What is the satisfaction?
6.
Satisfaction
Satisfaction is the gift or donation ofa thing with the intention that it shall be taken either wholly or partly in extinguishment of some prior claim of the donee.” The doctine is founded on the maxim that equity imputes an intention to fulfil an obligation.
What is the requirement of satisfaction
- The legacy must not be of lesser amount than as the debt. Here, there can be no satisfaction pro tanto
- The legacy must be of the same type of property as the debt. For instance a devise of land or bequest of chattel cannot be satisfaction of a debt of money.
- The legacy must be in every way as beneficial as the debt.
- The will must have been made after the debt was incurred. If otherwise the presumption will not apply.
- The testator must not have shown an intention that both some should be payable. An example is the where the testator gives his credit and Legacy, and at the same time directs his executed to pay his debt.
What does ademption means
As it applied to satisfaction, ademption means that where a testator gives a legacy to his child by his will and later gives that child a portion, the portion is presumed to be in substitution for the legacy and the legacy will, therefore, be adeemed (i.e. taken out of the will.) The child cannot benefit twice to the prejudice of other children. This is a presumption which is rebuttable by evidence of the father’s real intention.
When the donor is not the father or person in loco parentis
The donor must be the father or person standing in loco parents. Where the donor is not a father or person in loco parents to the done, the latter may retain the two benefits in full and no presumption against double gift is raised. A grandchild for this purpose is not a child but treated as a stranger unless there is evidence that donor has placed himself in loco parentis to him.* A portion means any gift for the purpose of establishing the child in life or making provision for his future. It must constitute a permanent provision for the child and the gift must be a substantial one. A series of small gifts will not add up to a portion.
However the presumption of satisfaction or ademption may be rebutted by showing
The presumption of satisfaction or ademption may be rebutted by showing that:
(a)
(b)
(c)
the intention of the testator was that both gifts should be enjoyed; there are substantial differences in the nature of the two gifts; and the gift of the portion inter vivos came before the making of the will. Here, the child can take both benefits as no intention of satisfaction can be implied.
Satisfaction of Portion debt by Legacies or Portion
A portion-debt is an obligation to give a portion. The principle is that where a father or person standing in loco parents has undertaken to give portion and then gives legacy or share of residue to the child by his will, there is presumption that the legacy or share of residue was intended as a satisfaction of the portion-debt, so that prima facie, the child cannot claim both the legacy as well as the amount of portion-debt. If the legacy is of less value than the portion-debt, it will be a satisfaction pro tanto.
Also, where a father or person in loco parents agrees to gives a portion to the child and subsequently makes some other provision for the child in his life time, such provision is presumed to be a complete or partial satisfaction of the agreed portion.
This presumption can be the rebutted by evidence of the donor’s real intention. The rules governing this type of satisfaction are generally the same as in satisfaction (ademption) of legacies by later portion discussed above.
What are the requirements of Satisfaction
- The donation must have been made in such circumstances that an intention on the part of the donor to satisfy an obligation can be presumed
- There are some prior existing claim of the donee
