Equity and Trusts: Development, Maxims, and Scenario Analysis

This essay provides a comprehensive overview of Equity and Trusts, beginning with a historical analysis of its development, including key events and the relationship between law and equity. It explores the meaning and application of equitable maxims, offering a detailed examination of constructive trusts and their features. The essay also analyzes scenarios related to trusts, advising on the distribution of assets based on legal principles. Furthermore, it differentiates between trusts and gifts, clarifying the three certainties required for a valid trust. The essay covers various types of trusts, including living, testamentary, revocable, and irrevocable trusts, and discusses the need for a human beneficiary in private express trusts, providing a thorough understanding of trust law and its practical applications.

ESSAY

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
TASK 2............................................................................................................................................6
TASK 3 ...........................................................................................................................................9
TASK 4 .........................................................................................................................................12
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
The United Kingdom has a common legal system, the trustee will be responsible for
taking charge of the property, within the involvements of the obligations of the legal front, the
clauses which are incorporated in the clauses of the deed, will generally play the role of the
administer in the property and the individual which will be getting the advantages out of the
property, will be called as the beneficiary, and the name will be presented in the trust deed
including the tight knitted relationship of trust with an individual or an organization, the creation
of trust will be determined by a legal documentation, which will be known as the Trust Deed,
hold of the property or any other assets will be given to the trustee (Virgo,2018). The regulations
of the trust of the aforementioned government stated under the directives. This essay will
describe the findings of the trust and equity, the developments in the scope of trust and equity,
the historical side, the relationship of equity and law, the feature of constructive trusts and the
solutions to the scenarios which are thoroughly based on the trust equity law (Hudson,2021).
TASK 1
It all starts from the responsive of the state and the parliaments, the statues of the parliaments
were passed in regard to equity in the year of 1535, where the stages of developments in the
regulation were started, most likely like other legal structures, the law of equity was infused on a
very early stage into the law of the England, the measurements which are taken by the
Parliament to get a head start to the law of equity, is bringing about the feature of rigidity in the
legal system, in the earlier days the parameters for the equity law was hanging against the statues
of common law system. Originally, the regulations of the equity law were created and working
on the pursuit of conscience and postulates of justice, the regulations were applied on the stage
of the case by case footing.
Equity in the start was established in the courts of chancery, that ought to took the edge of the
stages of the common law, but in the area of the court of conscience, is not encircled by the
meticulous of the common law (Katz, 2020).

Law of equity is considered to be entirely a separate strand from the common law, the doctrine,
the prerequisite remedies, the regulations all are comprehended as significantly distinctive from
the regulations of the common-law. The differences which are laid down in the scope of common
law and the law of equity, can be determined by the passing of the judgments, the standards of
the cases, the type of litigation procedure followed and the standard of decision making on the
course of the subject matters. The long gone down trail, of the English legal system, has many
historical virtues, as taking in view of the common law and the law of equity, are the sectors
which are relatable on the front of the English judicial structure (Baxter,and Haslam,2018.). The
meaning of the common law will solely depend on the meaning of the case laws, which are the
decision taken by the jury, and later are used as the precedents, the scope of case law is
dependable on the common law of the country, whereas, the law of equity is contrary to the
common law, as it works on the orientation to judgments that will understand the objective of
fairness in the justice system, and be the division of the manifestation fragment of the natural
law. The flexibility was concerned with the law of equity and overruled the common law, in the
relationship defined between the common law and the equity, there is most certain need of it, the
extremity of the equity is taken in the scope as a parameter of the relationship, there are a lot
more difference in the both the laws, when it comes to the remedies, the judges of the court of
law , looks at the precedent to maintain the decision (Moore,2020).
The legal maxims of the equity are those which serves the set of general principles or the rules
which are govern by the way in which equity operates. These are developed by the English court
of Chancery and the other courts which have the jurisdiction of the equity it also includes the law
of trust (Raphael,2020). These maxis of equity are prepared with the help of law only. There are
twelve such maxims of equity which are mentioned below;
Equity will not suffer a wrong to be without a remedy- it means, where there is a right there
is a remedy, it’s a Latin maxim ubijus ibi remedium. It means that if the wrong was done then for
that wrong there should be some remedy in the court.
Equity follows the law- this maxim is prescribed the discipline, which is observed by the
Chancery Courts at the time of administering the justice in the light of conscience.

