1|Page
PGDL EQUITY AND TRUSTS FINAL EXAM NEWEST
2025 ACTUAL EXAM COMPLETE EXAM QUESTIONS
AND CORRECT DETAILED ANSWERS WITH
RATIONALES (VERIFIED ANSWERS) |ALREADY
GRADED A+ //LATEST EXAM!!!
What is an express trust? - Answer-A trust created
intentionally by the settlor.
What are the three certainties required to create an
express trust? - Answer-Intention, subject matter, and
objects.
What is the importance of precatory and imperative words
in creating an express trust? - Answer-Precatory words
express a hope or desire, while imperative words create a
binding obligation.
How is the meaning of words in a written document
determined when creating an express trust? - Answer-By
natural and ordinary meaning, relevant contextual
features, facts known to or assumed by authors, common
sense, and implied terms in formal documents.
,2|Page
Is the characterization of something as a trust in a formal
document conclusive? - Answer-No, it is not (Modelboard
v Outer Box Ltd; Don King v Warren)
Lord Millet quote from Twinsectra v Yardley about intention
- Answer-"a settlor must, of course, possess the necessary
intention to create a trust, but his subjective intentions are
irrelevant. If he enters into an agreement which have the
effect o creating a trust, it is not necessary that he should
appreciate that they do so: it is sufficient that he intends to
enter into them".
Can implied terms be taken into account in documents
when looking at intention for express trusts? - Answer-YEs
(Lehman Brothers)
Is use of word trust determinative of whether there is a
trust? - Answer-No, nature of relationship is determined by
substantive rights NOT label (Re Kayford)
Cases on segregation of assets showing intention to
create trust - Answer-Re Kayford; Mac-Jordan
Construction v Brookmont Erostin; Lyell v Kennedy (Earl of
, 3|Page
Shelbourne said seperate account "indicative of some sort
of trust)
In which case was freedom to use sums credited to
customer account fatal to certainty of intention for express
trust? - Answer-Customs and Excise Commissioners v
Richmond Theatre Management
Which case shows that people do not even need to know
what a trust is to intend to create one? - Answer-Paul v
Constance (words "this money is as much yours as mine"
enough)
Cases where treating sole bank account as joint was
indicative of intention to create trust? - Answer-Paul v
Constance; Henry v Hammond (person "bound to keep
money separate" is "a trustee of the money" per Channell
J)
What is a Quistclose trust? - Answer-Trust combining a
debt and a trust for a specific purpose (commonly in
debtor-creditor relationship, eg Foley v Hill)
PGDL EQUITY AND TRUSTS FINAL EXAM NEWEST
2025 ACTUAL EXAM COMPLETE EXAM QUESTIONS
AND CORRECT DETAILED ANSWERS WITH
RATIONALES (VERIFIED ANSWERS) |ALREADY
GRADED A+ //LATEST EXAM!!!
What is an express trust? - Answer-A trust created
intentionally by the settlor.
What are the three certainties required to create an
express trust? - Answer-Intention, subject matter, and
objects.
What is the importance of precatory and imperative words
in creating an express trust? - Answer-Precatory words
express a hope or desire, while imperative words create a
binding obligation.
How is the meaning of words in a written document
determined when creating an express trust? - Answer-By
natural and ordinary meaning, relevant contextual
features, facts known to or assumed by authors, common
sense, and implied terms in formal documents.
,2|Page
Is the characterization of something as a trust in a formal
document conclusive? - Answer-No, it is not (Modelboard
v Outer Box Ltd; Don King v Warren)
Lord Millet quote from Twinsectra v Yardley about intention
- Answer-"a settlor must, of course, possess the necessary
intention to create a trust, but his subjective intentions are
irrelevant. If he enters into an agreement which have the
effect o creating a trust, it is not necessary that he should
appreciate that they do so: it is sufficient that he intends to
enter into them".
Can implied terms be taken into account in documents
when looking at intention for express trusts? - Answer-YEs
(Lehman Brothers)
Is use of word trust determinative of whether there is a
trust? - Answer-No, nature of relationship is determined by
substantive rights NOT label (Re Kayford)
Cases on segregation of assets showing intention to
create trust - Answer-Re Kayford; Mac-Jordan
Construction v Brookmont Erostin; Lyell v Kennedy (Earl of
, 3|Page
Shelbourne said seperate account "indicative of some sort
of trust)
In which case was freedom to use sums credited to
customer account fatal to certainty of intention for express
trust? - Answer-Customs and Excise Commissioners v
Richmond Theatre Management
Which case shows that people do not even need to know
what a trust is to intend to create one? - Answer-Paul v
Constance (words "this money is as much yours as mine"
enough)
Cases where treating sole bank account as joint was
indicative of intention to create trust? - Answer-Paul v
Constance; Henry v Hammond (person "bound to keep
money separate" is "a trustee of the money" per Channell
J)
What is a Quistclose trust? - Answer-Trust combining a
debt and a trust for a specific purpose (commonly in
debtor-creditor relationship, eg Foley v Hill)
