Chapter 5 Self-Test Questions

Which of the following declarations of trust require signed writing to be valid?

Express trusts of land.

Express trusts of shares.

Express trusts of money.

Constructive trusts of land.

What happens if the requirement of signed writing is not fulfilled?

The trust is void.

The trust is valid and enforceable.

The trust is valid but unenforceable.

The trust is voidable.

What is a half-secret trust?

A trust declared in a will in which half of the beneficiaries are secret.

A trust declared in a will in which it is made clear that the property is to be held by a named person for the benefit of an unnamed person.

A trust declared in a will in which the trustee is not named.

A trust declared in a will in which the trustee is to be determined at a later date.

What is a fully secret trust?

A trust declared in a will in which all of the beneficiaries are to be determined at a later date.

A trust declared in a will in which the trust property is not yet known.

A gift in a will to a named person, but the testator separately communicates to that named person that she intends her to hold the property on trust for the benefit of another.

A gift in a will to an unnamed person.

What happens if the formalities for the creation of a half-secret or fully secret trust are not met?

The named recipient is entitled to keep the property.

The property will be held on resulting trust for those entitled to the testator's residuary estate.

There are no formalities for the creation of a half-secret or fully secret trust.

It is still possible for the intended beneficiary under the trust to enforce the obligation.

What happens if the declaration of trust and the trust constitution do not occur simultaneously?

The trust will fail.

As long as trust declaration and constitution occur on the same day, the trust is valid.

The trust is valid but unenforceable.

There is no need for simultaneity; declaration and constitution can occur at different times.

Under the rule in Re Rose, what must the donor do in order for Equity to recognize a constructive trust?

Everything they are able to do.

Most of the things required of them.

Everything essential for them to do.

Everything they are able to do with the exception of acquiring a third party's consent.

Why was a constructive trust recognized in Pennington v Waine despite the donor not having done everything necessary to transfer the shares?

It was the agent's fault that not everything was done and so it would be unfair to frustrate the principal's intentions.

The donee had been told of the gift and so it would have been unconscionable to revoke the gift.

The donor had done most of the things required of her and so it seemed harsh to frustrate her intentions.

The donee had relied on the intended gift.

'Under the Contracts (Rights of Third Parties) Act 1999, a third party is able to enforce a term in the contract only if they have provided consideration.'

True.

False.

A is embarking on a hazardous journey around the world and declares that in the event of her death she would make a gift of a valuable watch to B. If A survives, however, she wishes to keep the watch. The watch is kept in A's house.
A dies. Is there a valid gift of the watch to B?

Yes, due to donatio mortis causa A can make a gift to B in contemplation of her death.

No, B is a volunteer and so Equity will not assist in completing the gift.

No, the watch was not delivered to B and so the doctrine of donatio mortis causa cannot apply.

No, as A's death was caused by a hazardous journey instead of an illness it cannot be said that A's death was impending.

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