Chapter 7 Scenario Questions

Lucille left property to Charity A, including a vintage car to be kept in good repair. If Charity A fails to keep the car in good repair, then it is to be transferred to Charity B.
Is this a valid arrangement?

The gift to the charity is for a non-charitable purpose and so is void.

The gift does not impose an obligation but a power and so it is valid.

It is not possible to attach powers to gifts to charities and so it is void.

The gift amounts to a non-charitable purpose trust and so it is void.

Tobias left in his will a clubhouse, changing rooms, and football pitch for his local football club. In his will, he stated that he was leaving the property 'for the purposes of the club to encourage the joy of football'.
Is this a valid trust?

This is a non-charitable purpose trust and so it is void.

Contract-holding theory is unavailable as the settlor intended the property to be held for the purposes of the association and so the trust is void.

Unincorporated associations are an exception to the rule against non-charitable purpose trusts and so the trust is valid.

The property will directly benefit the members of the association and so falls within the Denley principle and is a valid trust.

X is an unincorporated association which held several buildings on trust for the members of the association. There were lots of different classes of member, including full, associate, honorary, temporary, and junior members. X sold the buildings.
How are the proceeds of sale to be distributed among the members?

Every member gets a proportionate share of the proceeds.

Every member gets a proportionate share of the proceeds as determined by the period of time that they have been a member.

Every member except honorary and junior members are entitled to a proportionate share.

Every member who can vote is entitled to a proportionate share.

Money paid by identified donors for the purposes of X, an unincorporated association, is held on express trust. X is dissolved.
What happens to the property?

It is held on resulting trust for the transferors of the property.

It is held on constructive trust for the members of X.

It is shared amongst the present members of X.

It is shared amongst the people who were members of X at the time the gift was made.

Property is held on an express trust for the present members of X, an unincorporated association. X is dissolved.
What happens to the property?

It is held on resulting trust for the transferors of the property.

It is held on constructive trust for the members of X.

The express trust will continue.

A new express trust will arise for the present members of X.

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