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. What would be the correct authority for the test for accessory liability (dishonest assistance)?

The test as stated by the majority in Twinsectra vYardley; that the honest and reasonable person would consider the conduct dishonest and that the defendant is aware that they would see it so. correct incorrect

The test has been confirmed as that stated by Lord Nicholls in Royal Brunei v Tan – that an honest and reasonable person would see the conduct as dishonest in the circumstances as known to the defendant. correct incorrect

It is the same test as dishonesty as for criminal law. correct incorrect

The test is one of strict liability correct incorrect

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. What is meant by backward tracing?

If money taken in breach is paid into an overdrawn account, or used to repay a debt then if the overdraft or debt was incurred to purchase an asset that asset can be claimed by the claimant as their property. correct incorrect

That all property purchased by the trustee in breach can be recovered. correct incorrect

That when the breach is discovered all past transactions are assessed to find the assets belonging to the claimant. correct incorrect

There is no such thing as backward tracing. correct incorrect

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. Re Oatway has said that is the asset traced by the claimant has decreased in value then an equitable lien can be placed against the property. What is the purpose of this?

This is a proprietary remedy available as an alternative to tracing. correct incorrect

This places the claimant as a creditor on the assets of the trustee. correct incorrect

An equitable lien is proof that you have an equitable proprietary interest in the property in proportion to their contribution. correct incorrect

The purpose of this is to protect any personal claims by the claimant; it is not a proprietary remedy. When the personal claim is made the amount claimed is secured against the traced asset (so the claimant is a secured creditor). correct incorrect

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. When two innocent parties money is mixed in a bank account then which rule would determine which money is assumed to be withdrawn first?

Re Hallet's and Re Oatway would apply. correct incorrect

The rule in Re Clayton's, which is first in first out, is applied. Unless this would cause an inequitable result or is clearly not the intention of the contributors. correct incorrect

Either Re Hallet's or Clayton's would apply whichever is most favourable to the claimant. correct incorrect

Barlow Clowes v Vaughan. correct incorrect

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. What is the problem caused by the majority decision in Twinsectra v Yardley?

The problem is that not all the judges agree so is not as authoritative as unanimous decisions. correct incorrect

There is no problem with the decision as it has now been clarified in the Privy Council in Barlow Clowes v Eurotrust. correct incorrect

The decision of the House of Lords (now the Supreme Court) creates binding authority for the House (subject to the Practice Statement 1966) and lower courts. The decisions in Royal Brunei v Tan and Barlow Clowes v Eurotrust are Privy Council, which is merely persuasive authority. The decisions in the Court of Appeal are therefore contrary to binding precedent and weakened. correct incorrect

The judges should always agree before they deliver a decision. correct incorrect