the payer dies before the cheque has been cleared, their death countermands the instructions to the bank. If the payee has given no consideration for the cheque, they cannot enforce payment.
Answer
the cheque has been cleared

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Money This is transferred by delivery. Merely writing a cheque in someone’s favour and handing it over to the payee does not transfer the money to them until the cheque has been cleared. A cheque is a mandate (instruction) to the payer’s bank to transfer the money from the payer’s account to the payee (or their account). If the payer dies before the cheque has been c

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Flashcard 1378175290636

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Question
Cheques (and other bills of exchange) made in favour of the transferor may be transferred to a third party (i.e. someone other than the named payee) by [...], according to the Bills of Exchange Act 1882. (Note: the Cheques Act 1992, and see Jones v Lock (1865) LR 1 Ch App 25, below.)
Answer
the transferor endorsing the cheque (i.e. signing his name on the back of the cheque)

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Cheques (and other bills of exchange) made in favour of the transferor may be transferred to a third party (i.e. someone other than the named payee) by the transferor endorsing the cheque (i.e. signing his name on the back of the cheque), according to the Bills of Exchange Act 1882. (Note: the Cheques Act 1992, and see Jones v Lock (1865) LR 1 Ch App 25, below.)

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Flashcard 1378176339212

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Question
Cheques (and other bills of exchange) made in favour of the transferor may be transferred to a third party (i.e. someone other than the named payee) by the transferor endorsing the cheque (i.e. signing his name on the back of the cheque), according to the [ statute ]. (Note: the Cheques Act 1992, and see Jones v Lock (1865) LR 1 Ch App 25, below.)
Answer
Bills of Exchange Act 1882

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her bills of exchange) made in favour of the transferor may be transferred to a third party (i.e. someone other than the named payee) by the transferor endorsing the cheque (i.e. signing his name on the back of the cheque), according to the <span>Bills of Exchange Act 1882. (Note: the Cheques Act 1992, and see Jones v Lock (1865) LR 1 Ch App 25, below.)<span><body><html>

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Flashcard 1378178174220

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Question
Cheques (and other bills of exchange) made in favour of the transferor may be transferred to a third party (i.e. someone other than the named payee) by the transferor endorsing the cheque (i.e. signing his name on the back of the cheque), according to the Bills of Exchange Act 1882. (Note: the Cheques Act 1992, and see [ case ], below.)
Answer
Jones v Lock (1865) LR 1 Ch App 25

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nsferred to a third party (i.e. someone other than the named payee) by the transferor endorsing the cheque (i.e. signing his name on the back of the cheque), according to the Bills of Exchange Act 1882. (Note: the Cheques Act 1992, and see <span>Jones v Lock (1865) LR 1 Ch App 25, below.)<span><body><html>

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Flashcard 1378180009228

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Question
In general, with shares of a public limited company (a plc), the directors may not refuse to register the transfer of shares. However, with a private limited company, there is frequently some provision in the company’s articles of association (part of its constitution) restricting the transfer of the company’s shares. Depending on the terms of the articles of association, the directors of a private limited company may refuse to register the transfer. (Further, see [ case ], 5.6.1.)
Answer
Re Rose

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f association (part of its constitution) restricting the transfer of the company’s shares. Depending on the terms of the articles of association, the directors of a private limited company may refuse to register the transfer. (Further, see <span>Re Rose, 5.6.1.)<span><body><html>

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Flashcard 1378181844236

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Question
In order to transfer the legal estate in land, the requirements of [ statute ] must be satisfied. The transfer must be in a deed. (And see Richards v Delbridge (1874) LR 18 Eq 11, below.)
Answer
LPA 1925, s 52(1)

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In order to transfer the legal estate in land, the requirements of LPA 1925, s 52(1) must be satisfied. The transfer must be in a deed. (And see Richards v Delbridge (1874) LR 18 Eq 11, below.)

