In re northern development holdings, megarry v-c regarded the primary quistclose trust as an express trust, but avoided this conclusion by classifying it as a purpose trust whereas, in carreras rothmans v freeman matthews treasure, peter gibsson j stated that the primary quistclose trust as a constructive trust. Quistclose trusts demonstrate an analogous attempt by suppliers of credit in that ( in most priestley lj, “the romalpa clause and the quistclose trust” in pd finn (ed), equity and commer- cial relationships (law book co, 1989) would almost inevitably be categorised as a charge for qmc's interest in the new items.
3 why does equity recognise resulting trusts 4 the presumption of advancement 41 application of the presumptions to family property 5 voluntary transfers of property 6 resulting trusts arising on failure of an express trust 7 resulting trusts arising in other cases of failure of basis: the quistclose trust. In the context of insolvency regimes: should quistclose trusts be subject to legislative controls, given their apparent ability to circumvent legislative provisions various commentators have attempted to categorise quistclose trusts as express trusts, resulting trusts, sui generis trusts, or even full beneficial transfers coupled. The term resulting trusts comes from the latin term resalire meaning to jump back and we will see how this applies to property in westdeutsche landesbank.
Commercial uses of trusts introduction quistclose trusts categorising thequistclose mortgages charges and taking security welfare uses of trusts 3 part 9 26 27 27 freezing injunctions search orders interaction withthe common 29 30 31 subrogation the nature of property in equity and trusts. Quistclose per lord wilberforce: i can appreciate no reason why the flexible interplay of law and equity cannot let in these practical arrangements (iv) express or resulting trust the 'quistclose trust' has been categorised as a species of resulting trust by writers (parker and mellows, the modern law of trusts, 9th ed, p.
The imposition of a resulting trust for a settlor may be contrary to their every intention discuss consider the categorisation of megarry in vandervell the discussion above can lead to a discussion of quistclose trusts and how the intention of the settlor is enforced here, so the imposition of a resulting trust in this situation.
Classifying the quistclose trust as an express trust for the lenders leads to further conceptual difficulties one principle of express trusts is that they can be terminated at will, and the property transferred to the beneficiaries at any time taking this logic, if the quistclose trust was an express trust for the.
The primary problem with quistclose trusts is their categorisation within the accepted types of trust the two-part trust structure (primary and secondary trusts) explained by lord wilberforce in quistclose does not appear elsewhere in english trusts law, and the type of trust used affects the. The quistclose trust: intention and the express private trust flona r b u r n s i introduction the trust and debt relationship encapsulated in the leading case of barclays bank limited v quistclose investments limited (hereinafter referred to as 'quistclose')' is one of both academic and practical. Categorising the quistclose trust within the pantheon of established forms of trust is problematic the real problem is explaining the nature of the rights of the lender, the rights of the borrower and the time at which those rights come into existence this two-layered trust structure used by lord wilberforce in barclays bank. This note explains that a quistclose trust is a form of resulting trust that may arise when funds are transferred for specific and exclusive purposes, as explained in twinsectra ltd v yardley and others  ukhl 12 it gives examples from case law of loans and other situations, and summarises factors to consider when.