Who Seeks Equity Must Do equity- it mean, to obtain the equitable relief the plaintiff should
prepared to do Equity.
Who Comes into Equity Must come with The Clean Hands- equity is based on the good faith
and conscience, it demands the fair, right and good faith not only from the defendant but also
from the plaintiff. In the case of D&C Builders v Rees (1966), it represents this maxim the
individual who is acting as claimant must know the behaviour of the case first, in this this case
one small company where the parties were one couple and the builder, this couple in this case
used the doctrine of estoppel.
Delay Defeat equities- it means, if the injured party got delay in demanding the remedy for a
wrong, the court will deny to give the remedy on the grounds of public policy.
Equality is Equity- this maxim describes the object of law and the equity in order to accomplish
the distribution of property and its losses. Equality in this maxim means proportionate equality.
Equity Looks On That as Done Which Ought To Be Done- when the one party has some
obligations to do something for the other, the equity court look that obligation as it got done or
actually performed.
Equity Imputes an Intention to Fulfil an obligation- Equity court believes that the person is
prepared to do what is right and fair.
Where There Is Equal Equity, The Law shall Prevail- this maxim is related to the questions
of priority.
Equity Acts In Personam- the court of equity is described as the court of conscience.
Where The Equities Are Equal, The First In Time Shall Prevail- this maxim is also related
to the question of priority.
Equity Looks To The Intent Rather Than The Form- it means the intention of parties will be
look not the words (Abdullah, 2019).
The abstraction of trust which comes to light by the functioning of the law, yet again by the
meaning of their definitions of trust, one individual will hold the assets, when the other
individual will gain the advantages interest from the assets (Mochkabadi, and Volkmann,2020).
The meaning of the constructive trust, is determined as the remedy of the equitable trust which
will be implicated by the court of law to the party which will; hold the benefits of the assets, and

has been maliciously deprived of its own rights by some other individual, there are few crucial
components of the constructive trust, , the components of the constructive trust are mentioned in
the case of, Bergmann v Slater, which are, (a) A promise which is done between the parties, (b)
There must be arising of the transfer of the property and dependency as well, (c) Occurrence of
an relationship which is restrictive or classifies in nature (d) there is prejudiced enhancement.
Propounding the constructive trust, which states that when an individual will take a hold of the
funds in a wrongful manner, take a hold of the assets, when two individuals adjoined to have a
similarity in their intention to share the benefits of an assets interests.
The objective of the common interests, is stated in the case of, Stack v Dowden (2007) and
the case of D&C Builders v Rees (1966).
TASK 2
On January 2019, James found out that he was terminally ill and then decided to distribute his
wealth to his near and dear ones. He decided to distribute different things among his brother,
nephew, niece and daughter (Virgo, 2018). After his death in march 2019, things were
distributed to different people which created a conflict among the parties.
a) Advise who is entitled to:
Neptune Limited Shares – James brother, Martin was entitled to acquire shares that he held in
Neptune Limited so that he can start his own business from the wealth acquired from him
(Adloff, 2020). Martin therefore resigned from his business in order to set up a new business
from the income generated through James.
The Jewellery – James niece, Helen was entitled to receive the jewellery of his late wife for
which Helen did not got in touch with him. Although during the execution of will, the jewellery
was given to Alisa, his new partner.
The cottage in Scotland - James daughter, Melanie was entitled to acquire the cottage on
attaining the age of 21 through his sister Gail. Gail was held as a trustee for James daughter till
she was eligible to acquire the property. But during the execution of will, the cottage was
transferred to Alisa, his new partner.
b) Explain the three certainties and the difference between a trust and a gift in relation to
the medals.

