Constitution

Constitution

When a person transfers legal title to another person, legal title is said to vest in the other person. 

The general rule is that, unless the property has been transferred in the correct way, the transfer shall fail - it is said to be imperfect. 'Equity will not perfect an imperfect gift'. 

If the person to whom the transfer is intended has not given valuable consideration, that person is said to be a volunteer. A transferee who has given valuable consideration can have the contract specifically enforced. Failing to 'vest' title in the volunteer means that the volunteer has no enforceable legal rights. This is enforced in the maxim, 'equity will not assist a volunteer'. 

Equity is a gloss on the common law. 

Benefitting Another with Property

Milroy v Lord identified three ways in which an absolute owner of proeprty could benefit another with his or her property: 

1. An outright gift; 

2. A transfer of legal title to a third person to hold on trust for the benefit of another; or 

3. Declaring that the absolute owner now holds that property on trust for another. 

Land

A transfer of land or an interest in land is set out in section 52 of the Law of Property Act 1925. 

Transfer must be made by deed (section 1 of the Law of Property (Miscellaneous Provisions) Act 1989. 

Transfer is completed by registration at the Land Registry (section 27 Land Registration Act 2002). 

Richards v Delrige 

Chose in Action

This includes things such as cheques, debts, or rights under a contract. 

Compliance with section 136 of the Law of Property Act 1925. 

Jones v Lock (a cheque of £900 'for baby'). 

Chattels

This includes things such as paintings, jewellery, etc. 

By deed (Jaffa v Taylor Gallery); or 

Compliance with Re Cole: 

1. Delivery; 

2. Intention that ownership is transferred.

Glaister-Carlisle v Glaister-Carlisle 

The owner of a white poodle threw the dog at his wife and said 'she is your responsibility now'. The court held that the language was too vague to transfer the legal title, despite the delivery. 

The requirement of delivery can be actual or constructive. For example, the delivery of car keys can represent delivery of the car itself. It may also include informing the donee where he or she can find the chattel (Thomas v Times Book Co). 

Money

A valid transfer of money merely requires delivery. 

Transfer of an Equitable Interest

Section 53(1)(c) LPA 1925 - applies to any beneficial interest in property, not just land. 

Equitable Principles that Perfect a Transfer

Equity has established exceptions to the legal rules outlined earlier. The equitable princples can be appied to perfect title. 

Legal Title Vests in Another Capacity

If promised property vests in the potential transferee in another capacity, the courts have held that the transfer is perfected (Strong v Bird). 

Strong v Bird requires that: 

1. Clear intention to make an inter vivos gift to the transferee…