principles of equity and trustsprinciples of equity and trusts 1.3.14 equity will not permit a...

Principles ofEquity

andTrusts

Alastair Hudson, LLB, LLM, PhDBarrister and Senior Lecturer in Law

Queen Mary and Westfield College, University of London

CavendishPublishing

Limited

London • Sydney

CONTENTS

Preface vii

Glossary ix

TableofCases xxxiii

Table of Statutes xlix

PART IINTRODUCTORY

1 INTRODUCTION - THE NATURE OF EQUITY 3

1.1 THE BIRTH OF EQUTTY 4

1.1.1 The development of two Systems: common law and equity 41.1.2 The continning distinction between equity and common law 51.1.3 The impact of the distinction between common law

and equity 6

1.2 UNDERSTANDING EQUITY 8

1.2.1 Equity: an ethical construct 81.2.2 Equity acts in personam 91.2.3 Roots in trade and in the family 10

1.3 THE CORE EQUTTABLE PRINCIPLES 12

1.3.1 Equity will not suffer a wrong to be without a remedy 131.3.2 Equity follows the law 131.3.3 Where there is equal equity, the law shall prevail 131.3.4 Where the equities are equal, the first in time shall prevail 141.3.5 Delay defeats equities 141.3.6 He who seeks equity must do equity 141.3.7 He who comes to equity must come with clean hands 141.3.8 Equality is equity 141.3.9 Equity looks to the intent rather than to the form 151.3.10 Equity looks on that as done that which ought

to have been done 151.3.11 Equity imputes an intention to fulfil an Obligation 151.3.12 Equity acts in personam 161.3.13 Equity will not permit Statute or common law to be used

as an engine of fraud 16

Principles of Equity and Trusts

1.3.14 Equity will not permit a person who is trustee of propertyto take benefit from that property qua trustee 16

1.3.15 Equity abhors a vacuum 171.3.16 The trust 17

SUMMARY OF CHAFTER 1 19

2 UNDERSTANDING THE TRUST 21

2.1 THE BIRTH OF THE TRUST 21

2.2 EXPRESS TRUSTS-THE MAGIC TRIANGLE 22

2.2.1 What is a trust? 222.2.2 The settlor 222.2.3 The trustee 232.2.4 The beneficiary 252.2.5 Distinguishing between 'people' and 'legal capacities' 26

2.3 THE CLASSIFICATION OF TRUSTS 27

2.3.1 Express trusts 272.3.2 Resulting trusts 272.3.3 Constructive trusts 28

2.4 TRUSTS AND OTHER LEGAL CONSTRUCTS 29

2.4.1 Contract 292.4.2 Bailment 292.4.3 Agency 302.4.4 Gift 31

2.5 THE BENEFTTS OF TRUSTS 31

2.5.1 Owning property, but not owning property 312.5.2 Taxation 34

2.6 FUNDAMENTAL PRINCIPLES OF TRUSTS LAW 36

2.6.1 Understanding the core principles of the trust 362.6.2 The conscience of the trustee 372.6.3 Understanding the nature of property rights 37

XIV

Contents

2.6.4 The contractual nature of the trust 42

2.6.5 The broader nature of trust 44


PART II EXPRESS TRUSTS

3 THE CREATION OF EXPRESS TRUSTS 51

3.1 INTRODUCTORY 52

3.2 THE THREE CERTAINTIES 53

3.3

3.4

3.5

CERTAINTY OF INTENTION

3.3.1

3.3.2

3.3.3

3.3.4

What form of intention?

Moral obligations or trusts?

Intention to create a trust, not something eise

Analysing the possibilities

CERTAINTY OF SUBJECT MATTER

3.4.1

3.4.2

3.4.3

The application of the orthodox view

An exception for fungible or intangible property?

