Chapter 8 Multiple choice questions

. What is legal personality?

A contract between members of a club

A trust for the members of a club

Corporate status

The capacity to own property and to be the subject of legal rights and duties

. Who were the beneficiaries of the trust in In re Drummond [1914] 2 Ch 90?

Bradford Grammar School

The Old Bradfordians' Club

The old boys and members of the school

The committee of the club

. In Leahy v A-G for New South Wales [1959] AC 457 why could not an unincorporated association be a trust for its members?

Because it would infringe the perpetuity rule

Because each member could remove their share

Because a trust for a purpose is not permitted

Because it would be uncertain who all the beneficiaries were

. Neville Estates v Madden & Others [1962] Ch 832 gave three possible interpretations of the legal effect of a gift to an unincorporated association. Which of the following was not one of them?

The members of the unincorporated association hold the association property as joint tenants

The members of the unincorporated association hold the association property under a multilateral contract

The association property is held on trust for a purpose

The association property is held on trust for the members

. Why was it possible for an unincorporated association to be accepted as a trust in In re Denley's Trust Deed [1969] 1 Ch. 373?

The trust was for the benefit of identifiable beneficiaries

The trust would end within 21 years of the death of certain named persons

The trust could be enforced

Leahy v A-G for New South Wales [1959] AC 457 was incorrectly decided

. What is the main problem with the contract theory of unincorporated associations?

An unincorporated association is really a trust

Contracts must be in writing

Unincorporated associations are actually charitable trusts

The unincorporated association must have clear rules

. In In Re Printers and Transferrers [1899] 2 Ch 184 the society's funds were divided between the members of the society, but in Cunnack v Edwards [1896] 2 Ch 679 the society's funds went to the Crown. What is the legal reason for the different treatment of the society's funds?

In Printers, there were living members, but in Cunnack the members were all dead

In Printers the society was to provide for the members, in Cunnack the society was to provide for their widows

In Printers the society was a private trust, but in Cunnack the society was a charity

In Printers the society was a trust, but in Cunnack the society was a contract between the members.

. It was decided in Hanchett-Stamford v Attorney-General [2009] Ch 173, that Mrs Hanchett-Stamford was entitled to all the remaining funds of the Performing and Captive Animals Defence League. Why?

Because she was contractually entitled to those funds.

Because the Crown did not make a claim for bona vacantia

Because she was the last surviving beneficiary of the trust

Because the Performing and Captive Animals Defence League was not a charity

. According to the case law, the assets of a dissolved unincorporated association can be distributed in a number of ways. Which of the following distributions would not be possible?

The assets are divided equally on resulting trust

The assets go to the crown as bona vacantia (ownerless goods)

The assets are divided according to the contractual rights of the members

The assets are held for contributors, in proportion to their contribution, on resulting trust

. Why are purpose trusts not allowed?

Because they infringe the perpetuity rule

Because it is undesirable to devote funds to socially undesirable purposes

Because there is no one to enforce them

Because purpose trusts are too vague

Chapter 8 Multiple choice questions

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