Equity and Trusts Exam Revision – Answer Structure + Key Cases for
Three Certainties
o The Three Certainties: Problem Question Structure -
1) Introduce the topic area and signpost your answer.
2) Deal with each clause/scenario in turn.
3) Deal with each certainty in turn:
- Certainty of Intention (settlor/owner/testator must show clear
intention to create trust)
- Certainty of Subject Matter (what will the beneficiary receive)
- Certainty of Objects (persons intended to benefit)
4) For each certainty do the following:
- State the legal principle
- Explain the reasons or basis for that principle
- Give Authority (case law)
- Apply the case to the facts
- Conclude (i.e. have the three certainties been met successfully to
create a valid trust? Can John benefit from the money/residue? Is
there a valid interest and why?)
- Evaluate where relevant (compare case judgments and why judges
arrived at that particular decision, has a more recent case set a
precedent to follow? Is the law changing in that area?)
Three Certainties Test: ‘creating a valid trust’ – Knight v Knight (1840):
1) Certainty of intention
2) Certainty of Subject Matter
3) Certainty of Objects
Cases – A) Certainty of Intention
o Imperative Words: An obligation to do something – this will
create a trust and be legally binding.
o Precatory Words: Expressing a wish, hope, expectation, or
recommending. No trust as there is no intent to impose legally
binding obligation.
- Wright v Atkyns (1823) Per Lord Eldon – Is it the owner’s “intention” to
impose an imperative obligation to create a trust?
Three Certainties
o The Three Certainties: Problem Question Structure -
1) Introduce the topic area and signpost your answer.
2) Deal with each clause/scenario in turn.
3) Deal with each certainty in turn:
- Certainty of Intention (settlor/owner/testator must show clear
intention to create trust)
- Certainty of Subject Matter (what will the beneficiary receive)
- Certainty of Objects (persons intended to benefit)
4) For each certainty do the following:
- State the legal principle
- Explain the reasons or basis for that principle
- Give Authority (case law)
- Apply the case to the facts
- Conclude (i.e. have the three certainties been met successfully to
create a valid trust? Can John benefit from the money/residue? Is
there a valid interest and why?)
- Evaluate where relevant (compare case judgments and why judges
arrived at that particular decision, has a more recent case set a
precedent to follow? Is the law changing in that area?)
Three Certainties Test: ‘creating a valid trust’ – Knight v Knight (1840):
1) Certainty of intention
2) Certainty of Subject Matter
3) Certainty of Objects
Cases – A) Certainty of Intention
o Imperative Words: An obligation to do something – this will
create a trust and be legally binding.
o Precatory Words: Expressing a wish, hope, expectation, or
recommending. No trust as there is no intent to impose legally
binding obligation.
- Wright v Atkyns (1823) Per Lord Eldon – Is it the owner’s “intention” to
impose an imperative obligation to create a trust?