The three certainties between a trust and gift are certainty of intention, subject matter and
object. There can be no valid element without these certainties for management and
implementation of properties of trust.
In Trust there is direct control of the trustee in order to manage the property whereas, In Gift
there is no direct control over the person who receives the gift and no management of property is
required.
The property in trust is used for the benefit of common public whereas, the person who receives
gift is solely owner of gift without any control of other person.
There are more limitations with a formal legal procedure followed for benefit of property of
trust whereas, there are less limitations in relation to transfer of any property.
Basically, a trust is an arrangement for management of property which is legalised in a manner
so that assets or properties can be easily and smoothly managed (Beckett, 2019). There are four
types of trust which are as mentioned below:
Living – It is the trust which is made or created during lifetime of a person. It is the secure way
of dealing with the properties in a legal manner. It also benefits in providing a tax free method
for dealing with properties.
Testamentary – It allows a person to securely transfer a property to the family without any
hindrances. There is no real owner in a trust as there is no legal authorisation of the acquired
assets.
Revocable – This trust is generated when the person who grants the trust is still living. The
conditions are such that the terms and condition of the trust can be changed at any time, during
the lifetime of trust (Chien, 2022). A revocable trust is required to authorise its legality in
relation of assets after the death of owner.
Irrevocable – Once a trust is made or came into effect, then its terms and conditions cannot be
changed. It is mainly created for the transfer of assets which are out of estate tax for the benefit
of trust maker.
The need for a human beneficiary in private express trust is to transfer the rights, guarantees for
the benefit of members of family. The beneficiaries are responsible for managing the assets for
private express trust who are family members including their friends and relatives.
c) Explain the effects of the legacy to the Bentown Bird Watching Club

The transfer of estate to son 'Harry' and daughter 'Melanie' with half of it given to both the
children equally. Melanie may acquire the estate at the age of 18, with Harry being the trustee of
property. The effects of legacy to Bentown Bird Watching Club is that the estate or property is
transferred through ancestors since a long time (Dosse, 2018) This transfer imposes the
impression of maintaining and following the cultural norms which are running since ancient
times.
d) Explain whether there are any circumstances in which Melanie could receive monies
from her trust before attaining the age of 18 and the impact this would have on the trust
funds.
The circumstances under which Melanie can receive money from trust before being 18
years of age is when the tax is paid on the income of individual.
The two exceptions to the beneficiary principle are in relation to particular animals which
was analysed in the case of Re Dean (1889) 41 Ch. D 552. When there is creation of trust
in relation to maintaining a tomb or monument as analysed in the case of Re
Hopper(1932) 1 Ch 38.
e) Analyses Harry's duties and responsibilities as a trustee and the potential defenses for
breach of this duty.
The duties and responsibilities of a trustee in relation to Harry being trustee of the
property is the ownership of assets in a legal manner with the responsibility of managing it. A
trustee has full control over the property and is liable for using it for the purpose for which it has
been given or served (Liew, 2022). There must be complete loyalty and honesty towards the trust
without being bias which would reflect a good example for authorisation of property. A trustee
must also take reasonable care towards the property. The property must be administered with
good faith for beneficiaries of the trust. There must be full, direct and active involvement of the
trustee in matter of trust in order to maintain integrity towards the property.
Potential defences for breach of the duty is that the contract was performed with reasonable care
and intention. The change in circumstances with lack in availability of required elements led to
breach of duty.

TASK 3
Kasper being the trustee of Lantry Charitable Trust E 10,000 from trust in February 2019.
He takes that money and transfers it to his own bank account in which there was already some
money. Kasper bought some shares from E7 ,000 and used another E7 ,000 to buy a car. He then
even withdraw E5,000 to give to his son Ben for paying deposit for this apartment (Miller,
2022). On being bankrupt, he transferred the left over shares to his daughter Julia which was now
E8,000.
Advise the beneficiaries of the Lantry Charitable Trust on their position. Advise the son
and daughter on the gifts made to them.
The beneficiaries of Lantry Charitable Trust should recognise the problem on their own accord
with holding an enquiry upon Kasper. The accounts of Kasper must be sealed with brief
interrogation of his spendings from his personal account. The important details of account must
not be disclosed so that the confidential information of the trust remains safe.
Son and daughter are advised to not use the gifts as there is conflict on the main owner of money.
They must not forward those gifts or use it for any other purpose as their liability will be more on
inquiry of the transfer of shares from the account of Kasper.
Impact of illegality on legal presumptions is that there will be no enforcement of illegal
bargains by the court. If the contract is declared illegal then it will no longer exist and thus be
void and unenforceable. There will be no relief or compensation granted if the contract granted is
illegal. There may be no action on matters of compensation as the contract is declared null and
void.
Conditions for tracing in law and in equity are that there must be existence of equitable title.
The existence in such titles is brought before the courts in the form of Constructive trusts. There
must also be some relation between the claimant and defendant with the existence of fiduciary
relationship between them.
The conditions for tracing in law and equity are the remaining of property with the fiduciary or
trustee who is at default and has utilised that property for his personal use (Muritano, 2022). The
condition where the property was transferred to third party. The tracing of common law cannot
be assessed for recognition of identified assets in order to be the subject matter of claim.
Common law claim cannot be identified for assets of subject matter to be traced for equitable
tracing. Tracing is not mandatory to be given as its upon the discretion of court to award it or

