Property law (land law and law of equity and trusts) Essay

Property law (land law and law of equity and trusts) - Essay Example Section 53 (1)(c)states as follows: The purpose behind setting out this clause was to prevent fraud in hidden transfers of equitable interests and in order that trustees who hold the legal interests are able to identify those equitable interests. There is a conflict that arises in terms of the disposition of the legal owner of the trust as set out in the written instruments vis a vis the equitable owner/s or beneficiaries of the trust, since equity starts out in the form of a measure of â€Å"confidence reposed in some other† which imposes â€Å"a duty or aggregate accumulation of obligations† that connotes some beneficial interest2. Where the disposition of a trust has been set out in writing or by deed, the Courts must give effect to it. In fact, the law of formalities has created inflexibility in some cases and there have been instances where the interests of beneficiaries have been compromised. For example, in the case of Re Diplock3 that concerned the disposition of a trust, the general principle th at was laid down was clarified by Pettitt, who states that whenever there is an initial fiduciary relationship, the beneficial owner of an equitable proprietary interest in property can trace it into the hands of anyone holding the property except a bona-fide purchaser for value without notice4. Property held in trust for a beneficiary is generally meant to be assigned on the basis of equity and though the process of tracing is helpful to locate beneficial interests in a trust, Petitt clarifies that this is only possible to the extent that the fund can be followed and identified; if on the facts of any individual case, such continued existence is not established, equity is helpless.†5†¦..(422 words) (a) Certainty of intention: This is based upon the equitable maxim that equity looks to intent rather than form, as set out in the case of Paul v Constance6, where the Court inferred the presence of a trust in spite