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Flashcard 1378183679244

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Question
In order to transfer the legal estate in land, the requirements of LPA 1925, s 52(1) must be satisfied. The transfer must be in a deed. (And see [ case ], below.)
Answer
Richards v Delbridge (1874) LR 18 Eq 11

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In order to transfer the legal estate in land, the requirements of LPA 1925, s 52(1) must be satisfied. The transfer must be in a deed. (And see Richards v Delbridge (1874) LR 18 Eq 11, below.)

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Flashcard 1378185514252

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Question
The leading case on constitution is [ case ], which provides a clear general statement of the issues. The settlor executed a voluntary deed purporting to transfer shares in the Bank of Louisiana to Lord to be held for the plaintiffs. The shares could only be legally transferred by the appropriate transfer form (not by a deed) followed by registration of the new owner in the company’s books, which was never done. The settlor handed the share certificates to Lord, who had a general power of attorney to act on behalf of the settlor that would have enabled him to register the shares in his name. Dividends were subsequently received by Lord and validly distributed to the plaintiffs until the settlor’s death, three years later. The Court of Appeal in Chancery decided that, as the shares had not vested in Lord, there was no trust of the shares, despite the settlor’s clear intention to create one.
Answer
Milroy v Lord (1862) 31 LJ Ch 798

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The leading case on constitution is Milroy v Lord (1862) 31 LJ Ch 798, which provides a clear general statement of the issues. The settlor executed a voluntary deed purporting to transfer shares in the Bank of Louisiana to Lord to be held for the plain

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Flashcard 1378187349260

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Question
The leading case on constitution is Milroy v Lord (1862) 31 LJ Ch 798, which provides a clear general statement of the issues. The settlor executed a voluntary deed purporting to transfer shares in the Bank of Louisiana to Lord to be held for the plaintiffs. The shares could only be legally transferred by [...], which was never done. The settlor handed the share certificates to Lord, who had a general power of attorney to act on behalf of the settlor that would have enabled him to register the shares in his name. Dividends were subsequently received by Lord and validly distributed to the plaintiffs until the settlor’s death, three years later. The Court of Appeal in Chancery decided that, as the shares had not vested in Lord, there was no trust of the shares, despite the settlor’s clear intention to create one.
Answer
the appropriate transfer form (not by a deed) followed by registration of the new owner in the company’s books

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98, which provides a clear general statement of the issues. The settlor executed a voluntary deed purporting to transfer shares in the Bank of Louisiana to Lord to be held for the plaintiffs. The shares could only be legally transferred by <span>the appropriate transfer form (not by a deed) followed by registration of the new owner in the company’s books, which was never done. The settlor handed the share certificates to Lord, who had a general power of attorney to act on behalf of the settlor that would have enabled him to register t

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Flashcard 1378188397836

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It even applies where the donee becomes an administrator on the intestacy of the donor: [case]). Walton J doubted this in Re Gonin [1979] Ch 16 because the donor has no responsibility for making the donee becoming administrator of his estate, so that Strong v Bird would have been decided differently if the defendant had been an administrator and not the executor appointed by the testator,but his remarks were obiter because he found no continuing intention to give a house to the plaintiff.
Answer
Re James [1935] Ch 449

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It even applies where the donee becomes an administrator on the intestacy of the donor: Re James [1935] Ch 449). Walton J doubted this in Re Gonin [1979] Ch 16 because the donor has no responsibility for making the donee becoming administrator of his estate, so that Strong v Bird would have be

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Flashcard 1378191019276

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Question
[ statute ] require writing for certain trust dealings.
Answer
Law of Property Act 1925 ss. 53(1)(b) and (c)

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Law of Property Act 1925 ss. 53(1)(b) and (c) require writing for certain trust dealings.

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Flashcard 1378192854284

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Question
Law of Property Act 1925 ss. 53(1)(b) and (c) require [...] for certain trust dealings.
Answer
writing

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Law of Property Act 1925 ss. 53(1)(b) and (c) require writing for certain trust dealings.