Floating charges

CERTAINTY OF OBJECTS

3.5.1

3.5.2

3.5.3

3.5.4

3.5.5

3.5.6

3.5.7

3.5.8

3.5.9

3.5.10

Introductory

Personal power

Mere power - fiduciary power

Discretionary trust power

Fixed trust power

Bare trust power

Resolving the uncertainty

The various forms of uncertainty

Ascertaining the beneficiaries' rights

Conclusion

53

53

55

56

57

57

58

60

62

62

62

63

64

66

68

69

69

70

73

74



4 TRUSTS FOR PEOPLE, PURPOSES ANDPERPETUITIES 11

4.1 THE BENEFICIARY PRINCIPLE 77

4.1.1 Introductory 78

4.1.2 Defining a 'people trust' 78

4.1.3 Mapping the distinction between 'people' and

'purpose' trusts 79

4.1.4 Perpetuities and accumulations 82

4.1.5 Purpose trust or mere motive? 84

4.1.6 Anomalous purpose trusts 85

4.2 UNINCORPORATEDASSOCIATIONS 86


4.2.2 What is an 'unincorporated association'? 86

4.2.3 Possible constructions of transfers to unincorporatedassociations 87

SUMMARY OFCHAPTER 4 95

5 FORMALITIES IN THE CREATION OFEXPRESS TRUSTS 97

5.1 SPECIFIC FORMALITIES IN THE CREATION OF A TRUST 98

5.1.1 Declaration of trust 98

5.2 EXCEPTIONS TO THE RULES OF FORMALITY 101

5.2.1 The Operation of implied, resulting and constructive trusts 101

5.2.2 Fraud and unconscionability 102

5.3 CONSTTTUTION OF THE TRUST FUND 104

5.3.1 Personalty 105

5.3.2 Land 105

5.4 IMPROPERLY CONSTTTUTED TRUSTS 105


5.4.2 Trusts and imperfect gifts 107

5.4.3 'Doing everything necessary', not an incompletelyconstituted trust 109

Contents

5.5 PERFEC1TNGIMPERFECT GIFTS 112

5.5.1 Donatio mortis causa 112

5.5.2 The rule in Strong v Bird 113

5.5.3 Proprietary estoppel and the enforcement of promises . 114

5.6 COVENANTS AND PROMISES TO CREATE A SETTLEMENT 115

5.6.1 Enforceability of promise 116

5.6.2 Trustees enforcing promise 117

5.7 DISPOSITION OF EQUITABLEINTERESTS 119

5.7.1 The rule in s53(l)(c)of the LPA1925 119

5.7.2 Whether or not a transaction will fall within s 53(l)(c) 120

5.7.3 Transactions not within s 53(l)(c) 121

5.7.4 Declaration of a new trust by trustees or third party with

dispositive powers 124

5.7.5 Are Grey and Vandervell the right way round? 127

5.7.6 Subtrusts 129

5.7.7 Declaration of new trust 129

5.7.8 Contractual transfer of equitable interest 130

5.7.9 Dispositions effected by implied trusts 131

5.7.10 Summary: analysing dispositions of equitable interests 132


6 SECRET TRUSTS 137

6.1 INTRODUCTORY 137

6.1.1 An example of a secret trust 137

6.1.2 Explaining the role of the secret trust 138

6.1.3 Mapping the discussion to follow 139

6.2 FULLY SECRET TRUSTS 139

6.2.1 Creating a valid, fully secret trust 139

6.2.2 Intention to benefit 140

6.2.3 Communication of the secret trust 140

6.3 GENERAL PRINCIPLES 141

6.3.1 The problem with secret trusts 141


6.3.2 Trustee dies before the settlor 1426.3.3 Disclaimer of the trust 1426.3.4 Where further property is added to a secret trust 1436.3.5 Secret trusts arising on intestacy 1436.3.6 Specific problems of evidence 143

6.4 PARTICULARISSUES WITH FULLY SECRET TRUSTS 145

6.4.1 Secret trustees with different knowledge 1456.4.2 Time of the creation of the trust 146

6.5 HALF SECRET TRUSTS 147

6.5.1 Creating a valid half secret trust 1476.5.2 Communication 1476.5.3 Acceptance 1486.5.4 Clash of doctrines - beneficiary attesting to the will 148

