Describe, apply and analyse principles of Equity and trusts;

This piece of coursework will be assessed by reference to the following criteria:
1. Describe, apply and analyse principles of Equity and trusts;
2. Draw with confidence on case law and statutory provisions;
3. Demonstrate the ability to identify and address key legal issues through the application of appropriate problem solving skills;
4. Demonstrate an understanding of the specific nature of legal reasoning within the field of Equity and deploy this in providing advice;
5. Explain and apply the principles governing the courts’ approach to equitable remedies;
6. Demonstrate and apply an understanding of how the courts ascertain when an express private trust has come into existence;
7. Explain and apply the principles determining the complete and incomplete constitution of gifts and trusts, using appropriate equitable maxims.

This coursework assessment is designed to allow students to show how the following learning outcomes have been achieved:


1. Describe and Analyse the principles and remedies of Equity and trusts

Thinking skills:

2. Examine in detail and explain judicial decisions in the field of Equity and trusts, set as specific case studies

Subject-based practical skills:

3. Apply equitable rules, principles and remedies in a creative manner to solve problems
4. Formulate well-reasoned and practice advice to ‘client problems’.

Instructions to Students:

PLEASE NOTE: Assessments MUST be properly referenced and MUST include a bibliography. Adequacy of referencing will form part of the marking criteria.

Candidates should answer ALL three questions. Each question carries equal marks.

• In June 2015, Butlers, a large Liverpool based business, hired a cargo ship – The Rodney – to Conways, a London based firm of oil shippers, for a period of twelve months. Payment for The Rodney was to be on a monthly basis. Payment for the hire of the ship for the first five months is now considerably overdue and Butlers have commenced legal proceedings against Conways for their non-payment of the debt. However, Butlers has recently heard that Conways is facing serious financial difficulties, due to fluctuations in the price of oil. Conways had a serious drop in its profits for the last financial year. Butlers fear that Conways may dissipate all the assets remaining in its bank accounts in London and Manchester before satisfying Butlers’ future court judgment. Butlers have been informed that A.PB Oil Ltd has paid a large sum of money directly into Conways’ bank account in London as an advance payment for its latest shipment of oil.

Advise Butlers on any action it may take to prevent Conways from frustrating execution of the court judgment which Butlers is likely to obtain.

• Haroon, a wealthy businessman, used to be a very keen backgammon player. He retired last year and handed over his business interests to his children. Upon retirement he purported to make the following ‘trust’:

‘I hereby transfer to Ravi and Satchin, the senior members of the Wanstead Backgammon Club, £250,000, to be held on trust for the purpose of making such grants as they shall in their absolute discretion see fit to deserving members and ex-members of the Club’.

Haroon has recently lost all interest in Backgammon. He regrets his attempt to create a ‘trust’ and seeks your advice as to whether the disposition is valid. If possible Haroon wishes to reclaim the £250,000 from which Ravi and Satchin have not yet made any grants.

Haroon also wishes to loan £200,000 to his daughter Nila. She wants the loan in order to buy manufacturing equipment to expand her business, which produces a range of pickles. Haroon is concerned that Nila is expanding the business too quickly and could risk becoming insolvent. He wishes to ensure that the loan is only used for the purchase of manufacturing equipment and that any money not used for this purpose is returned to him in the event that Nila’s pickle business goes into liquidation.

Advise Haroon.

• Bruno, aged 80, was informed recently by his doctors that he has serious heart disease and at considerable risk of a fatal heart attack.
Shortly after, his adopted daughter, Maria, visited him from her home in France at his house by the sea near Brighton. Bruno said to Maria, “I am unlikely to see you again. Upon my death, I want you to have my house and car”. He gave Maria the key to what he described as “my box of deeds” saying that “you will find everything you need in the box when I die”.

Last week, Bruno went swimming in the sea by himself early one morning. He disappeared and his dead body was washed up later on a beach. Maria has opened the “box of deeds”, where she discovered the deeds to her father’s house, title to which was not yet registered, as well as the keys to his valuable Mercedes car, together with a vehicle registration document.

Advise Maria. It seems that her father left no will, but he has another daughter, Amber, who has told Maria that she does not believe that Bruno wanted Maria to enjoy sole rights in the house and the car.

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