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Flashcard 1378193902860

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Question
Lifetime (or inter vivos) trusts may be declared informally (orally or even by conduct -– see [ case ], in Chapter 3) unless there is a specific requirement for them to be declared in writing.
Answer
Paul v Constance [1977] 1 WLR 527

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Lifetime (or inter vivos) trusts may be declared informally (orally or even by conduct -– see Paul v Constance [1977] 1 WLR 527, in Chapter 3) unless there is a specific requirement for them to be declared in writing.

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Flashcard 1378195737868

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Question
Lifetime (or inter vivos) trusts may be declared informally (orally or even by conduct -– see Paul v Constance [1977] 1 WLR 527, in Chapter 3) unless [...].
Answer
there is a specific requirement for them to be declared in writing

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Lifetime (or inter vivos) trusts may be declared informally (orally or even by conduct -– see Paul v Constance [1977] 1 WLR 527, in Chapter 3) unless there is a specific requirement for them to be declared in writing.

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Flashcard 1378196786444

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Question
Lifetime (or inter vivos) trusts may be [...] -– see Paul v Constance [1977] 1 WLR 527, in Chapter 3) unless there is a specific requirement for them to be declared in writing.
Answer
declared informally (orally or even by conduct

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Lifetime (or inter vivos) trusts may be declared informally (orally or even by conduct -– see Paul v Constance [1977] 1 WLR 527, in Chapter 3) unless there is a specific requirement for them to be declared in writing.

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Flashcard 1378197835020

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It is noteworthy that to prevent formalities requirements causing unjust results the requirements set out below in the Law of Property Act 1925, s 53(1) do not affect the creation or operation of [...] which necessarily arise informally: see s 53(2).
Answer
resulting or constructive trusts

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It is noteworthy that to prevent formalities requirements causing unjust results the requirements set out below in the Law of Property Act 1925, s 53(1) do not affect the creation or operation of resulting or constructive trusts which necessarily arise informally: see s 53(2).

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Flashcard 1378198883596

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Question
It is noteworthy that to prevent formalities requirements causing unjust results the requirements set out below in the Law of Property Act 1925, s 53(1) do not affect the creation or operation of resulting or constructive trusts which necessarily arise informally: see [ statute ].
Answer
s 53(2)

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vent formalities requirements causing unjust results the requirements set out below in the Law of Property Act 1925, s 53(1) do not affect the creation or operation of resulting or constructive trusts which necessarily arise informally: see <span>s 53(2).<span><body><html>

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Flashcard 1378200718604

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Question
[ statute ] disapplies s 53(1)(c) for the transfer of equitable interests in shares in public companies the title to which is held by custodians under an electronic trading system owned and operated by CREST Co Ltd. This is vital for the efficient share trading of shares in public companies.
Answer
Regulation 38(5) of the Uncertificated Securities Regulations 2001, SI 2001/3755

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Regulation 38(5) of the Uncertificated Securities Regulations 2001, SI 2001/3755 disapplies s 53(1)(c) for the transfer of equitable interests in shares in public companies the title to which is held by custodians under an electronic trading system owned and operat

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Flashcard 1378202553612

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Unfortunately, without full consideration of the issue, Lawrence Collins LJ, obiter dicta in [ case ] opined that declarations of sub-trusts fell outside s 53(1)(c ), while in Kaye v Zeutal [2010] EWCA Civ 159 at [37] the court assumed that this was the case.
Answer
Nelson v Greening and Sykes (Builders) Ltd [2007] EWCA Civ 1358 at [56-58]

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Unfortunately, without full consideration of the issue, Lawrence Collins LJ, obiter dicta in Nelson v Greening and Sykes (Builders) Ltd [2007] EWCA Civ 1358 at [56-58] opined that declarations of sub-trusts fell outside s 53(1)(c ), while in Kaye v Zeutal [2010] EWCA Civ 159 at [37] the court assumed that this was the case.

