Chapter 8 Scenario Questions

Luna is Marion's mother. Luna makes a gift of shares to Marion.
What are the positions of both parties?

There is a presumption that Marion holds the shares on resulting trust for Luna.

There is a presumption of advancement, so Marion holds the shares outright.

There is a presumption that Marion holds the shares on resulting trust for Luna and it cannot be rebutted.

There is no trust as Luna did not have an express intention.

Queenie transfers shares to Regina to hold on trust for Sabrina in remainder for Tina. A year later, Sabrina dies. A few years after that, Tina dies.
What happens to the shares?

Following Sabrina's death, the trust has failed and so a resulting trust is recognized in favour of Queenie.

Following Tina's death, the trust has failed and so a resulting trust is recognized in favour of Queenie.

That the trust provides for a life interest with remainder to another person rebuts the presumption of an automatic resulting trust.

The shares form part of Tina's estate and Queenie has no beneficial interest.

Henrietta agrees to loan £1,000 to Company X for the purpose of purchasing equipment. In giving the money, she states that it is to be used for the purpose of purchasing the equipment and any other necessary items for Company X, as the directors see fit. She requires that the money is held in a different account to Company X's normal account. Company X goes into liquidation.
What claim does Henrietta have?

A personal claim for £1,000 that ranks alongside Company X's other unsecured creditors.

A personal claim for £1,000 that ranks above Company X's other unsecured creditors.

A proprietary claim against the £1,000—it is held on a Quistclose trust for Henrietta.

No claim.

Isla owes Jonathan £1,000. Isla pays Kurtis £1,000 by mistake. Kurtis spent the money on a holiday without realizing that he had been paid by mistake.
Under the current law, what is Isla's position?

Kurtis holds the £1,000 on resulting trust for Isla.

Isla has a personal claim of £1,000 against Kurtis.

Isla would have had a personal claim against Kurtis, but he changed his position in good faith.

Isla has a proprietary claim against Kurtis, but it does not derive from the recognition of a resulting trust.

Helen transfers money to Kaitlyn under a voidable contract. Helen applies to the court to seek an order rescinding the contract.
What is the effect of the rescission?

The money is held on constructive trust for Helen.

The money is held on presumed resulting trust for Helen.

The money is held on automatic resulting trust for Helen.

Helen has a personal claim for the value of the money.

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