Chapter 7 Multiple choice questions

. Which case is the correct authority for the 'beneficiary principle'?

Re Endacott [1960] Ch 232.

Morice v Bishop of Durham (1804) 9 Ves Jr 399.

Re Dean (1899) 41 Ch D 552.

Re Astors ST [1952] Ch 534.

. Which of the following are the exceptions to the rule that trusts must have a human beneficiary to be valid?
i - Private masses
ii - Charities
iii - Upkeep of specific animals
iv - Upkeep of animals generally
v - Maintenance and erection of monuments
vi - Miscellaneous purposes
vii - Discretionary trusts

i, ii, iii, v, and vi only.

All of the listed categories.

i, iii, v, and vi only.

i, iii, iii, v, vi, and vii only.

. How has the Perpetuities and Accumulations Act 2009 altered the rules on perpetuities?

It states that property must not be held on trust for more than 80 years.

It has extended the period from a life in being plus 21 years to a period of 80 years when the trust is held to see if it can be validated by vesting within that period.

In relation to the rule on inalienability is has extended the period from a life in being plus 21 years to a period of 125 years when the trust is held to see if it can be validated by vesting within that period. It does not affect the rule on remoteness of vesting.

In relation to the remoteness of vesting is has extended the period from a life in being plus 21 years to a period of 125 years when the trust is held to see if it can be validated by vesting within that period, for trusts created after 6^th April 2010 It does not affect the rule on inalienability.

. Which statement most closely states the rule on inalienability?

Property left for a purpose cannot be applied for a period more than a life in being plus 21 years.

Property must vest in a person within a life in being plus 21 years.

Property left for a purpose cannot be applied for more than 21 years.

Property must be given away to a charity at the end of the perpetuity period.

. Why did the bequest for the erection of a monument succeed but the bequest for the maintenance of the monument fail in Mussett v Bingle [1876] WN 170?

The court found that the erection of the monument was an anomalous exception but maintenance was not.

The court felt that the monument would be erected within the perpetuity period but the maintenance would last more than 80 years.

The court felt that the erection of the monument would benefit the community but that the maintenance was not needed.

The court found that the erection of the monument would be complete within the perpetuity period but the failure to limit the period of maintenance to the perpetuity period meant it failed at the outset.

. What do you think would not be an example of an unincorporated association?

Kenning Village Garden Club.

Kenning Village Book Club.

Bigger Stores Ltd.

Kenning Village Sports Club.

. What are the methods of interpreting a gift to an unincorporated association identified in Re Recher's WT [1972] Ch 526?
i - An outright gift to the members to hold as joint tenant or tenants in common.
ii - A trust for the association's purpose.
iii - A trust for the unincorporated association
iv - A trust for the members and future members of the association.
v - An outright gift to the members as joint tenants subject to their contractual obligations.

i, ii, iv, and v only.

All of them are valid interpretations.

i, iv, and v only.

v only.

. What would need to be proved for the contractual analysis of a gift to an unincorporated association to work?

For all the members to agree to take the gift.

For the members to be in control of their own finances separate from any controlling external body.

For the members to be in control of their own finances separate from any controlling external body and have a contractual agreement regulating how their property is held.

The perpetuity period would need to be set and they would need to be in control of their finances.

. Why did Lord Goff in Re Denley's Trust Deed [1969] 1 Ch 373 hold that there was a valid trust.

It was valid because there were identifiable people who could enforce the trust.

It was valid because the members of the club each had a vested beneficial interest.

It was valid because the trustee could use his discretion in applying the money.

It was valid because it was an anomalous exception.

. Which is the correct case authority to show that a loan given for a particular purpose which is not carried out is held on resulting trust for the lender?

Twinsectra v Yardley [2002] 2 AC 164.

Leahy v AG for New South Wales [1959] AC 457.

Barclays Bank v Quistclose [1970] AC 567.

Re Lipinski's WT [1976] Ch 235.

Chapter 7 Multiple choice questions

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