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Flashcard 1378204388620

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Question
Unfortunately, without full consideration of the issue, Lawrence Collins LJ, obiter dicta in Nelson v Greening and Sykes (Builders) Ltd [2007] EWCA Civ 1358 at [56-58] opined that [...], while in Kaye v Zeutal [2010] EWCA Civ 159 at [37] the court assumed that this was the case.
Answer
declarations of sub-trusts fell outside s 53(1)(c )

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Unfortunately, without full consideration of the issue, Lawrence Collins LJ, obiter dicta in Nelson v Greening and Sykes (Builders) Ltd [2007] EWCA Civ 1358 at [56-58] opined that declarations of sub-trusts fell outside s 53(1)(c ), while in Kaye v Zeutal [2010] EWCA Civ 159 at [37] the court assumed that this was the case.

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Flashcard 1378205437196

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Question
Unfortunately, without full consideration of the issue, Lawrence Collins LJ, obiter dicta in Nelson v Greening and Sykes (Builders) Ltd [2007] EWCA Civ 1358 at [56-58] opined that declarations of sub-trusts fell outside s 53(1)(c ), while in [case] at [37] the court assumed that this was the case.
Answer
Kaye v Zeutal [2010] EWCA Civ 159

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fortunately, without full consideration of the issue, Lawrence Collins LJ, obiter dicta in Nelson v Greening and Sykes (Builders) Ltd [2007] EWCA Civ 1358 at [56-58] opined that declarations of sub-trusts fell outside s 53(1)(c ), while in <span>Kaye v Zeutal [2010] EWCA Civ 159 at [37] the court assumed that this was the case.<span><body><html>

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Flashcard 1378207272204

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Question
In [ case ], CA held that a contract for valuable consideration to assign an equitable interest in shares in a private company operated to transfer the interest, despite the absence of writing required by s53(1)(c) LPA 1925. The making of a specifically enforceable contract creates a constructive trust in favour of the transferee, so the s 53(2 exception for ‘the creation and operation of resulting or constructive trusts’ applies and dispenses with the requirement for writing under s53(1)(c).
Answer
Neville v Wilson [1996] 3 All ER 171

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In Neville v Wilson [1996] 3 All ER 171, CA held that a contract for valuable consideration to assign an equitable interest in shares in a private company operated to transfer the interest, despite the absence of writing re

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Flashcard 1378209107212

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Question
In Neville v Wilson [1996] 3 All ER 171, CA held that [...], despite the absence of writing required by s53(1)(c) LPA 1925. The making of a specifically enforceable contract creates a constructive trust in favour of the transferee, so the s 53(2 exception for ‘the creation and operation of resulting or constructive trusts’ applies and dispenses with the requirement for writing under s53(1)(c).
Answer
a contract for valuable consideration to assign an equitable interest in shares in a private company operated to transfer the interest

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In Neville v Wilson [1996] 3 All ER 171, CA held that a contract for valuable consideration to assign an equitable interest in shares in a private company operated to transfer the interest, despite the absence of writing required by s53(1)(c) LPA 1925. The making of a specifically enforceable contract creates a constructive trust in favour of the transferee, so the s 5

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Flashcard 1378210155788

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Question
See the case of [ case ], where the Court of Appeal refused to construe an imperfect transfer of legal title to shares as an assignment of the equitable interest within s 53 (1) (c), as that was not what was intended, and also the document had not been signed by the equitable owner; it had been signed by their trustee, but the trustee had not been authorised as an agent for the purpose of s 53 (1) (c).
Answer
Zeital v Kaye [2010] EWCA Civ 159

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See the case of Zeital v Kaye [2010] EWCA Civ 159, where the Court of Appeal refused to construe an imperfect transfer of legal title to shares as an assignment of the equitable interest within s 53 (1) (c), as that was not what was

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Flashcard 1378211990796

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Question
[statute] allows for signature by an agent but only if they have been given written authorisation for this.
Answer
Section 53(1)(c)

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Section 53(1)(c) allows for signature by an agent but only if they have been given written authorisation for this.

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Flashcard 1378213825804

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Question
Section 53(1)(c) allows for [...].
Answer
signature by an agent but only if they have been given written authorisation for this

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Section 53(1)(c) allows for signature by an agent but only if they have been given written authorisation for this.