not. The remedy for removing the defects in the property in order to gain property rights foe
enforcement of value of asset determines tracing of equity.
Application of the change of position defence- Determining the change of position, which is
states a defence upbringing a claim which is in the purview of the unjust enhancement, which
gravitates it operating to lower down the liabilities of the defendant in the scope belonging to the
circumstances of the events in which the individual was involved (Piller, 2019). Th occurrence of
the circumstances has been interchanged as a result of the enhancement. The consideration of an
absolute failure will be determined in the extent of the change of position defence, this
apparent;y stands strong under the measures where the case is thoroughly a mistake or in the
purview where the change of position acting as defence is prescribed to be in the means of
availability. The overlooked facts of the case where the defence which tends to handling as the
rights of the wrongdoer (Nancarrow 2019). Therefore, where the facts states there is no
consideration involved there will be no applicability of change of position defence. In the scope
of trust law, individuals acting as the trustees are solely liable for the beneficiaries, under the
circumstances where is three has been the breach of trust, there can be occurrence of losing of
the trust fund. In the facts of the case, where Kasper being the trustee of the Lantry Charitable
Trust, as the amount of money of 10,000 dollars which was attained in the scope of breach of
trust. As the sum of money which was taken away by kasper was due to the breach of trust then
the anyhow, he has lost the trust funds after the act he pulled off. The terms which are related in
the field of trust issues involved carrying a distributions of trusts or the assets in the extent of
trust and given them to the beneficences who is not involved in the label of true beneficiary
under the conditions of the documents contains the valuation of trust (Griffin,2022).
The statutory relief regarding to the issue, the applications will taken out from the TRSUTEE
ACT, 1925 , which is given under the provisions mentioned in the act under the Section 61 of
the enactment (Sheehan,2019).
Rationale for the fiduciary relationship in equitable tracing- The major use of the
apprehension of the duties relating to the fiduciary which will be implicated on a individual or
the parameters of the company which ultimately gravitates to utilize the discretionary powers,
but that also acting in the interests of the other individual, all these measures which eventually
give hitch to the happenings of the trust and confidence relationship. In the scope of the fiduciary
tracing in the matters of the equity which can be applied accordingly (Etzler,2020). The matters

of the fiduciary tracing is explained in the case of Re Hallet's Estate, where the court of law
states that any of the fiduciary relationship was adequate enough to authorize the tracing the
claims in the parameters of equity. Clearly, equity permit tracing of intermixed proxy belonging
on the matters of the entirely third party receiver. Attributing the forbidden scenarios of the
clause by the court of law where the course of action of crediting the fiduciary relationship in a
much more broad scope, still dependency is contributed on the measure of the circumstances.
The wholesome rights of equitable trust carried out from the purview of relationships which
comes within the parameters of the trust and confidence. In the present case scenario where
Kasper has attained the trust funds getting involved and doing the breach of trust the court of law
has the discretions of powers to attain the maintenance of the funds he has used to give his son
an daughter. As the funds were gained by wrongful means the court of trace the claim and the
sum of amount and probably get involved with the roots of the case. The money which was given
by Kasper to his son and daughter will be eventually traced and get back with the Lantry
Charitable Trust (Bray, 2018).
TASK 4
FACTS : As the Aziz, was earlier the employee Mob-apps, within the filled contractual
obligations of contractual obligations, Aziz under the tenure of the contract was not allowed to
work for any other software company. Aziz have joined the Comp. Software co. and took all the
material and other subject matter related to his app with himself. Mob-apps was totalled by the
scenario, if Aziz could design and introduce the app by his own
The above problem required advise on the performance legalities for the company of Mob-app
on persuaded equitable remedies, And contemplate when specific performance and injunction
can be granted
APPLICATION ADVISE : To provide the overview there are subsequently three types of
remedies in the subject matter of equity, which includes Specific performance, Injunction and
Restitution
The remedies are mentioned below :
SPECIFIC PERFORMANCE: This can be defined as as the order from the division of judiciary
in pursuit of the terms and conditions, mentioned contractual obligations will be taken taken care
of and precisely full filled by the party. In the purview of the specific performance. Which is
eventually considered as the alternative in the scope remedies give through and through for the

