EQ T3

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1.1 2 Reasons for the General Invalidity of Non-Charitable Purpose Trusts
Re Astor ST [1952] - i. Need for Identifiable Beneficiaries ii.Certainty of Purpose
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1.2 Need for Identifiable Beneficiaries - Morice v Bishop of Durham [1804]
It is a fundamental principle of the law of trusts that the objects of the trust are people rather than purposes, because there need to be ascertained or ascertainable beneficiaries who are in a position to enforce the trust (Charity exception)
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1.3 Certainty of Purpose - Morice v Bishop of Durham [1804]
Re Astor - the NCPT was also held to be void bc the identified purposes were considered to be uncertain.in Morice a trust for “such objects of benevolence and liberality as the Bishop of Durham” should approve was void bc the objects were uncertain
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1.4 Certainty of Purpose - Capriciousness
Brown v Burdett - A Trust to block up all rooms of a house apart from 4 for a 20yo. McCaig (no2) statute of relatives at a uni. Bronze statues of testatrix (McCaig)
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1.5 Charitable Purposes
No beneficiary principle, exception to the general rule and CharTrusts are allowed - Re Endacott/Re Shaws WT/Charities Act 2011
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1.6 Critique of Invalidity Principle
If the purpose is defined clearly, the only obstacle to validity is the absence of ascertainable beneficiaries to enforce the trust. But, if the trustees are willing to perform the trust, there is no problem of enforceability (TP enforcer)
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1.7 Re Denley [1969] Exception General Rule
It trust that appears to be for non-charitable purposes might be valid if the purpose can be regarded as directly or indirectly benefiting ascertained individuals
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1.8 Re Denley Exception Explanation
TP benefit that they obtain from the purpose gives them a factual interest, so they have the locus standi to enforce the trust if necessary. (Sports ground in this case, which may be charitable purpose now)
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1.9 Re Denley Following Cases
Re Gillingham Bus Disaster Fund [1959] & Re the Trusts of the Abbott Fund [1900]
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1.10 Testamentary Trusts of Imperfect Obligation - exceptional cases in which non-charitable purpose trust created by Wills have been recognised as valid
TToIO must fall within one of the recognised categories of case in which such trusts have previously been treated as valid. Trust cannot have indefinite duration and must comply with the perpetuity rule (ComLaw: life in being + 21 years)
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1.11 Testamentary Trusts of Imperfect Obligation - Re Hooper [1932
If no person is identified, the trust should last for only 21 years (Re Hooper [1932]). If the trust might last longer than that period, it will be void from the outset.
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1.12 Testamentary Trusts of Imperfect Obligation - Re Dean [1889]
Trust for the welfare of animals will be a valid charitable trust, but a trust for the care of a single animal will not be charitable, because the public benefit requirement will not have been satisfied. BUT, may be a ToIO if complys with perp rule
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1.13 Testamentary Trusts of Imperfect Obligation - Pirbright v Salwey [1896]
Trusts for the erection or maintenance of tombs or monuments have long been regarded as valid, but they must still satisfy the perpetuity rule
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1.14 Testamentary Trusts of Imperfect Obligation - Re Endacott [1960]
Trusts for the saying of masses that the public are entitled to attend will be charitable. However, the Private masses as long as the perpetuity rule is not infringed may be ToIO
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1.15 Testamentary Trusts of Imperfect Obligation - Re Thompson (foxhunting) and Pettingall v Pettingall (horse upkeep)
Re Endacott said that these anomalous cases should not be extended. These two have since, so that rule is controversial so long as the appropriate undertaking is given, and so long as the trust satisfies the perpetuity rule and the purpose is clear
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1.16 Other Mechanisms for Transfer
Fiduciary Power for Non-Charitable Purposes/Power Attached to Gift/Mandate or Agency/Appointment of Enforcer (not allowed) See notes, page 4
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2.1 Unincorporated Associations - Nature of the Problem
As legally not a person. They have no legal personality and so cannot own property. Since unincorporated associations exist for purposes and because non-charitable purpose trust are generally not valid, the trust solution may not be available.
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2.2 Definition of Unincorporated Associations by Lawton LJ in Conservative and Unionist Central Office v Burrell:
"2+ persons bound for common purposes (not business), mutual undertakings with duties + obligations, in an org. with rules which identify it, and who controls it, and terms on which it can be joined/left. Bond of union must be contractual"(nonprofit)
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2.3 UA's Holding Property – Leahy [1959]
May be allowed if the trust can be considered for the direct or indirect benefit of the members of that association within the Denley principle.
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2.4 UA's Holding Property - Neville Estates v Madden [1962]
transferor may wish to benefit the members of the Association at the time the property is transferred. Held on Joint Tenancy. Legal title with treasurer. (For future members violates perp rule, but S7.2 allows to wait and see, see notes)
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2.5 UA's Holding Property - contractual holding theory
preferable construction to adopt is to treat the property as either being given absolutely or held on trust for the members at the time of the transfer, but subject to their contractual rights and liberties towards one another as members of the UA.
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2.6 UA's Holding Property - contractual holding theory - Hanchett-Stamford v Attorney-General [2008]
contractual rights will be derived from the Association’s rules or constitution, since all UAs must have rules that bind the members and which form the basis of an express or implied contract between them.
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2.7 UA's Holding Property - contractual holding theory - Re Horley Town Football Club [2006]
recognised by the courts, but it will not be available if the transfer of the property clearly intended the property to be held for the purposes of the association. Typically, treasurer holds legal title on bare trust in accordance with UA rules.
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2.8 UA's Holding Property - contractual holding theory - Re Lipinski WT [1976]
recognise up the contract holding theory can operate within the law trust.
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2.9 UA's Holding Property - contractual holding theory - Re Recher [1972]
Gift may be valid under CHT, if to present members sbct to contractual rights. Members cannot sever share on resignation, and gift includes future members.
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2.10 UA's Holding Property - contractual holding theory - Re Grants WT [1980]
UA members must be able to alter their rules by an appropriate majority, so as to provide that the funds or part of them can be applied for a new purpose or distributed amongst the members for their own benefit (otherwise violate Perp Rule)
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2.11 Dissolution of UA's - Hanchett-Stamford v Attorney-General [2008]
may occur by court order by resolution of the members according to the rules of the constitution, if there is no such provision by unanimous agreement of the members. If less than 2 members - dissolved
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2.12 Dissolution of UA's - RE GKN Bolts [1982]
The Association will also be regarded as dissolved if it can be considered to become moribund (Re GKN Bolts [1982]).
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2.13 Dissolution of UA's - Property Outcomes
1. resulting trust for the transference of the property 2. Bona Vacantia 3. Contractual Entitlement (from Constitution) See Notes.
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Other cards in this set

Card 2

Front

1.2 Need for Identifiable Beneficiaries - Morice v Bishop of Durham [1804]

Back

It is a fundamental principle of the law of trusts that the objects of the trust are people rather than purposes, because there need to be ascertained or ascertainable beneficiaries who are in a position to enforce the trust (Charity exception)

Card 3

Front

1.3 Certainty of Purpose - Morice v Bishop of Durham [1804]

Back

Preview of the front of card 3

Card 4

Front

1.4 Certainty of Purpose - Capriciousness

Back

Preview of the front of card 4

Card 5

Front

1.5 Charitable Purposes

Back

Preview of the front of card 5
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