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Flashcard 1378214874380

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Question
Section 53(1)(b) applies to express trusts; LPA 1925, s 53(2) provides that the requirements of s 53(1) do not affect the creation or operation of implied, resulting and constructive trusts. Section 53(2) exempts these trusts from the need for writing. A good example of the operation of s 53(2) is the case of [ case ].
Answer
Hodgson v Marks [1971] Ch 892

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t the requirements of s 53(1) do not affect the creation or operation of implied, resulting and constructive trusts. Section 53(2) exempts these trusts from the need for writing. A good example of the operation of s 53(2) is the case of <span>Hodgson v Marks [1971] Ch 892.<span><body><html>

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Flashcard 1378216709388

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Question
Section 53(1)(b) applies to [...]; LPA 1925, s 53(2) provides that the requirements of s 53(1) do not affect the creation or operation of implied, resulting and constructive trusts. Section 53(2) exempts these trusts from the need for writing. A good example of the operation of s 53(2) is the case of Hodgson v Marks [1971] Ch 892.
Answer
express trusts

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Section 53(1)(b) applies to express trusts; LPA 1925, s 53(2) provides that the requirements of s 53(1) do not affect the creation or operation of implied, resulting and constructive trusts. Section 53(2) exempts these trusts

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Flashcard 1378217757964

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Question
Section 53(1)(b) applies to express trusts; LPA 1925, s [...] provides that the requirements of s 53(1) do not affect the creation or operation of implied, resulting and constructive trusts. Section 53(2) exempts these trusts from the need for writing. A good example of the operation of s 53(2) is the case of Hodgson v Marks [1971] Ch 892.
Answer
53(2)

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Section 53(1)(b) applies to express trusts; LPA 1925, s 53(2) provides that the requirements of s 53(1) do not affect the creation or operation of implied, resulting and constructive trusts. Section 53(2) exempts these trusts from the need for w

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Flashcard 1378218806540

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Question
Section 53(1)(b) applies to express trusts; LPA 1925, s 53(2) provides that the requirements of s 53(1) do not affect [...]. Section 53(2) exempts these trusts from the need for writing. A good example of the operation of s 53(2) is the case of Hodgson v Marks [1971] Ch 892.
Answer
the creation or operation of implied, resulting and constructive trusts

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Section 53(1)(b) applies to express trusts; LPA 1925, s 53(2) provides that the requirements of s 53(1) do not affect the creation or operation of implied, resulting and constructive trusts. Section 53(2) exempts these trusts from the need for writing. A good example of the operation of s 53(2) is the case of Hodgson v Marks [1971] Ch 892.

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Flashcard 1378219855116

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Question
If a person wishes to create a trust on death, they must comply with the [ statute ]. All testamentary dispositions (including trusts) must be in writing, signed by the testator in the presence of two witnesses present at the same time who must attest their witnessing of the signature.
Answer
Wills Act 1837, s 9

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If a person wishes to create a trust on death, they must comply with the Wills Act 1837, s 9. All testamentary dispositions (including trusts) must be in writing, signed by the testator in the presence of two witnesses present at the same time who must attest their witnessi

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Flashcard 1378221690124

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Question
If a person wishes to create a trust on death, they must comply with the Wills Act 1837, s 9. All testamentary dispositions (including trusts) must be [...].
Answer
in writing, signed by the testator in the presence of two witnesses present at the same time who must attest their witnessing of the signature

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If a person wishes to create a trust on death, they must comply with the Wills Act 1837, s 9. All testamentary dispositions (including trusts) must be in writing, signed by the testator in the presence of two witnesses present at the same time who must attest their witnessing of the signature.

