Hi I am struggling on a particular section of a problem question regarding the formalities attached to the disposition of an equitable interest and was hoping that someone may be able to help me out.
The scenario is:
An informal arrangement was made under which George paid Frances a substantial sum in cash; she then orally directed the trustees of the widow's trust to pay half the income of the funds settled on her for life to Edward; in return for this and a half share in George's interest in remainder under the widow's trust, Edward agreed to surrender his half share of the sons' trust. The intended effect was that Edward ceased to have an interest in the farm business, acquiring one half of Frances's life interest and a half share of the interest in remainder.
P.S. when i had the seminar on this topic i made these notes but I'm not sure i really understand it .
A: If we disregard that payment has been made by ‘G’ to ‘F’ then this is a clear situation of disposition as outlined in the case of *Grey v IRC. However because payment has been made we can say that a specifically enforceable contract may exist as in the case of *Oughtred v IRC. A specifically enforceable contract being one that only provides the equitable award of specific performance and not damages, due to the uniqueness of the subject matter. Examples being land or shares as in the case of *Oughtred v IRC. In the current scenario it is clear that a specifically enforceable contract exists
Formalities of a Trust watch
- Thread Starter
- 30-01-2015 14:16