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UNlVERSlTl TEKNOLOGI MARA

FINAL EXAMINATION

: EQUITY AND TRUST

COURSE CODE

: LAW5011233
: 23 MARCH 2005

: 3 HOURS (9.00 A.M. 12.00 P.M.)

: NOVEMBER 2004 - APRIL 2005

1.

This question paper consists of THREE (3) parts:

2.

Answer ALL questions from all THREE (3) parts in the Answer Booklet. Start each answer
on a new page.

3.

Candidates are allowed to bring in the Specific Relief Act 1950 (unannotated)

4.

Candidates are strongly advised to allocate not more than 60 minutes for answering
questions in PART A.

5.

Do not bring any material into the examination room unless permission is given by the
invigilator.

6.

Please check to make sure that this examination pack consists of:
(i)
the Question Paper
an Answer Booklet - provided by the Faculty
(ii)

PART A (5 Questions)
PART B (2 Questions)
PART C (1 Question)

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 4 printed pages
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PART A
QUESTION 1
State the main conditions that must be satisfied before a court may declare a fully secret
trust to be valid.
(6 marks)
QUESTION 2
Topsy, who died recently, left a will containing the following disposition "My Gulf Stream jet,
'Enola Gay', to my wife Turvy absolutely in full confidence that she will hold it for either my
daughter Inez or my son Sastre".
Determine whether the above disposition constitutes a valid trust.
(6 marks)

QUESTION 3
Maitland says that equity is but a gloss upon the law. Do you agree?
(6 marks)

QUESTION 4
Ash granted Trey an option to purchase Lot 747 Damansara Utama (Lot 747) for
RM100,OOO. Ash bequeaths all his real property to Slice and all his personal property to
Dice. Two weeks later Ash died and Trey exercised his option to purchase Lot 747.
Determine the rights of Slice and Dice in equity with regards to the above event.
(6 marks)

QUESTION 5

"Equity acts in personam".

h i e f l y explain the maxim above with reference to decided cases.
(6 marks)

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PART B
QUESTION 1
a)

"A trust is the binding of the conscience of one to the intention of another" per
Viscount Sumner in Blackwell v Blackwell (1929) AC 318.
Explain the rationale of the above statement with reference to secret trusts.
(10 marks)

b)

In 2002 Gabriel made a will in which he left "RM50,OOO to my partner, Jason." Afler
making the will he called Jason to his room and told him that he was leaving him the
money to hold in trust for Josephine, his first love whom he could not marry due to
parental objections. Gabriel wanted to provide for Josephine as a gesture of his love
but he did not want to hurt his wife's feelings while he was still alive. Jason agreed to
the request.
In 2003 Gabriel decided to give Josephine another RM20,OOO but could not inform
Jason as the latter had gone to Canada to spend Christmas with his siblings who had
migrated there. Gabriel therefore decided to inform Adam, his executor, about his
intention and executed a codicil to his will which read, "By this codicil I leave another
RM20,OOO to my partner, Jason, for the purposes that I have made known earlier".
Gabriel died before Jason returned from his overseas trip.
Advise both Jason and Adam on their legal position under the law of trusts.
(10 marks)

QUESTION 2
When Bonnie married Clyde in Mac 2004, Bonnie covenanted by deed with Peach and Pear,
the trustees of the marriage settlement, to bring the following into the marriage settlement:
i)
ii)

Lot 501 Jalan Cecawi 6 Kota Damansara (Lot 501) which she owned;
any property which she might thereafter acquire.

Under the terms of the marriage settlement, the property subject to it was to be held in trust
for Bonnie and Clyde for their joint lives, children and remoter issue of the marriage and,for
Bonnie's next of kin.
In September 2004, Bonnie conveyed Lot 501 to the trustees of the marriage settlement. In
December 2004, Bonnie's father died and he bequeathed to her his shares in Naga Merah
Bhd.
In February 2005, Bonnie and Clyde both died in a boat accident. They did not have any
children. The shares in Naga Merah Bhd were still in Bonnie's name at the time of her death.
In her will, Bonnie appointed Beyonce as her executrix and lefl all her property to charity.
Advise Nelly, Bonnie's sole surviving next of kin.
(20 marks)

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PART C

QUESTION 1
In a will dated 13 December 2004, Mr. Corleone appointed Luca and Brasi as his executors
and trustees. The will contained the following dispositions:
i)
ii)
iii)

My Ferrari 'Beretta' bearing the registration number MAF 14 to my daughter

Estefania.
My luxury yacht, 'Cosa Nostra', in trust for my dear wife, Alexandria.
The family's mansion in trust for the benefit of the employees of Olive Oil Sdn Bhd.

In Mac 2005, Mr. Corleone died from cancer. Before his death, Mr. Corleone sold his Ferrari
'Beretta' to his close friend Vicenzo for RM500,OOO. Estefania now claimed that the proceeds
from the sale of the car should be given to her since the car was meant to be hers as
evidenced from the will of her father.
Alexandria died a month after Mr. Corleone's death and the children wanted to know the
status of the trust created on 'Cosa Nostra' in favour of their mother.
Mr. Corleone, during his lifetime, told his son, Anthony, that he could have the family's
mansion. Based on the statement made by his father, Anthony had used his own money to
make renovations and improvements to the mansion. Unfortunately for Anthony, the title to
the house was never transferred to his name and thus the house remained his father's until
the time of his death. Anthony now demanded that the executors transfer the ownership of
the house to him.
In the light of the above facts:
a)

Determine whether Estefania is entitled to the proceeds from the sale of the car.
(5 marks)

b)

Determine the status of the trust created on 'Cosa Nostra'.

c)

Advise Anthony as to his right under the law of trust in relation to the family's
mansion, if any.
(10 marks)

d)

Discuss the validity of disposition (iii) of Mr. Corleone's will.

(5 marks)

(10 marks)

END OF QUESTION PAPER

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