Equity & Trusts Flashcards
7 cards from real SQE1 practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Equity & Trusts flashcards as text
Which type of resulting trust arises where a person contributes to the purchase price of property but legal title is conveyed into another's name?
Answer: Presumed resulting trust
A presumed resulting trust arises from circumstances giving rise to a presumption — such as a purchase price contribution — that the legal owner holds on trust for the contributor.
In Stack v Dowden [2007], the House of Lords held that where unmarried cohabitants hold the legal title to a family home jointly, the starting presumption is that:
Answer: Beneficial interests are presumed equal but this can be rebutted by the whole course of dealing between the parties
Stack v Dowden established a strong presumption of equal beneficial ownership for jointly-held property, but this presumption can be displaced by examining the whole course of dealing including non-financial factors.
How does English law characterise the constructive trust, in contrast to jurisdictions such as Canada?
Answer: As an institutional trust arising automatically by operation of law
English law treats the constructive trust as institutional — it arises automatically by operation of law on the occurrence of certain events — rather than as a discretionary remedy.
In Lloyds Bank plc v Rosset [1991], Lord Bridge identified two bases on which a common intention constructive trust can arise. Which answer correctly states both?
Answer: Express common intention plus detrimental reliance, or direct financial contributions to the purchase price implying common intention
Lord Bridge held that a common intention constructive trust arises either from an express common intention accompanied by detrimental reliance, or from direct financial contributions to the purchase price which imply a common intention.
A Quistclose trust (Barclays Bank Ltd v Quistclose Investments Ltd [1970]) arises in which of the following circumstances?
Answer: Money is lent for a specific purpose and that purpose fails, leaving it on resulting trust for the lender
A Quistclose trust arises where money is advanced for a specific purpose; if that purpose fails or cannot be carried out, the money is held on resulting trust for the lender rather than being available to general creditors.
Which three elements must be established to found a claim in proprietary estoppel, as confirmed in Thorner v Major [2009]?
Answer: Assurance, reliance, and detriment
Proprietary estoppel requires an assurance (representation about property rights), reliance on that assurance by the claimant, and detriment suffered by the claimant as a result of that reliance.
How does a half-secret trust differ from a fully secret trust?
Answer: In a half-secret trust, the will discloses the existence of the trust but not its terms; in a fully secret trust, the will appears to make an outright gift with no mention of a trust
A half-secret trust is one where the will reveals that the legatee takes as trustee but does not reveal the terms, whereas a fully secret trust appears on the face of the will as an absolute gift with the trust obligation communicated only outside the will.