6.6 THE DOCTRINE OF INCORPORATION BY REFERENCE 148

6.7 CATEGORISING THE SECRET TRUST-EXPRESS ORCONSTRUCTTVE TRUST? 149

6.7.1 The traditional view 1496.7.2 The modern view 1496.7.3 The split view 1506.7.4 An alternative view 150

SUMMARY OF CHAPTER 6 153

PART III CHARITIES

7 THE LAW OF CHARITIES 157

7.1 INTRODUCTION 158

7.1.1 Context 1587.1.2 Categories of charitable trust 1587.1.3 Simplifying the approaches of the cases 1607.1.4 The trusts law advantages of charitable Status 1617.1.5 The tax advantages of charitable Status 163

Contents

7.2

7.3

7.4

7.5

7.6

7.7

7.1.5

7.1.6

Sufficient intention to create a charitable trust

A note before we proceed

RELIEF OF POVERTY

7.2.1

7.2.2

7.2.3

7.2.4

Introductory

What is 'poverty'?

What is 'relief'?

Limits on the class of beneficiary

EDUCATION

7.3.1

7.3.2

7.3.3

Introductory

What is 'education'

Public benefit requirement

TRUSTS FOR RELIGIOUS PURPOSES

7.4.1

7.4.2

7.4.3

Introductory

What is 'religion'?

The requirement of public benefit

OTHER PURPOSES BENEFICIAL TO THE COMMUNITY

7.5.1

7.5.2

7.5.3

7.5.4

7.5.5

Introductory

The nature of the fourth head

Requirement of public benefit

Political purposes

Recreational charities

CY-PRES DOCTRINE

7.6.1

7.6.2

Exclusivity of purpose

The mechanics of the cy-pres doctrine

SUMMARY OF CHAPTER 7

164

164

165

165

167

168

169

170

170

170

173

175

176

176

176

179

179

179

179

183

184

185

185

186

187

PART IV ADMINISTRATION OF TRUSTS

8 THE OFFICE OF TRUSTEE AND THECONDUCT OF TRUSTS 191



8.2 THE OFFICE OF TRUSTEE 192

8.2.1 Nature of the office of trustee 1928.2.2 Appointment of trustees 1938.2.3 Removal of trustee 196

8.3 POWERS OF MAINTENANCE AND ADVANCEMENT 197

8.3.1 Powers of maintenance 1978.3.2 Powers of advancement 200

8.4 THE CONDUCT OF TRUSTS 201

8.5 FIDUCIARY RESPONSIBILriTES OF TRUSTEES - I N OUTLINE 202

8.5.1 The nature of trusteeship 2028.5.2 The nature of fiduciary duties 2038.5.3 Conflicts of interest 2038.5.4 Duty of impartiality 206

8.6 DELEGATION OF TRUSTEES' DUTIES 207

8.6.1 Delegation of trustee's duties 2078.6.2 The devolution of powers or trusts 210

8.7 CONTROL OF TRUSTEES AND PROVISION OF INFORMATION 210

8.7.1 Control of the trustees 2108.7.2 The duty to give accounts and information 212


9 INVESTMENT OF TRUST FUNDS 217


9.1.1 General principles 2189.1.2 The trustee's duty of Investment 2209.1.3 Trustee's duty to manage Investments 2239.1.4 The Standard of the duty - 'current portfolio theory' 2259.1.5 Duty to control delegates 2269.1.6 Controlling trustee investment powers, breach of trust 227


