EQUITY AND TRUSTS- EXAM QUESTIONS -THE
THREE CERTAINTIES EXPRESS TRUSTS &
INTENTION(VERIFIED ANSWERS)
1. Express Trusts: Definition and Creation
Q1. Which of the following best describes an express trust?
A. A trust imposed by law regardless of intention
B. A trust created intentionally by a settlor or testator
C. A trust arising automatically upon transfer of property
D. A trust created only by written deed - ANSWER-answer-B. A
trust created intentionally by a settlor or testator
Express Trusts: Definition and Creation
Q2. According to Milroy v Lord (1861), an express trust may be
created by:
A. Transfer to a beneficiary only
B. Self-declaration only
C. Either self-declaration or transfer to a trustee
D. Written declaration witnessed by beneficiaries - ANSWER-
answer-C. Either self-declaration or transfer to a trustee
2. Forms of Express Trusts
Q3. Which feature best distinguishes a fixed trust from a
discretionary trust?
A. The number of trustees
B. The certainty of subject matter
C. The certainty of beneficiaries' entitlement
D. The requirement of writing - ANSWER-answer-C. The certainty
of beneficiaries' entitlement
2. Forms of Express Trusts
, Q4. In a discretionary trust, potential beneficiaries initially hold:
A. Legal title
B. A fixed equitable interest
C. A mere equity
D. No interest at all - ANSWER-answer-C. A mere equity
3. The Three Certainties (Knight v Knight)
Q5. Which case authoritatively established the three certainties?
A. McPhail v Doulton
B. Milroy v Lord
C. Knight v Knight
D. Paul v Constance - ANSWER-answer-C. Knight v Knight
3. The Three Certainties (Knight v Knight)
Q6. Which of the following is not one of the three certainties?
A. Certainty of intention
B. Certainty of subject matter
C. Certainty of consideration
D. Certainty of objects - ANSWER-answer-C. Certainty of
consideration
4. Certainty of Intention - General Principles
Q7. Certainty of intention requires that:
A. The settlor uses the word "trust"
B. The settlor understands trust law
C. There is an objective intention to impose a trust obligation
D. The trust benefits at least two beneficiaries - ANSWER-
answer-C. There is an objective intention to impose a trust
obligation
4. Certainty of Intention - General Principles
Q8. Which case confirms that the word "trust" is not required to
create a trust?
A. Knight v Knight
B. Paul v Constance
THREE CERTAINTIES EXPRESS TRUSTS &
INTENTION(VERIFIED ANSWERS)
1. Express Trusts: Definition and Creation
Q1. Which of the following best describes an express trust?
A. A trust imposed by law regardless of intention
B. A trust created intentionally by a settlor or testator
C. A trust arising automatically upon transfer of property
D. A trust created only by written deed - ANSWER-answer-B. A
trust created intentionally by a settlor or testator
Express Trusts: Definition and Creation
Q2. According to Milroy v Lord (1861), an express trust may be
created by:
A. Transfer to a beneficiary only
B. Self-declaration only
C. Either self-declaration or transfer to a trustee
D. Written declaration witnessed by beneficiaries - ANSWER-
answer-C. Either self-declaration or transfer to a trustee
2. Forms of Express Trusts
Q3. Which feature best distinguishes a fixed trust from a
discretionary trust?
A. The number of trustees
B. The certainty of subject matter
C. The certainty of beneficiaries' entitlement
D. The requirement of writing - ANSWER-answer-C. The certainty
of beneficiaries' entitlement
2. Forms of Express Trusts
, Q4. In a discretionary trust, potential beneficiaries initially hold:
A. Legal title
B. A fixed equitable interest
C. A mere equity
D. No interest at all - ANSWER-answer-C. A mere equity
3. The Three Certainties (Knight v Knight)
Q5. Which case authoritatively established the three certainties?
A. McPhail v Doulton
B. Milroy v Lord
C. Knight v Knight
D. Paul v Constance - ANSWER-answer-C. Knight v Knight
3. The Three Certainties (Knight v Knight)
Q6. Which of the following is not one of the three certainties?
A. Certainty of intention
B. Certainty of subject matter
C. Certainty of consideration
D. Certainty of objects - ANSWER-answer-C. Certainty of
consideration
4. Certainty of Intention - General Principles
Q7. Certainty of intention requires that:
A. The settlor uses the word "trust"
B. The settlor understands trust law
C. There is an objective intention to impose a trust obligation
D. The trust benefits at least two beneficiaries - ANSWER-
answer-C. There is an objective intention to impose a trust
obligation
4. Certainty of Intention - General Principles
Q8. Which case confirms that the word "trust" is not required to
create a trust?
A. Knight v Knight
B. Paul v Constance
