CONSTITUTION

Question 1

How is registered land transferred?

Answer 1

• Registered Landtransfers must be made by deed unders52(1) LPA 1925and registered with the Land Registry unders 27 LRA 2002.
• Legal title passes on registration of the new owner at the Land Registry
• Deed -> clearly intended to be a deed/ signed/ delivered (s1 LP(MP)A 1989)

Question 2

How are shares in a private limited company transferred?

Answer 2

• Sharesin a private company are transferred by the transferor signing a stock transfer form and sending it with the share certificate to the Company’s registrar (s1 Stock Transfer Act 1963).
• Legal title passes on registration of the new shareholder at Company’s House.

Question 3

How are choses in action transferred?

Answer 3

• Choses in action(eg debts and money in a bank account) are transferred by notice in writing to the debtor or to the bank (s 136 LPA 1925).
• Legal title passes once notice has been received.

Question 4

How are chattels transferred?

Answer 4

• Chattels(including physical cash) may be transferred either (i) by deed of gift or (ii) by delivery of the chattel with evidence of the transferor’s intention to transfer it (Re Cole).

Question 5

How are cheques transferred?

Answer 5

• Cheques(and other bills of exchange) in favour of the transferor may be transferred to a third party (i.e. someone other than the named payee) by the transferor endorsing the cheque by signing their name on the back according to theBills of Exchange Act 1882.
• Jones v Lock

Question 6

Is constitution reversible?

Answer 6

No! It is irrevocable

• Once a trust is constituted the settlor ceases to have any beneficial or legal interest in the trust property (providing all other requirements for creating the beneficiary’s interest have also been satisfied).
• The same is true of gifts.

Question 7

What is the rule in Milroy v Lord?

Answer 7

‘equity will not perfect an imperfect gift’

• if there is failure to constitute, equity cannot save it
• If legal title to property has not been transferred using the correct method then under the rule inMilroy v Lordthe disposition will fail.

Question 8

What are the 3 possible exceptions to the rule in Milroy v Lord?

Answer 8

1. Principle in Re Rose
2. Fortuitous Vesting
3. Donationes Mortis Causa

Question 9

What are the requirements for exception in Re Rose?

Answer 9

1. Thecorrect method of transferhad been used
2. The transferor had done everything within his own powerto effect the transfer
3. The documentation ended upin the hands of the person capable of effecting the legal transfer
   - If the correct method of transfer has been used, the transfer will be irrevocable if the transferor puts the matter beyond their own control.

Question 10

When will Fortuitous vesting apply?

Answer 10

When the intended recipient of a gift is also the personal representative of the transferor’s estate
- can be one of several executors

Question 11

What are the conditions required for fortuitous vesting to apply?

Answer 11

1. There must be an intention to make an immediate gift (Re Freeland)
2. The intention must continue until the donor’s death (Re Gonin)
3. The intended donee becomes an executor (or one of the executors) of the donor’s estate (Re Stewart)

Question 12

What are the conditions for a valid DMC?

Answer 12

• The gift is made incontemplation(though not necessarily expectation) of death from an identifiable cause which the donor believes to be imminent
• The gift isconditionalon death
• There isdeliveryof the property; the donor must part with ‘dominion’ (control) of the property by handing it, or something which represents title (not simply possession) to the donee.