XX

Contents

10 VARIATION OF TRUST FUNDS 231


10.1.1 Duty not to deviate from the terms of the trust 232

10.1.2 Variation of Trusts Act 1958 233

10.1.3 Other Statutes permitting deviation from terms of the trust 236

10.1.4 The effect of the principle in Saunders v Vautier 238

10.1.5 Termination of trusts 238


11 PENSION FUNDS 243


11.2 THE NATURE OF PENSION TRUSTS 244

11.2.1 Settlor 244

11.2.2 Trustees 245

11.2.3 Beneficiaries 246

11.3 THE INVESTMENT OF PENSION FUNDS 246

11.3.1 Powers of Investment 247

11.3.2 Powers of delegation 248

11.3.3 Investment principles 249

11.3.4 Choosing investments 250

11.3.5 Surplus 250

11.3.6 Winding up 250

11.3.7 Conclusion 251


XXI


PART V TRUSTS IMPLIED BY LAW

12 WESTDEUTSCHE LANDESBANK VISLINGTON -A NOTE 257

12.1 THE ROLE OF WESTDEUTSCHE IN TRUSTS IMPLIED BY LAW 257

12.1.1 The local authority swaps litigation 25812.1.2 The facts of Westdeutsche Landesbank 259

12.2 WHAT WESTDEUTSCHE LANDESBANK V ISLINGTONDECIDED 261

12.2.1 Introductory 26112.2.2 The decision at first instance 26112.2.3 The Court of Appeal 26212.2.4 The House of Lords (in outline) 263

12.3 DEBATING THE ROLE OF EQUITY 264

12.3.1 An historical basis in family trusts 26412.3.2 Isolating a variety of conceptual approaches 264

12.4 NECESSARILYTANGIBLE PROPERTY 265

12.5 THEAVAILABILrTYOFPROPRIETARYREMEDIES 266


13 RESULTING TRUSTS 271

13.1 INTRODUCTORY -WHAT IS ARESULTTNG TRUST? 271

13.1.1 Two views 27113.1.2 Resulting trusts in Westdeutsche Landesbank 27213.1.3 The division between 'automatic' and 'presumed'

resulting trust 27313.1.4 Common intention in resulting trusts 27513.1.5 Doubting the automatic/presumed categorisation 27613.1.6 Structure of this chapter 277

Contents

13.2 AUTOMATIC RESULTING TRUSTS 277

13.2.1 No declaration of trust, by mistake 277

13.2.2 Failure of trust 278

13.2.3 Surplus property after Performance of trust 278

13.2.4 Upon dissolution of unincorporated association 279

13.3 QUISTCLOSE TRUSTS 280

13.3.1 The dedsion in Barclays Bank v Quistclose 280

13.4 PRESUMED RESULTING TRUSTS 283

13.4.1 Voluntary gift 284

13.4.2 Contribution to purchase price 286

13.4.3 Presumption of advancement - Special relationships 286

13.4.4 Rebutting the presumption 288

13.4.5 Illegality and resulting trust 290

13.5 MISTAKE AND RESULTING TRUST 295

13.5.1 Restitution on grounds of mistake 295

13.5.2 Common intention and resulting trust in cases of mistake 296

13.6 UNDERSTANDING THE NATURE OF THE RESULTING TRUST 297

13.6.1 How resulting trusts arise 297

13.6.2 Problems with the resulting trust 298


14 CONSTRUCTIVE TRUSTS 305


14.1.1 The foundations of the proprietary constructive trust 306

14.1.2 The distinction between proprietary and personal Claims 309

14.1.3 Constructive trust institutional in nature 310

14.1.4 Fiduciary obligations under constructive trust 311

14.2 RULE AGAINST PROFITING FROM FIDUCIARY OFFICE 311

14.2.1 The birth of the principle 311

14.2.2 Modern application of the principle 312

14.2.3 What is the property at issue? 313


14.2.4 Disclosure 31414.2.5 To whom is the duty owed? 31514.2.6 The appropriate remedy 31514.2.7 Equitable accounting 316

