Chapter 7 Multiple choice questions

. Which of the following best explains why trusts purely for private purposes are generally void?

Private purposes are too vague.

In order to bring the trust within the control of the court, there must always be someone in whose favour the court can decree performance.

Private purposes are capricious.

Private purposes continue in perpetuity.

. In Re Astor [1952] Ch 534 non-charitable trusts were declared of substantially all the issued shares of 'The Observer Limited' for purposes including the 'maintenance . . . of good understanding . . . between nations'' and 'the preservation of the independence and integrity of newspapers'. How could such trusts be enforced?

The Attorney General could enforce them.

The trustees might proceed ex parte to enforce the trusts against themselves.

The settlor could enforce them.

None of the options given are correct.

. In Morice v Bishop v Durham (1804) [1903-13] All ER Rep 451 there was a bequest, to the Bishop of Durham for 'such objects of benevolence and liberality as the Bishop of Durham in his own discretion shall most approve'. Into which of the following categories would it fall?

A trust for a private purpose.

A trust for a beneficiary.

A charitable trust.

A trust of imperfect obligation.

. Lord Kyllachy once opined that it 'ought to be unlawful, to dedicate by testamentary disposition, for all time, or for a length of time, the whole income of a large estate … to objects of no utility … and which have no other purpose or use than that of perpetuating at great cost, and in an absurd manner, the idiosyncracies of an eccentric testator'. What principle was his lordship's main concern?

That trusts of imperfect obligation ought not to be enforced where they are perpetual.

That trusts of imperfect obligation ought not to be enforced where they are uncertain.

That trusts of imperfect obligation ought not to be enforced where they are capricious.

That trusts of imperfect obligation ought not to be enforced where they are expensive.

. In Re Bowes [1896] 1 Ch 507, the testator made a bequest of £5,000 'upon trust to expend the same in planting trees for shelter on the Wemergill estate being part of my settled estates'. What was the outcome?

The trust was a valid charitable trust.

The trust was valid as a trust of imperfect obligation.

The trust was valid as a trust for the benefit of persons entitled to the estate.

The trust was a void trust for a purely private purpose.

. "A gift can be made to persons (including a corporation) but it cannot be made to a purpose or to an object; so, also, a trust may be created for the benefit of persons as cestuis que trustent, but not for a purpose or object unless the purpose or object be charitable. For a purpose or object cannot sue, but, if it be charitable, the Attorney-General can sue to enforce it." This is the classic statement of:

The "enforcement principle"

The 'beneficiary principle'

The principle of "certainty of objects"

All of the above

. Land was settled on trustees for use as a sports club 'primarily' for the benefit of the employees of a company, and 'secondarily' for the benefit of such other persons (if any) as the trustees may allow to use the same. Why will this trust fail?

It is not exclusively charitable

Uncertainty

It is a trust for a private purpose

Perpetuity

. Warwickshire FC is an amateur football team that plays an annual challenge match on Christmas Day. A local businessman who supported the team has recently died leaving a case of twelve bottles of champagne to "The Warwickshire FC to celebrate the next time they win the Christmas Day challenge match". How will this gift be construed?

An absolute gift to the members of the time being to be held according to the club's constitution.

A void trust for a purely private purpose.

A gift of one bottle each to the manager and the starting eleven.

A mandate enforceable against the officers of the club to apply the gift for the specified purpose.

. Which of the following is not a situation in which an unincorporated association should be regarded as having been dissolved or terminated so that its assets become distributable?

By agreement of all persons interested

A period of inactivity

By order of the court

When the association no longer has any effective purpose

. Which of the following is NOT a practical way to avoid the rule against trusts purely for private purposes?

make a gift to a charity determinable in the event of failure (not necessarily failure by the charity itself) to carry out your desired purposes

Provide that the trustees should have the option but not the obligation to pursue the stated purposes

make a gift to identifiable beneficiaries, but express a purpose by way of motive for making the gift or by way of giving advice to the trustees

make a gift to a company (incorporated entity)

Chapter 7 Multiple choice questions

Quiz Content