Self-test questions: Introduction to Equity and Trusts

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. What is the legal conception of 'Equity'?

Justice correct incorrect

Fairness correct incorrect

A body of Biblical Law developed by the Catholic Church correct incorrect

A body of law developed by the Courts of Chancery correct incorrect

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. Did Equity develop as a response to the rigidity and inherent limitations of the Common Law?

True correct incorrect

False correct incorrect

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. Which state official was directly responsible for the creation of the Courts of Chancery?

The King correct incorrect

The Archbishop of York correct incorrect

The Earl of Oxford correct incorrect

The Chancellor correct incorrect

The Keeper of the Privy Purse correct incorrect

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. Which case was fundamental in confirming the primacy of Equity over the Common Law?

Fortescue's Case correct incorrect

The Duke of Norfolk's Case correct incorrect

Re Vandervell's Trusts No.2 correct incorrect

Gee v Pritchard correct incorrect

The Earl of Oxford's Case correct incorrect

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. Historically, the decisions in the Chancery Courts were founded upon what factor?

Conscience correct incorrect

Psychology correct incorrect

Phrenology correct incorrect

Precedent correct incorrect

Witchcraft correct incorrect

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. Which of the following factors led to the fusion of the Courts of Chancery and the Common Law courts?

Abuses by officers of the Chancery Courts correct incorrect

Delays in cases being heard correct incorrect

Religious doctrine correct incorrect

Inefficiencies in having cases resolved by two separate court systems correct incorrect

The personal views of Lord Eldon correct incorrect

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. Which Acts of Parliament fused the Common Law courts and Courts of Chancery?

Supreme Court Act 1981 correct incorrect

Judicature Act 1873 and 1875 correct incorrect

Law of Property Act 1925 correct incorrect

Human Rights Act 1998 correct incorrect

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. When a trust is created, what two things are separate?

The beneficial and legal title correct incorrect

The right to manage and the right to use the property correct incorrect

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. What major historical event is said to have brought about the creation of the trust?

The Reformation correct incorrect

The Wars of the Roses correct incorrect

The Crusades correct incorrect

The Norman Conquests correct incorrect

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. Which party creates a trust?

The beneficiary correct incorrect

The trustee correct incorrect

The donee correct incorrect

The settlor correct incorrect

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. The donee to a hybrid power can be compelled by the court to exercise his discretion. Is this statement true or false?

True correct incorrect

False correct incorrect

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. Which of the following is not an equitable maxim?

He who weeks equity must do equity correct incorrect

Equity favours justice over form correct incorrect

Delay defeats equity correct incorrect

Equity acts in personam correct incorrect

Equity follows the law correct incorrect

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. What best describes the functions of the average trustee?

To sell all trust property to the highest bidder correct incorrect

To store property safely until required to distribute it correct incorrect

To actively manage the trust property in accordance with the terms of the trust correct incorrect

To destroy the trust property correct incorrect

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. Which Act of Parliament confirmed the primacy of Equity over the Common Law?

Judicature Act 1873 correct incorrect

Joint Stock Companies Act 1844 correct incorrect

Law of Property Act 1925 correct incorrect

Land Registration Act 1925 correct incorrect

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. In 1850, John purchased a desk from Charles for £500, which was to be delivered in January 1851. However, in breach of contract, Charles refused to deliver the desk, and John brought a claim for breach of contract and requested the remedy of specific performance. Which court(s) would John have had to bring a claim in to get his desired remedy in 1851?

The Common Law Courts only correct incorrect

The Courts of Chancery only correct incorrect

The Star Chamber correct incorrect

Both the Common Law courts and the Courts of Chancery correct incorrect

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. Last week, Simeon purchased a table lamp for £78 from "We Sell Premium Lamps for Cheap". The lamp was due to be delivered this week, but was not. It is a one-of-a-kind lamp from an up-and-coming artist, and is irreplaceable. Simeon wishes to bring a claim for breach of contract and wants to use the remedy of specific performance. In which court should he bring his claim?

The County Court correct incorrect

The Courts of Chancery correct incorrect

The Employment Tribunal correct incorrect

The Supreme Court correct incorrect

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. Rita has a covenant over the neighbouring land to her house that states only a single storey building (ie a bungalow) can be built. Three years ago, with Rita's knowledge, her neighbour's built a seven-storey block of flats. Rita has now decided she wants to enforce her covenant and get an injunction to have the block of flats torn down. Which equitable maxim will apply?

Equity regards as done what ought to be done correct incorrect

Equality is equity correct incorrect

Delay defeats equity correct incorrect

Equity follows the law correct incorrect

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. Last year, Thomas needed to get a loan to prop up his failing business. To do so, he pressured his wife, Susanne, into agreeing to a second mortgage on their property from WeDon'tAskQuestions Bank. When the mortgage documents were signed in front of the Bank's representative, Susanne hesitated and said she would not sign the documents. Thomas then said, 'if you don't sign, I'll take away the kids and divorce you". Susanne then signed the documents, but the Bank's representative merely said, "thank God you got her to agree – if you hadn't we would have had to threaten her". Which equitable maxim will apply to the Bank's claim when they try and enforce the mortgage against Susanne?

Delay defeats equity correct incorrect

Equity looks to the intent rather than the form correct incorrect

Equity follows the law correct incorrect

He who comes to equity must come with clean hands correct incorrect

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. Gerald is 97 years old, and has decided that he wishes to leave some property to his 'most deserving grandchildren'. He wants to leave £78,000, and because this is a large amount, wants the person who will distribute the property and the person making the decision of who is the 'most deserving' to be different people. What would be the most appropriate equitable mechanism(s) to achieve Gerald's wishes?

A mere power correct incorrect

A mere power and a trust correct incorrect

A discretionary trust correct incorrect

A bare trust correct incorrect

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. Kenneth wants to set up a fund to help the employees of Hopkins' Food and Drink Distributors who need help with deposits to buy a house and are 'worthy' of the extra support. The only person he trusts to look after his money is his former English teacher, Kerrie, who is to receive the moneys and make the decisions on who should receive the property. What would be the most appropriate equitable mechanism(s) to achieve Kenneth's wishes?

A bare trust correct incorrect

A mere power correct incorrect

A hybrid power correct incorrect

A discretionary trust correct incorrect