LAW OF EQUITY & TRUSTS Essay Example | Topics and Well Written Essays - 3500 words

LAW OF EQUITY & TRUSTS - Essay Example The legal and equitable estates had not been divided prior to the making of the security agreement.† 2 This qualifies the applicability of the requirement established in the law. Moreover it has been contended that The underlying policy was to :- a. prevent fraud by prohibiting oral hidden transfers of equitable interests under trusts and b. assist trustees by enabling them to identify the whereabouts of the equitable interest subsisting under a trust. 3 This indicates that even civil interactions among citizens state policy is to prevent prejudice, injury and fraud. That is made manifest by the measures embodied in law. It is the policy of the state that even in private transaction rights of citizens is upheld and propensity for the travesty against rights is extensively limited. Lord Radcliffe in Grey v Inland Revenue Commissioners [1960] AC 1 did suggest that ‘there is warrant for saying that a direction to his trustee by the equitable owner of trust property prescribing new trusts of that property was a declaration of trust’, but even if that were the case, his Lordship observed that the direction might nevertheless be a disposition falling within s. 53(1)(c) (and thus in need of written form) if ‘the effect of it was to determine completely or pro tanto the subsisting equitable interest of the maker of the direction’.4 This implies that as the controlling doctrine provides that the meaning of the provision is clear. Written proof is necessary to establish a transfer of equitable interest. Moreover, this is the case, even if there already is a relationship wherein the transfer has been had. Absence of written proof or documentation to this effect shall be construed as the absence of a valid and legal transfer. As to whether the direction to the bank had been void for lack of written formality, the House of Lords held that s. 53(1)(c) only applied to cases where the equitable interest in