Chapter 3 Scenario Questions

Heidi holds money on trust for Ida. Ida declares that she holds the money on trust for Johan.
What are the respective rights of each of the parties?

Heidi is vested with the legal title and holds the equitable interest on trust for Johan.

Heidi is vested with the legal title and holds the equitable interest on trust for Ida, who holds her equitable interest on trust for Johan.

Ida is vested with the legal title and holds the equitable interest on trust for Johan.

It is not possible for Ida to declare a trust over her equitable interest, so Heidi is vested with the legal title and holds the equitable interest on trust for Ida.

Lois holds property on trust for Manion. In breach of trust, Lois sells the property to Nellie, a good faith purchaser.
What happens to Manion's equitable proprietary interest?

Manion's equitable interest is overreached so that he gets an equitable proprietary interest in the proceeds from the sale to Nellie.

Nellie cannot acquire the legal title to the property as the transaction from Lois was unauthorized.

Nellie acquires the legal title to the property and overrides Manion's equitable proprietary interest so that it is destroyed.

Nellie acquires the legal title to the property but cannot override Manion's equitable proprietary interest.

Miriam owns a bakery. Nigel holds the ovens and equipment on trust for Miriam. Oscar refurbishes the ovens and equipment but does so negligently, breaking the equipment.
Can Miriam sue Oscar for the consequential economic loss in having to close the bakery whilst the equipment is repaired?

Miriam can sue Oscar for the consequential economic loss if Nigel, the legal owner, joined as a party to the proceedings.

Miriam has no claim against Oscar for consequential economic loss as she is not the legal owner of the ovens and cooking equipment.

As the beneficial owner, Miriam is entitled to sue Oscar in her own right for the consequential economic loss.

Only Nigel could sue Oscar and as Nigel suffered no consequential economic loss, he cannot bring a claim.

Sam is Veronica's agent. Veronica transfers legal title to her car to Sam. Alex, Sam's accountant, realized she had confused some of the numbers and owed Sam £100 which Alex gave to Veronica as Sam's agent, and which Veronica kept in a separate account from her own money.
What are Sam's property rights in relation to the car and the money?

Veronica holds the car and the £100 on trust for Sam.

Veronica holds the car on trust for Sam and is personally liable to account to Sam for the value of the £100.

Veronica is personally liable to account for the value of the car to Sam and is personally liable to account to Sam for the value of the £100.

Veronica is personally liable to account for the value of the car to Sam and holds the £100 on trust for Sam.

Colin holds property on trust for his employees and their relatives. The trust instrument states that 'every year, the trustee must consider whether to apply the income in favour of the objects under the trust'.
What type of power does Colin hold?

A trust power.

A fiduciary power.

A mere power.

No power.

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