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Flashcard 1378222738700

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Question
The Law of Property Act 1925, s [ statute ] sets out the formalities for the disposition of a subsisting (or pre-existing) equitable interest, whether in land or pure personalty. The interest is subsisting in the sense that, before the disposition in question, legal and equitable ownership have been separated. Section 53(1)(c) states ‘A disposition of an equitable interest subsisting at the time of the disposition must be in writing signed by the person disposing of the same or by his agent lawfully authorised in writing or by will.’ Failure to comply with s 53(1)(c) makes the disposition void.
Answer
53(1)(c)

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The Law of Property Act 1925, s 53(1)(c) sets out the formalities for the disposition of a subsisting (or pre-existing) equitable interest, whether in land or pure personalty. The interest is subsisting in the sense that, be

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Flashcard 1378224573708

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Question
The Law of Property Act 1925, s 53(1)(c) sets out the formalities for the disposition of a subsisting (or pre-existing) equitable interest, whether in land or pure personalty. The interest is subsisting in the sense that, before the disposition in question, legal and equitable ownership have been separated. Section 53(1)(c) states ‘A disposition of an equitable interest subsisting at the time of the disposition must be [...].’ Failure to comply with s 53(1)(c) makes the disposition void.
Answer
in writing signed by the person disposing of the same or by his agent lawfully authorised in writing or by will

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rest is subsisting in the sense that, before the disposition in question, legal and equitable ownership have been separated. Section 53(1)(c) states ‘A disposition of an equitable interest subsisting at the time of the disposition must be <span>in writing signed by the person disposing of the same or by his agent lawfully authorised in writing or by will.’ Failure to comply with s 53(1)(c) makes the disposition void.<span><body><html>

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Flashcard 1378225622284

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Question
The Law of Property Act 1925, s 53(1)(c) sets out the formalities for the disposition of a subsisting (or pre-existing) equitable interest, whether in land or pure personalty. The interest is subsisting in the sense that, before the disposition in question, legal and equitable ownership have been separated. Section 53(1)(c) states ‘A disposition of an equitable interest subsisting at the time of the disposition must be in writing signed by the person disposing of the same or by his agent lawfully authorised in writing or by will.’ Failure to comply with s 53(1)(c) makes the disposition [...].
Answer
void

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equitable interest subsisting at the time of the disposition must be in writing signed by the person disposing of the same or by his agent lawfully authorised in writing or by will.’ Failure to comply with s 53(1)(c) makes the disposition <span>void.<span><body><html>

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Flashcard 1378226670860

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Question
A distinction is drawn between:
IMPERATIVE words, showing an intention to create a legally binding obligation, which will create a trust; and
PRECATORY words, merely expressing a hope or wish, rather than imposing an obligation, which [...].
Answer
will not generally create a trust

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distinction is drawn between: IMPERATIVE words, showing an intention to create a legally binding obligation, which will create a trust; and PRECATORY words, merely expressing a hope or wish, rather than imposing an obligation, which <span>will not generally create a trust.<span><body><html>

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Flashcard 1378227719436

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Question
A distinction is drawn between:
IMPERATIVE words, showing an intention to create a legally binding obligation, which [...]; and
PRECATORY words, merely expressing a hope or wish, rather than imposing an obligation, which will not generally create a trust.
Answer
will create a trust

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A distinction is drawn between: IMPERATIVE words, showing an intention to create a legally binding obligation, which will create a trust; and PRECATORY words, merely expressing a hope or wish, rather than imposing an obligation, which will not generally create a trust.

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Flashcard 1378228768012

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Question
A distinction is drawn between:
IMPERATIVE words, showing [...], which will create a trust; and
PRECATORY words, merely expressing a hope or wish, rather than imposing an obligation, which will not generally create a trust.
Answer
an intention to create a legally binding obligation

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A distinction is drawn between: IMPERATIVE words, showing an intention to create a legally binding obligation, which will create a trust; and PRECATORY words, merely expressing a hope or wish, rather than imposing an obligation, which will not generally create a trust.

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Flashcard 1378229816588

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Question
A distinction is drawn between:
IMPERATIVE words, showing an intention to create a legally binding obligation, which will create a trust; and
PRECATORY words, merely expressing [...], which will not generally create a trust.
Answer
a hope or wish, rather than imposing an obligation

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A distinction is drawn between: IMPERATIVE words, showing an intention to create a legally binding obligation, which will create a trust; and PRECATORY words, merely expressing a hope or wish, rather than imposing an obligation, which will not generally create a trust.

