Self-test questions: Tracing and Following

. Within the equitable rules for identifying misappropriated assets, what is meant by 'following'?

. Within the equitable rules for identifying misappropriated assets, what is meant by 'tracing'?

. In which factual matrix does the ability to trace become imperative?

. Can tracing being described as a claim in itself?

. Under the common law rules on tracing, is it possible to trace into clean substitutions?

. When does it become impossible to trace under the common law into a mixed bulk of tangible property?

. Is it possible to trace under the common law in a bank account?

. Is it possible to trace through the international banking system under common law tracing?

. What relationship is a prerequisite for equitable tracing?

. Which of the following is not a fiduciary relationship?

. Under equitable tracing, is it possible to trace into property purchased from a mixed fund?

. Under the default rule in Re Hallett's Estate, where trust and trustee moneys are mixed in an active bank account, whose money is presumed to have been spent first?

. In Re Oatway, how did the court overcome the injustice of applying the default rule in Re Hallett's Estate?

. Where there is a mixing innocent volunteers' assets, when will Clayton's Case apply?

. Which of the following is not an applicable method of allocating mixed volunteer assets?

. What is the 'lowest intermediate balance'?

. Is 'backwards tracing' possible in English law?

. Which of the following are not elements of proving that an individual is a bona fide purchaser for value?

. Which of the following is not an instance of dissipation?

. Which of the following forms of credit is it possible to trace into?

. In which of the following scenarios would it be inequitable to trace?

. Theodore gave £5,000 to his assistant to buy a painting. Instead of doing so, his assistant absconded with the moneys and purchased a statue instead. Which equitable mechanism will Theodore be using to acquire the statue?

. Aisha recently had a gold necklace misappropriated by a trustee. They then gave the necklace to their partner, who in turn gave it to their child, in whose possession it still remains. Which equitable mechanism will Aisha be using to reacquire the necklace?

. Nez is a dairy farmer who sells their milk to a large dairy factory. The last batch of milk delivered to the factory has not been paid for, and the factory has been declared insolvent. The milk has been mixed with another farmers' milk in a large storage tank. Will Nez be able to trace into the mixed milk?

. Nez, unfortunately, also sold some beef to the local butcher. The butcher has yet to pay for the beef was declared insolvent yesterday. The butcher has mixed Nez's beef with beef from other suppliers and made mince and burgers. Will Nez be able to trace into the mince and burgers?

. Ross is the beneficiary of a trust. The trustee recently misappropriated £45,000 and paid it into his empty bank account. He then transferred £17,000 to another account that has £3,000 already in it. Will it be possible to trace the moneys through common law tracing?

. Alina used her bank's mobile app, and accidentally hit 'send' twice, transferring 2 payments to her landlord, instead of the 1 intended. The landlord has used the second payment to buy a new TV. Will Alina be able to trace into the TV?

. Riyad is the beneficiary of a trust. His trustee has stolen £50,000 from the trust and placed it in their own bank account that had £5,000. The trustee spent £4,500 on dinner and then purchased a car for £32,000. Which tracing rule will be applicable?

. Ferran is a beneficiary of a trust. His trustee has stolen £100,000 from the trust and placed it in his bank account that has £60,000. The trustee initially spent £50,000 on shares, and then spent £45,000 on a party and £45,000 on a holiday. Which tracing rule will be applicable?

. Both the "London" and "Amsterdam" trusts have had assets misappropriated by the same trustee and placed in the same bank account. He has spent 34% of assets. Which method will the courts likely use to determines who receives what of the final assets?

. Tristram recently purchased a car from an individual online. He paid 89% of the market value, with the seller stating the discount was due to the unusual colour and that he needed the moneys to pay for a holiday. It transpires the car was misappropriated from a trust. Will the beneficiaries be able to follow into the car?

. 'Drankey' are a small donkey sanctuary in Norfolk. They recently received a donation from the executors of an elderly man who passed away, and loved cartoon donkeys. They spent the moneys on hay, a new barn and increasing the staff's minimum wage. It has transpired the elderly man's will was invalid. Will the next of kin be able to trace into wrong received moneys?

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