Chapter 3 Multiple choice questions

. Which of the following transactions is effective and enforceable without formality?

Declaration of trust of a legal interest in land.

Transaction giving rise to a constructive trust.

Disposition of an interest under an existing trust.

Declaration of trust of a subsisting equitable interest in land.

. Which of the following formal requirements is applicable to a declaration of trust respecting any land or any interest therein?

A declaration of trust respecting any land or any interest therein must be manifested and proved by some writing signed by some person who is able to declare such trust or by his will.

A declaration of trust respecting any land or any interest therein must be made in writing signed by some person who is able to declare such trust or by his will.

A declaration of trust respecting any land or any interest therein must be manifested and proved by deed signed by some person who is able to declare such trust or by his will.

A declaration of trust respecting any land or any interest therein must be made by deed signed by some person who is able to declare such trust or by his will.

. Grey v Inland Revenue Commissioners [1960] AC 1, House of Lords concerned the following facts: between 1949 and 1950 H set up six settlement trusts in favour of his grandchildren. On 1 February 1955 H transferred 18,000 £1 shares to the trustees. On 18 February H orally and irrevocably directed that the shares should be held on the trusts of the six settlements, 3,000 shares to each settlement. On 25 March the trustees made written declarations of trust in accordance with H's directions. Which transaction was held to have transferred H's equitable interest in the shares?

The trustees' written declarations of trust in accordance with H's directions.

Transfer of 18,000 £1 shares to the trustees.

The oral direction that the shares should be held on the trusts of the six settlements.

None of the options given are correct.

. Which of the following transactions involving a bare trust is effective without formality?

A declaration by a beneficiary that they will henceforth hold their equitable interest on trust for another person.

A disposition by a beneficiary of their equitable interest in favour of another person by directing their trustee henceforth to hold the legal estate for that other person.

A disposition by a beneficiary of their equitable interest in favour of another person by directing their trustee to transfer the legal estate to that other person.

None of the options given are correct.

. What of the following is an essential feature of mutual wills?

They are made between two people, married or unmarried.

Both wills must dispose of identical assets when each of the testator's dies.

They are intended to be irrevocable upon the death of the first testator to die.

They cannot be revoked once they have been made.

. Which of the following does not accurately describe a fully secret trust?

A trust where Y is informally made aware by X during X's lifetime that Y is to hold property received "on trust" under X's will as trustee for the benefit of Z.

A trust where Y is informally made aware by X during X's lifetime that Y is to hold property received under X's will as trustee for the benefit of Z.

A trust binding on property passed under a will, but which does not comply with the formalities required the Wills Act.

A trust binding the conscience of the person to whom the property passes under the will, that person having accepted the trust when the testator was still alive.

. In Ottaway v Norman [1972] Ch 6 98 the testator, by his will, left his bungalow to his housekeeper together with a legacy of £1,500 and half the residue of his estate. On her death the housekeeper left her property to strangers. Ottaway sued the housekeeper's executor, Norman, alleging that the housekeeper had orally agreed with the testator that she would leave various assets to Ottaway in her will. Brightman J held that the testator had created a valid secret trust and that Norman therefore held the bungalow under a constructive trust for the benefit of Ottaway. Which of the following factors did not influence that decision?

The informal agreement between housekeeper and testator had come after the execution of testator's will.

The testator intended to subject the housekeeper to and obligation in favour of Ottaway.

The testator had communicated his intentions to the housekeeper.

The housekeeper had accepted the obligation either expressly or by acquiescence.

. A testator left a legacy of £12,000 to five persons by a codicil to his will, and directed them to apply the income 'for the purposes indicated by me to them', with power to apply two-thirds of the capital 'to such person or persons indicated by me to them'. The beneficiaries of the trusts (a mistress and her illegitimate son) were communicated orally by the testator to the intended trustees, with detailed instructions being given to one of the intended trustees. The intended trustees accepted the trusts before the execution of the codicil. The testator's widow challenged the validity of arrangement. What is being described here?

Valid half-secret trust

Valid Full-secret trust

Invalid half-secret trust

Invalid Full-secret trust

. Which of the following is not a statutory requirement for a valid will?

The will is signed and sealed.

The will is in writing, and signed by the testator, or by some other person in his presence and by his direction.

The testator's signature is attested by two or more witnesses.

The will is signed by two or more witnesses.

. Which one of the following statements is true?

The intention to create a mutual will is contractual but the person who seeks to enforce a mutual will claims under a trust; they are not seeking specific performance of a contract.

The intention to create a mutual will is contractual and the person who seeks to enforce a mutual will claims under a contract.

The intention to create a mutual will is not contractual, but equitable, so the person who seeks to enforce a mutual will does not claim under a contract.

The intention to create a mutual will is not contractual, but equitable, but the person who enforces a mutual will does so under a contract.

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