14.3 BRIBES AND UNLAWFUL ACTS 317

14.3.1 Introductory 31714.3.2 Old authorities: when bribes did not lead to a

constructive trust 31814.3.3 The modern view: receipt of bribes leads to a

constructive trust 319

14.4 IMPOSING THE OFFICE OF CONSTRUCTIVE TRUSTEE 321

14.4.1 Introductory 32114.4.2 Knowing receipt 32314.4.3 Dishonest assistance 324

14.5 MISCELLANEOUS CONSTRUCTIVE TRUSTS 326

14.5.1 'Doing everything necessary': Re Rose 32714.5.2 Statute cannot be used as an engine of fraud:

Rochefoucauld v Boustead 32814.5.3 Secret trusts 32814.5.4 On conveyance of property 328

14.6 UNDERSTANDING CONSTRUCTIVE TRUSTS 329

14.6.1 Value judgments, consdence and identity of property 32914.6.2 The remedial nature, in truth, of many institurional

constructive trusts 330

14.6.3 US and Commonwealth comparisons 331


15 TRUSTS OF HOMES 337


15.2 EXPRESS TRUSTS OF HOMES 338

15.3 RESULTING TRUSTS - CONTRIBUTION TO PURCHASE PRICE 339

Contents

15.3.1 Setting the scene 34015.3.2 The central text 342

15.4 CONSTRUCTIVE TRUSTS - ACQUISITION OF EQUITABLEINTERESTS BY CONDUCT OR AGREEMENT 342

15.4.1 Foundations of the common intention constructive trusts 34315.4.2 Rosset - the new model common intention

constructive trust 34415.4.3 Application of the common intention constructive

trust concept 34815.4.4 The difficulties with the Rosset strict test 350

15.5 PROPRIETARY ESTOPPEL 351

15.5.1 The test underlying the doctrine of proprietary estoppel 35115.5.2 The nature of the interest awarded under

proprietary estoppel 35315.5.3 The extent and nature of the interest awarded under

proprietary estoppel 354

15.6 THE BALANCE SHEET APPROACH 356

15.6.1 Introductory 35615.6.2 Calculating the size of the equitable interest 35715.6.3 What can be taken into account? 358

15.7 THE FAMILY ASSETS APPROACH 363

15.7.1 Explaining the approach 36315.7.2 Where equality is equity 36315.7.3 Communal undertakings 365

15.8 THE COMMONWEALTH CASES 366

15.8.1 Canada and 'unjust enrichment' 36615.8.2 Australia and 'unconscionability' 36715.8.3 New Zealand - 'reasonable expectations' and 'fairness' 368

15.9 TRENDS IN THE ACADEMIC DISCUSSION OF TRUSTSOF HOMES 369

15.9.1 Framing the problem 36915.9.2 Conceptual issues with the common intention

constructive trust 370


15.9.3 A taxonomy of trusts of homes 37215.9.4 Conclusions - rethinking the law on trusts of homes 375

15.10TRUSTS OF LAND - THE LEGISLATIVE CONTEXT 376

15.10.1 Trusts of Land and Appointment of Trustees Act 1996 37715.10.2 Understanding the law's manifold treatment of the

family home 383


PART VI BREACH OF TRUSTAND EQUITABLE CLAIMS

16 LIABILITY FOR BREACH OF TRUSTS 389


16.2 BREACH OF TRUST 390

16.2.1 Traditional views of breach of trust 39016.2.2 Mapping out the modern test 39116.2.3 Loss as a foundation for the claim 39416.2.4 Exceptions to the causal link - power of sale in relation

to mortgages 39416.2.5 Defences to breach of trust 396

16.3 THE NATURE OF THE REMEDY 396

16.3.1 The remedy in outline 39616.3.2 A personal or a proprietary Obligation

to restore the fund? 39716.3.3 Compensation to restore the value of the trust fund 39816.3.4 The link between common law damages

and compensation 39916.3.5 Choice between remedies 40016.3.6 Valuation of the loss to the trust 40116.3.7 Some reservations about Target Holdings 40116.3.8 The action for breach of trust after termination

