The Three Certainties, Formalities And Constitution

Front 1

Milroy v Lord

Back 1

- Three methods of lifetime disposition:
1. Outright gift.
2. Transfer on trust.
3. Self declaration of trust.

'Equity will not perfect an imperfect gift'
'Equity will not assist a volunteer'
'Equity will not treat as a self-declaration where it was not intended'. (Richards v Delbridge; Jones v Lock).

Front 2

Types of Disposition

Back 2

1. Outright Gift.
Requirements: Intention to give, transfer of legal title to donee.

2. Transfer on trust.
Requirements: Transfer of legal title to trustees, Declaration of trust. (3 certainties + Formalities).

3. Self-declaration of trust.
Requirements: Transfer of legal title to yourself, declaration of trust (3 certainties + formalities).

Front 3

Re Rose

Back 3

Facts: All documents sent to company but legal title was not transferred. Or handed to donee (Mascall v Mascall).

Held: Gift held valid as:
1. He had not done everything that was necessary.
2. No further action was required. 'More to do?' (Re Fry).
3. The matter was put beyond his control.

Front 4

Pennington v Waine

Back 4

Held: It was 'unconscionable' to invalidate as there was:

1. An act of reliance.
2. Clear knowledge on part of the donee.
3. An assurance that it would go ahead.

Held: No definition of 'unconscionable' so necessary to compare the facts.

Front 5

Vandervell v IRC

Back 5

Facts: Legal title had been transferred but no beneficiaries had been specified. He is trying to dispose of legal and equitable title. Fail on formalities + 3 Certainties. Didn't use signed writing as required by s53(1)(c). This would normally be void.

Held: There was a resulting trust back to Vandervell which he had to pay tax on.

Front 6

Saunders v Vautier

Back 6

- Reinforces the Vandervell argument that the trust will succeed when equitable and legal title are trying to be passed. It is as if Vandervell collapsed the trust under his own name and made an outright gift to the beneficiaries. This would be acceptable.

Front 7

Grey v IRC

Back 7

Facts: Only looking to dispose of equitable title, then s53(1)(c) would certainly apply and the trust would be void.

Held: Oral instructions would render the trust void as s53(1)(c) has not been complied with.

Front 8

Re Cole

Back 8

- Requirements for disposition of an outright gift of a chattel;
- Intention to give, Delivery or a gift by deed.

Front 9

Strong v Bird

Back 9

- If you were also an executor of the will then the gift might succeed under the following conditions:

1. Donee gets legal title as personal representative.
2. Intention to make an immediate gift. (unlike Re Freeland - lent car to someone else).
3. This intention continues until death. (unlike Re Gonin - mother changed from house to cheque).

Front 10

Cain v Moon

Back 10

- A DMC if the gift is made:
1. Contemplating imminent death.
2. Conditional on death
3. Actual or constructive delivery. (Sen v Headley - handing over title deeds.)

Front 11

Richards v Delbridge

Back 11

- Gift of land needs to be with a seperate deed, not on existing conveyance.
- Won't treat as a self-declaration where this was not intended.