Equity WS 9 - Unincorporated associations + Charitable trusts

?
  • Created by: Emma13
  • Created on: 22-06-18 12:56
What did Leahy establish?
Viscount Simmons expressed the firm opinion that a gift upon trust for the purpose of an unincorporated association would be invalid for want of beneficiaries.
1 of 14
What did Re Denley's establish?
Goff J - that a gift for non-charitable purpose would fall foul of the beneficiary principle if the purposes were directly or indirectly for the benefit of an individual or individuals.
2 of 14
When are gifts to unincorporated associations valid?
valid as gifts for the purposes of the association provided the association was free to dispose of it’s assets at any time.
3 of 14
What was the theory that Lord Simmons believe explain UA cases?
law treated a gift to an association as valid if the gift could be treated as to the present members rather than upon trust for the purposes of the society.
4 of 14
What was the opinion of the Privy Council regarding gifts to UAs?
a gift to an unincorporated association was to be treated prima facie as a gift to the individual members of that association at the time of the gift so that they could together dispose of it as they thought fit.
5 of 14
What is mutual contract theory?
Allows club/societies to own assets by deeming them to be vested in beneficially in all members, assets will be held on trust by a member(s) (Treasurer) in accordance with instruction from committee, prevents members withdrawing their share.
6 of 14
Why are members not able to withdraw their share under mutual contract theory?
prevents members from withdrawing their share of the assets from the society by treating the rule of the society as paramount, which members have mutually agreed by contract to observe.
7 of 14
What are the limits to Mutual contract theory ?
Explained in Neville Estates LTD + Re Recher’s Will Trusts can only apply as Cross J explained, where there is nothing in the terms of the gift or in the rules of the society that will prevent the distribution of the associations assets
8 of 14
What did Carne establish?
If under mutual contract theory there is a term/rule that prevents distribution of assets; If there is, then even under this analysis, any gift will fail under the rule against perpetual trusts
9 of 14
What did Re Grant establish?
Members do not have control of assets - Vinelott J held that the element of control by an outside body meant that the gift infringed the rule against perpetual trusts, since the Constituency Party was not at liberty to dissolve itself.
10 of 14
What did Re Andrews Lawn Tennis Club establish?
Assets held for mixed purposes - Arnold J held that the land could not be treated as belonging to the members of the club because the trust was for mixed purposes, nor could it be treated as a purely charitable trust as defeat primary purpose
11 of 14
What did Conservative Central Office establish?
The theory can only apply where there is an identifiable membership, who are capable (in theory) of being beneficial owners subject to the rules of membership.
12 of 14
When can mutual contract theory not apply under Re Denley?
The theory can’t apply if the terms of the gift exclude the possibility of the members of the association taking beneficially.
13 of 14
When can mutual contract theory not apply under RE Lipinski?
gift to an unincorporated association imposes in clear terms a trust to use that gift in a way which is neither directly nor indirectly for the benefit of the members, MCT would not apply
14 of 14

Other cards in this set

Card 2

Front

What did Re Denley's establish?

Back

Goff J - that a gift for non-charitable purpose would fall foul of the beneficiary principle if the purposes were directly or indirectly for the benefit of an individual or individuals.

Card 3

Front

When are gifts to unincorporated associations valid?

Back

Preview of the front of card 3

Card 4

Front

What was the theory that Lord Simmons believe explain UA cases?

Back

Preview of the front of card 4

Card 5

Front

What was the opinion of the Privy Council regarding gifts to UAs?

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Law resources:

See all Law resources »See all Equity resources »