TLB 3 by

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

izzahsalim01 — 2023-10-23 14:20:12 UTC

BARCLAYS BANK LTD. APPELLANTS AND QUISTCLOSE INVESTMENTS LTD. RESPONDENTS

2023-10-23 23:06:49 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

izzahsalim01 — 2023-10-24 01:27:54 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 — 2023-10-24 02:46:27 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.

Re Kayford Ltd [1975] 1 AII ER 604

2023-10-24 04:52:21 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.

DEFINITION OF EXPRESS TRUST

2023-10-24 04:53:35 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.}

DEFINITION OF QUISTCLOSE TRUST

2023-10-24 05:04:38 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.