a) State and explain three (3) ways in which the courts would not assist a volunteer to perfect an imperfect trust

b) Explain presumed and automatic resulting trusts

(20 marks)

a) Three ways courts would not assist a volunteer (person giving no consideration) to perfect an imperfect trust:

  • Equity will not perfect an imperfect gift: If transfer is incomplete (e.g., no deed for land), courts won’t enforce (Milroy v Lord (1862) 4 De GF & J 264). In Ghana, applies to failed donations, preventing claims without value given.
  • No assistance for volunteers under covenants: A covenant to settle property isn’t enforceable by volunteers (Re Pryce [1917] 1 Ch 234); courts won’t compel performance.
  • Strong v Bird rule exceptions limited: While imperfect gifts can be perfected if donor appoints donee as executor, it doesn’t apply broadly to volunteers without intent throughout.

b) Presumed resulting trusts: Arise from presumption of intent, e.g., where A buys property in B’s name, trust presumed for A unless rebutted (Dyer v Dyer (1788) 2 Cox Eq Cas 92). Automatic resulting trusts: Occur by operation of law when express trust fails (e.g., uncertainty), property results back to settlor (Vandervell v IRC [1967] 2 AC 291). In Ghanaian banking, used in failed trust setups during asset transfers, ensuring equity prevents unjust enrichment.

(Marks allocation: 9 marks for part a (3 per way); 11 marks for part b explanations with cases.)

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