EQUITY AND TRUST II by nur hanisah

QUISTCLOSE TRUST

nurhanisahraup — 2024-02-04 07:35:44 UTC

nurhanisahraup — 2024-02-04 07:37:21 UTC

Do you agree that Quistclose also give rise to express trusts? Argue in reference to decided cases.

DEFINITION

nurhanisahraup — 2024-02-04 07:38:52 UTC

Trust made when a lender holds a security interest in the loan by including a clause to the contract of loan which states that the borrower can only use the money for the specified purposes.

In the event the trust is misused by the borrower, a trust will be imposed in the favor of the lender

DEFINITION OF EXPRESS TRUST

nurhanisahraup — 2024-02-04 07:43:59 UTC

The trust comes existence from the moment the settlor has declared it.

An express trust can be defined as a trust that is formed with the knowledge as well as the intention that such a trust exists.

RE KAYFORD LTD [1975] 1 AII ER 604

nurhanisahraup — 2024-02-04 07:46:41 UTC

The company organize a mail- order business and seek to open a special account to safeguard the customer money. However, a dormant deposit account was used.

The court held that a trust had been created. The elements for a valid trust exist and the company had already had a clear intention to create a trust.

BARCLAYS BANK LTD. APPELLANT AND QUISTCLOSE INVESTMENT LTD. REPSONDENTS.

nurhanisahraup — 2024-02-04 07:48:48 UTC

R going through financial difficulties with B and made agreement with Quistclose Investment for the purpose of to pay dividend.

R then went into liquidation before distributed the dividen.

R become trustee and Quistclose become the beneficiary and shall reclaim the fund.

APPLICATION

nurhanisahraup — 2024-02-04 07:53:10 UTC

There's distinction between Quistclose trust and express trust. Based on the Barclays case: Lord Wilberforce did not specified whether there were express or resulting trust and the beneficiary interest will be to the lender if the intended purpose have failed.

Re Kayford Ltd case: Arises from the express intention of the settlor (oral or written declaration) of, such intention.

CONCLUSION

nurhanisahraup — 2024-02-04 07:55:28 UTC

In conclusion, the Quistclose trust is regarded as resulting trust.

Where property is conveyed to persons in circumstances in which they are intended to take as trustee no beneficial interests is declared.
The trustee will hold the property on resulting trust for the grantor.
Quistclose trust varies depending on circumstances, and can be expressed or resulting.
Express trust is more formal than Quistclose trust.
Express trust has a few requirements in order to be fulfilled.
Quistclose is still ambiguous and informal. Thus, Quistclose does not give rise to express trust