of the trust 402

Contents

16.4 PERSONAL LIABILITY TO ACCOUNT: 'STRANGERS TOTHE TRUST' 404

16.4.1 Understanding the genesis of each claim 405

16.4.2 Trustee de son tort 406

16.4.3 Knowing receipt 407

16.4.4 Dishonest assistance 410

16.5 COMPENSATION 416


16.5.2 Distinguishing between 'restorative' and'compensatory' remedies 416

16.5.3 The measurement of compensation 417

16.5.4 The nature of compensation as part of equity 419


17 TRACING 423

17.1 TRACING-UNDERSTANDING THE NATURE OF THE CLAIM 424


17.1.2 The distinction between common lawand equitable tracing 426

17.1.3 Tracing is a process - not a remedy 426

17.2 COMMON LAW TRACING 427


17.2.2 Understanding the limitations 428

17.2.3 Anewdirection 428

17.3 EQUITABLE TRACING 430


17.3.2 Need for prior equitable interest/proprietary base 431

17.3.3 Tracing through electronic bank accounts 432

17.3.4 Tracing payments made by mistake 434

17.4 EQUITABLE TRACING INTO MLXED FUNDS 435

17.4.1 Mixture of trust money with trustee's own money 435

17.4.2 Mixture of two trust funds or with innocentvolunteer's money 437


17.5 CLALMING: TRUSTS AND REMEDIES

17.5.1 A charge or a proportionate share?17.5.2 What is the nature of the constructive trust in equitable

tracing claims?17.5.3 Theft17.5.4 Loss of right to trace17.5.5 Swollen assets theory17.5.6 Operation of a resulting trust

17.6 DEFENCES

17.6.1 Change of position17.6.2 Passing on17.6.3 Bonafide purchaser for value without notice

17.7 CONCLUSIONS

17.7.1 An argument for conflation17.7.2 The effect of Westdeutsche Landesbank on asserting

proprietary rights

SUMMARY OF CHAPTER 17

440

440

441442443444445

446

446

447447

448

448

449

453

18 DOCTRINE OF NOTICE ANDUNDUEINFLUENCE 455

18.1 THE DOCTRINE OF NOTICE 455

18.2 UNDUE INFLUENCE 457

18.2.1 A species of constructive fraud 45818.2.2 Two classes of undue influence 458

18.3 MISREPRESENTATION AND EQUITABLE WRONGS 461

18.3.1 Misrepresentation in equity 46118.3.2 Equitable wrongs 462

18.4 SETTING MORTGAGES ASIDE - O'BRJEN AND ALL THAT 462

18.4.1 Context 46318.4.2 Barclays Bank v O'Brien 46418.4.3 Comparison with CIBC v Pitt 46618.4.4 Manifest disadvantage 467

Contents

18.4.5 The bürden of proof 469

18.4.6 Mortgagee's means of discharging this duty 470

18.4.7 The liability of the solicitor 471

18.4.8 Setting aside in part or in whole 472

18.5 ASURVEYOF THE'NEW'UNDUE INFLUENCE 475

18.5.1 The awkward tie in between undue influence and thedoctrine of notice 475

18.5.2 Existing proprietary rights or preventingunconscionable behaviour? 476

18.5.3 Misrepresentation: a reason for equitable intervention? 477

18.5.4 The balance between mortgagor and mortgagee 478

18.5.5 Conclusion: part of the law restrictingunconscionable behaviour 479


PART VII EQUITABLE REMEDIES

19 SPECIFIC PERFORMANCE 485

19.1 THE NATURE OF SPECIFIC PERFORMANCE 485


19.1.2 Spedfic Performance acts in personam 486

19.1.3 No requirement of breach 486

19.2 CONTRACTS WHERE SPECIFIC PERFORMANCEISAVAILABLE 486

19.2.1 Specific Performance in relation to land 487

19.2.2 Spedfic Performance in relation to chatteis 487

19.3 CONTRACTS WHERE SPECIFIC PERFORMANCE ISUNAVAILABLE 488

19.3.1 Illegal and immoral contracts 489

19.3.2 No consideration 489

19.3.3 Contracts involving personal skill 489

19.3.4 Specific Performance in money transactions 490


19.3.5 Contracts for insubstantial interests 49119.3.6 Contracts requiring supervision 49219.3.7 Contracts not mutually binding 493

