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1. Which of the following propositions is always true?

A trustee is never the absolute owner of trust property. correct incorrect

The trustee holds legal title to the trust asset. correct incorrect

The trustee must discharge the purposes for which trust property is held. correct incorrect

The trustee is not a beneficiary of his own trust. correct incorrect

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2. Which of the following circumstances is likely to defeat an in personam claim?

The defendant's death. correct incorrect

The defendant's personal insolvency. correct incorrect

The claimant has suffered no personal injury. correct incorrect

The defendant is a company. correct incorrect

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3. Which of the following statements best summarises the ratio descidendi of the decision of the House of Lords in Barclays Bank Ltd v Quistclose Investments Ltd [1970] AC 567?

Trust and debt can co-exist in the same transaction in certain commercial contexts. correct incorrect

Failing companies need to be rescued. correct incorrect

A trust can be implied to remedy a failed contract. correct incorrect

Equity will mend a bad bargain. correct incorrect

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4. Money is given to John to give to such of his nieces and nephews as he thinks fit, and if he makes no appointment the money is to pass to his sisters in equal shares. This arrangement is:

A resulting trust correct incorrect

A fixed trust correct incorrect

A discretionary trust correct incorrect

A power of appointment correct incorrect

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5. 'In the present case the intention to create a secondary trust for the benefit of the lender, to arise if the primary trust, to pay the dividend, could not be carried out, is clear and I can find no reason why the law should not give effect to it.'
What case is this quotation taken from?

Barclays Bank v Quistclose Investments Ltd [1970] AC 567 correct incorrect

Pilcher v Rawlins (1872) 7 Ch App. 259 correct incorrect

Beswick v Beswick [1968] AC 58 correct incorrect

Re Duke of Norfolk's ST [1982] Ch. 61 correct incorrect

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6. Which of the following statements is false?

A settlor can create a trust to protect his own assets from his creditors. correct incorrect

A settlor can create a trust to protect his spendthrift child's assets from the child's creditors. correct incorrect

A settlor can set up a trust to protect his creditors from his insolvency. correct incorrect

A settlor can create a trust of a debt. correct incorrect

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7. "If we were asked what is the greatest and most distinctive achievement performed by Englishmen in the field of jurisprudence I cannot think that we should have any better answer to give than this, namely the development from century to century of the trust idea".
Who said this?

Professor Maitland correct incorrect

Professor Megarry correct incorrect

Lord Denning correct incorrect

Professor Ashburner correct incorrect

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8. "For the purposes of this Convention the term 'trust' refers to the legal relationship created - inter vivos or on death - by a person, the settlor, when assets have been placed under the control of a trustee for the benefit of a beneficiary or for a specified______." (The Hague Convention on the Law Applicable to Trusts and on their Recognition, Article 2) What is the missing word?

Purpose correct incorrect

Charity correct incorrect

State correct incorrect

Corporation correct incorrect

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9. In HMRC v Annabel's (Berkeley Square) Ltd (2008) ICR 1076, a "troncmaster" used a dedicated bank account to hold tips paid to staff at an exclusive London nightclub. What was the decision in this case?

The troncmaster was held to be a trustee of the tips. correct incorrect

The troncmaster was held to hold the tips as a "stakeholder". correct incorrect

The tips were ownerless property (bona vacantia) belonging to the Crown. correct incorrect

The tips were owned by the nightclub company. correct incorrect

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10. Which of the following statements is correct?

If a director takes personal advantage of a business opportunity "belonging" to the company, the director is accountable as if he were a trustee. See Foster Bryant Surveying Ltd v Bryant [2007] EWCA Civ 200. correct incorrect

If a director takes personal advantage of a business opportunity "belonging" to the company, the director is personally accountable under the common law of agency. correct incorrect

If a director takes personal advantage of a business opportunity "belonging" to the company, any benefits are automatically deducted from the director's remuneration. correct incorrect

If a director takes personal advantage of a business opportunity "belonging" to the company, the director can keep the benefits if it can be shown that the company is very unlikely to have taken advantage of the opportunity. correct incorrect