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Question 1

In a trust, which of the following statements does not apply to trustees?

a) The trustees hold the legal estate

b) The trustees hold the equitable interest only

c) The trustees hold both the legal estate and the equitable interests

d) The trustees pay income to the beneficiaries

Question 2

Which of the following would a trust not be useful for?

a) To hold a pension fund

b) To provide for children

c) To allow the shared ownership of land

d) To form a company

Question 3

The decision in Don King v Warren 1998 2 All ER 630 was that:

a) Land can be held on trust

b) Chattels can be held on trust

c) The rights and benefits under a contract can be held on trust

d) A chose in action can be held on trust

Question 4

According to Lord Browne-Wilkinson's definition of a trust in Westdeutsche Landesbank Girozentrale v Islington London Borough Council [1996] AC 669, which of the following is an essential requirement of a trust?

a) The conscience of the legal owner must be affected

b) There must be identifiable trust property

c) There must be a declaration of trust

d) The trust is recognised by the law

Question 5

Which of the following is not a type of trust recognised by equity?

a) Secret trust

b) Discretionary trust

c) Express trust

d) An association of companies organised for defeating competition

Question 6

In which of the following situations will a resulting trust apply?

a) Two people purchase a house and both contribute to the purchase price

b) A tricks B into giving A money

c) A promises B that, if B leaves money in his will to A, A will give that money to C

d) A states that he will hold a sum of money for B

Question 7

For which type of property must a declaration of trust be proved by writing?

a) Shares

b) Contractual rights

c) Land

d) Milk quotas

Question 8

In Barclays Bank v Quistclose 1970 567 it was held that:

a) There was a only a contractual arrangement

b) There was a constructive trust

c) There was first an express trust, which failed, giving rise to a resulting trust

d) There was a resulting trust

Question 9

In Twinsectra v Yardley 2002 AC 164, it was held by Lord Millett that:

a) There was only a contractual arrangement

b) There was a constructive trust

c) There was first an express trust, which failed, giving rise to a resulting trust

d) There was a resulting trust, where the borrower held the property on trust for the lender

Question 10

Both personal representatives and trustees hold property on trust for beneficiaries. What is the difference between these two kinds of trust?

a) Personal representatives hold upon statutory trusts

b) When personal representatives hold the property, the beneficiaries do not have beneficial interests

c) The beneficiaries under a will have greater rights than the beneficiaries under an ordinary trust

d) Trustees cannot be sued, personal representatives can

Oxford University Press, Online Resource Centre, Chapter 03.

Chapter 03

Instructions