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Flashcard 1378230865164

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Question
The turning point is said to be the case of [ case ], where property had been left by the testator to his widow ‘to be at her disposal in any way she may think best, for the benefit of herself and her family’. The widow gave part of the assets by will to someone who was not a member of the family. The court held that the widow was absolutely entitled to the property and could make a valid gift of it to anyone. Referring to the earlier case law (from which the Court of Appeal departed), James LJ said:

. . . in hearing case after case cited, I could not help feeling that the officious kindness of the Court of Chancery in interposing trusts where in many cases the father of the family never meant to create trusts, must have been a very cruel kindness indeed.

Answer
Lambe v Eames (1871) 6 Ch App 597

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The turning point is said to be the case of Lambe v Eames (1871) 6 Ch App 597, where property had been left by the testator to his widow ‘to be at her disposal in any way she may think best, for the benefit of herself and her family’. The widow gave part of the a

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Flashcard 1378232700172

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Question
The turning point is said to be the case of Lambe v Eames (1871) 6 Ch App 597, where property had been left by the testator to his widow ‘to be at her disposal in any way she may think best, for the benefit of herself and her family’. The widow gave part of the assets by will to someone who was not a member of the family. The court held that [...]. Referring to the earlier case law (from which the Court of Appeal departed), James LJ said:

. . . in hearing case after case cited, I could not help feeling that the officious kindness of the Court of Chancery in interposing trusts where in many cases the father of the family never meant to create trusts, must have been a very cruel kindness indeed.

Answer
the widow was absolutely entitled to the property and could make a valid gift of it to anyone

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n left by the testator to his widow ‘to be at her disposal in any way she may think best, for the benefit of herself and her family’. The widow gave part of the assets by will to someone who was not a member of the family. The court held that <span>the widow was absolutely entitled to the property and could make a valid gift of it to anyone. Referring to the earlier case law (from which the Court of Appeal departed), James LJ said: . . . in hearing case after case cited, I could not help feeling that the offic

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Flashcard 1378233748748

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Question
The importance of construction of the particular words and circumstances is shown by comparing the cases of Re Adams and the Kensington Vestry (1884) 27 Ch D 394 and Comiskey v Bowring-Hanbury [1905] AC 84. These cases show that phrases such as ‘[...]’ may or may not impose a trust. The crucial factor is whether the context of the will as a whole indicates that this was the testator’s intention.
Answer
in full confidence

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mportance of construction of the particular words and circumstances is shown by comparing the cases of Re Adams and the Kensington Vestry (1884) 27 Ch D 394 and Comiskey v Bowring-Hanbury [1905] AC 84. These cases show that phrases such as ‘<span>in full confidence’ may or may not impose a trust. The crucial factor is whether the context of the will as a whole indicates that this was the testator’s intention. <span><body><html>

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Flashcard 1378234797324

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Question
The importance of construction of the particular words and circumstances is shown by comparing the cases of Re Adams and the Kensington Vestry (1884) 27 Ch D 394 and Comiskey v Bowring-Hanbury [1905] AC 84. These cases show that phrases such as ‘in full confidence’ may or may not impose a trust. The crucial factor is whether [...].
Answer
the context of the will as a whole indicates that this was the testator’s intention

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mparing the cases of Re Adams and the Kensington Vestry (1884) 27 Ch D 394 and Comiskey v Bowring-Hanbury [1905] AC 84. These cases show that phrases such as ‘in full confidence’ may or may not impose a trust. The crucial factor is whether <span>the context of the will as a whole indicates that this was the testator’s intention. <span><body><html>

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Flashcard 1378235845900

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Question
The importance of construction of the particular words and circumstances is shown by comparing the cases of Re Adams and the Kensington Vestry (1884) 27 Ch D 394 and [case]. These cases show that phrases such as ‘in full confidence’ may or may not impose a trust. The crucial factor is whether the context of the will as a whole indicates that this was the testator’s intention.
Answer
Comiskey v Bowring-Hanbury [1905] AC 84