19.4 DEFENCESTO AN ACTION FOR SPECMC PERFORMANCE 493

19.4.1 No enforceable contract 49319.4.2 Absence of writing 49319.4.3 Misrepresentation 49419.4.4 Undue influence and unconscionable bargains 49419.4.5 Mistake 49519.4.6 Lapse of time 49619.4.7 Damages in Heu of specific Performance 496


20 INJUNCTIONS 499

20.1 NATURE OF INJUNCTIONS 500

20.1.1 Distinguishing injunctions from common law remedies 50020.1.2 General equitable principles governing injunctions 502

20.2 CLASSIFICAnON OF INJUNCTIONS 504

20.2.1 Mandatory injunctions 50420.2.2 Prohibitory injunctions 50420.2.3 Injunctions quia timet 504

20.3 INTERLOCUTORY INJUNCTIONS 505

20.3.1 Introduction 50520.3.2 The core test - 'balance of convenience' 50620.3.3 Relationship with common law remedies 508

20.4 MAREVA INJUNCTIONS 508

20.4.1 Introductory 50820.4.2 The nature of the Mareva injunction 50920.4.3 The core test 50920.4.4 The worldwide Mareva injunction 510

Contents

20.5 ANTON PILLER ORDERS 511

20.5.1 Introduction 511

20.5.2 The requirements for grant of an Anton Piller order 512

20.6 THE INTERACTION WITH THE COMMON LAW 512

20.6.1 Damages in lieu of injunction 513

20.6.2 The measure of damages 513


21 RESCISSION AND RECTIFICATION 517


21.2 RESCISSION 518

21.2.1 The scope of equity 518

21.2.2 Misrepresentation 519

21.2.3 Undue influence and unconscionable bargains 520

21.2.4 Mistake 521

21.2.5 Loss of the right to rescind 524

21.3 RECTIFICATION 525

21.3.1 The nature of the remedy of rectification 526

21.3.2 Common mistake between parties 526

21.3.3 Unilateral mistake 526

21.3.4 Rectification of voluntary settlements 527

21.3.5 Delivery up and cancellation of documents 527

21.3.6 Neexeatregno 528


22 SUBROGATION 531


22.2 SIMPLE SUBROGATION 532

22.3 REVTvTNG SUBROGATION 533


22.3.2 Reviving extinguished rights 534


22.3.3 Subrogation and tracing. 53522.3.4 Assumption of risk 53622.3.5 Partpayments 53822.3.6 Does discharge of another's debt extinguish that debt? 54122.3.7 The potential Operation of Subrogation in financial

markets transactions 54122.3.8 Conclusions on the nature of Subrogation -

the availability of secured rights through Subrogation 542


PART VIII ENDNOTE -TRUSTS AND RESTITUTION

23 ENDNOTE - RETHINKING THE NATURE OFEQUITY AND THE TRUST 549

23.1 INTRODUCTORY

23.1.1 Equity's development23.1.2 Equity - in place of injusrice23.1.3 The role of the trust

23.2 SOMETHEMES

23.2.1 Proprietary rights cases23.2.2 In personam cases23.2.3 Restitution cases23.2.4 Bright line cases

23.3 EXPLORING THESE THEMES

23.3.1 The concretisation of equitable principles23.3.2 The crisis of equity in the 1990s23.3.3 Restitution of an unjust enrichment23.3.3 An example - resulting trusts and restitution23.3.4 Condusion

Further Reading

Index

549

549

551552

553

554

555556557

557

557

558559

561563

565573

XXXll

principles of equity and trustsprinciples of equity and trusts 1.3.14 equity will not permit a...

Documents