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Question 1

Which of the following could not be a resulting trust?

a) The settlor fails to supply the names of the beneficiaries

b) The trust fails to state to whom the property should go next

c) The trusts declared do not exhaust the trust fund

d) A and B agree to give property to C. B breaks the agreement

Question 2

In Air Jamaica v Joy Charlton [1999] 1 WLR 1399 the surplus in the pension fund belonged to:

a) The government of Jamaica under the doctrine of bona vacantia

b) The employers, Air Jamaica

c) The employees of Air Jamaica

d) Employees, ex-employees, pensioners and Air Jamaica

Question 3

Which of the following is not regarded as the underlying basis of resulting trusts?

a) The conscience of the property holder is affected

b) The trust gives effect to the common intention of the parties

c) The trust arises by operation of law

d) The trust returns property to the original owner

Question 4

If A gives property to B and receives no consideration in return:

a) It is a gift to B

b) B must return the property to A under a resulting trust

c) It is a gift to B as long as A is the mother of B

d) A and B share the property in equal shares

Question 5

In Tinsley v Milligan [1994] 1 AC 340 evidence of an illegal purpose:

a) Could not be admitted by the court

b) Did not displace the presumption of resulting trust

c) Was irrelevant to the claim to the house

d) No longer applied in equity

Question 6

What is legal personality?

a) A contract between members of a club

b) A trust for the members of a club

c) Corporate status

d) The capacity to own property and to be the subject of legal rights and duties

Question 7

In Leahy v AG for New South Wales [1959] AC 457 why could not an unincorporated association be a trust for its members?

a) Because it would infringe the perpetuity rule

b) Because each member could remove their share

c) Because a trust for a purpose is not permitted

d) Because it would be uncertain who all the beneficiaries were

Question 8

Why was it possible for an unincorporated association to be accepted as a trust in In re Denley's Trust Deed [1969] 1 Ch 373?

a) The trust was for the benefit of identifiable beneficiaries

b) The trust would end within 21 years of the death of certain named persons

c) The trust could be enforced

d) Leahy v A-G for New South Wales [1959] AC 457 was incorrectly decided

Question 9

According to the case law, the assets of a dissolved unincorporated association can be distributed in a number of ways. Which of the following distributions would not be possible?

a) The assets are divided equally on resulting trust

b) The assets go to the crown as bona vacantia (ownerless goods)

c) The assets are divided according to the contractual rights of the members

d) The assets are held for contributors, in proportion to their contribution, on resulting trust

Question 10

Why are purpose trusts not allowed?

a) Because they infringe the perpetuity rule

b) Because funds should not be devoted to socially undesirable purposes

c) Because there is no one to enforce them

d) Because purpose trusts are too vague

Oxford University Press, Online Resource Centre, Chapter 10.

Chapter 10

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