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The importance of construction of the particular words and circumstances is shown by comparing the cases of Re Adams and the Kensington Vestry (1884) 27 Ch D 394 and Comiskey v Bowring-Hanbury [1905] AC 84. These cases show that phrases such as ‘in full confidence’ may or may not impose a trust. The crucial factor is whether the context of the will as a whole indicates that this was th

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Flashcard 1378237680908

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Question
There may be a problem where words are used which had been held to create a trust in decisions before the change in attitude. Identical words from an older case may be interpreted in the same way if the whole gift is identically worded, because they may have been used as a precedent. [ case ] suggests that, in such a situation, the earlier decision should be followed unless it is clearly wrong. (The court followed the interpretation given to words in Shelley v Shelley (1868) LR 6 Eq. The will had been prepared with professional help and the case of Shelley had then stood for 80 years.)
Answer
Re Steele’s Will Trust [1948] Ch 603

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ch had been held to create a trust in decisions before the change in attitude. Identical words from an older case may be interpreted in the same way if the whole gift is identically worded, because they may have been used as a precedent. <span>Re Steele’s Will Trust [1948] Ch 603 suggests that, in such a situation, the earlier decision should be followed unless it is clearly wrong. (The court followed the interpretation given to words in Shelley v Shelley (1868

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Flashcard 1378239515916

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Question
There may be a problem where words are used which had been held to create a trust in decisions before the change in attitude. Identical words from an older case may be interpreted in the same way if the whole gift is identically worded, because they may have been used as a precedent. Re Steele’s Will Trust [1948] Ch 603 suggests that, in such a situation, the earlier decision should be followed unless [...]. (The court followed the interpretation given to words in Shelley v Shelley (1868) LR 6 Eq. The will had been prepared with professional help and the case of Shelley had then stood for 80 years.)
Answer
it is clearly wrong

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interpreted in the same way if the whole gift is identically worded, because they may have been used as a precedent. Re Steele’s Will Trust [1948] Ch 603 suggests that, in such a situation, the earlier decision should be followed unless <span>it is clearly wrong. (The court followed the interpretation given to words in Shelley v Shelley (1868) LR 6 Eq. The will had been prepared with professional help and the case of Shelley had then stood fo

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Flashcard 1378240564492

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Question
Where there is no ‘document’ creating a trust, the court must look at [...] to see if there was an intention to create a trust
Answer
the words and/or conduct of the parties

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Where there is no ‘document’ creating a trust, the court must look at the words and/or conduct of the parties to see if there was an intention to create a trust

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Flashcard 1378241613068

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Question
Where there is no ‘document’ creating a trust, the court must look at the words and/or conduct of the parties to see if there was an [...]
Answer
intention to create a trust

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Where there is no ‘document’ creating a trust, the court must look at the words and/or conduct of the parties to see if there was an intention to create a trust

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Flashcard 1378242661644

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Question
If, however, the cheque was paid into an overdrawn account of the company, the money then disappears in discharging the company’s debts so that no trust fund is ever constituted: [ case ].
Answer
Moriarty v Various customers of BA Peters plc [2008] EWCA Civ 1604

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If, however, the cheque was paid into an overdrawn account of the company, the money then disappears in discharging the company’s debts so that no trust fund is ever constituted: Moriarty v Various customers of BA Peters plc [2008] EWCA Civ 1604.

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Flashcard 1378244496652

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Question
If, however, the cheque was paid into an overdrawn account of the company, the money then disappears in discharging the company’s debts so that [...]: Moriarty v Various customers of BA Peters plc [2008] EWCA Civ 1604.
Answer
no trust fund is ever constituted

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If, however, the cheque was paid into an overdrawn account of the company, the money then disappears in discharging the company’s debts so that no trust fund is ever constituted: Moriarty v Various customers of BA Peters plc [2008] EWCA Civ 1604.

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Flashcard 1378245545228

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Question