damages and worthwhile depends on the discretion of the court of law, standing within the
purview of the exceptions. Under the state of affairs of the specific performance which is
determined to be very limited kind of remedy which is available for the breach of contract and
reading between the lines, is is specified its scope for the understanding particular items or other
subject matters. The particular subject mater can be persuaded in the extent of property, any
parcel or the property. This solution allows the party which has been injured by the breach to let
go and buy new subject matter which will eventually resolve the issue (Roberts,2018).
INJUNCTON : This is the kind which is determined as the second kind of remedy under the
scope of equity. This components works for both contract and law of tort. This is scattered along
upon just like a restraining order, which forbid an individual to stop doing something which the
individual is not supposed to do. An illustration to the application of rule, supposedly if an
employee is acting reverse to the role of the contract of employment, which features on the
amount to the respective employer, manager or precisely other members of the organisation,
when the employee has involved to be in the breach of the contract , issuing with the competency
of the employee the court of law will persuade to issue an injunction, in the followed condition's
will be applied to forbid from such application of competition (Hameed,Padgett, Clements,and
Ullah, 2020 ). The scope of the negative promise which was mentioned in the case of Madison
Square Garden v Carnera Corporation, under the provisions of Section 16.6.3, which states the
Injunctions and the Negative Covenants. The case laws mentioned the specific and general
applications the rule of injunction (Shashank2021).
RESTITUTION : The third ideal type of relief which is provided under the extent of the equity,
is called restitution. Inside the subject matter is restitution, which involves various types of
scenarios on which the application of this remedy is circumscribe, such as ,
In the cases where the contract has been ignored or inflicted to be steer clear of because of
incapacity to contract or misrepresentation.
under the circumstances where the other has breached the contract and neglected the
considerations which were prescribed to be the part of the contractual obligations
In the cases of the contract where the parties has been keen to seek the scope of
restitution
To put out the simplifications of the term restitution which entails, the restoring of the subject
matter to the one party which is given to the other party of the contract. However, on the in the

scope of where the other party has been brainstorm with the consultations huddle and the other
party states as the injures party has been speculated with the factor of restitution (Hedley,2019).
The entire viewpoint of the scope of prescribed meaning of the restitution, that the
individual who has done the breach shall not be proven to get wretch punishment and the
individual who is considered to be the party who is injured must not be deprived of justice
(Gunson,and Klemme,2019.).
When specific performance can be granted- The application of the specific performance which
will turned to be applied in the scope, when the subject matter of the manoeuvre of contract will
be determined to be distinctive and eccentric. It also involves when the contract ideologies and
the liabilities in it does not just constraint itself to the fiscal value factor. It includes the purview
of contract where the absolute value of the sum of money is clearly determined and the damages
which occurred are not transparent or clearly mentioned by the parties as well. The contact must
be a part of some specific type of property, or any other subject matter for the case on point, if
the damages muddled up in the scope of monetary basis which is very trivial the the
accommodated prima facie remedy will be not given to the buyer. In the mentioned facts of the
case above, where Aziz has left the company, being obligated under his contract of employment.
Under the provision of specific performance the company, the organisation can ask Aziz not to
use the material of the app, he has taken away from the company. The assets belong to the
company mob-apps and were created in the term of employment of the company. As Aziz has
shifted to Comp Software co., he is entitled to full fill firstly the contract tenure in the Mob-app
company and he is forfeited to the asset and other material along.
CONCLUSION
The above essay includes the elucidation of the structure of equity, events related to the
purview of history and the developments and other reforms which are mentioned in the scope of
equity law, later it comes along with the mentioning the relationship between the equity and law
and later it determined the components which are defined as the essentials of the trust law. In the
purview of task 2, which states the difference between trust and a gift, different kinds of trust,

essentially living, revocable and irrevocable, effects of transferring the legacies, the subject
matter of transference of legacy and the responsibilities which comes along with the trustee. In
the scope of task 3, which states, the implications of illegalities which stands on the way of
legalities, classifying the terms of tracing in the measurements of the equity law and furthermore
to that, it will lay down the understanding the application of the change in the position defence
within the proper interpretation of fiduciary relationship in the measures of equitable tracing.
Lastly, task 4 of the essay prescribes the remedied which are discussed in the purview of the
contractual obligations in the extent of employments and as the mentioned remedy which will
turn out to be essential for the role of task is specific performance.
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