The principle in Saunders v Vautier (1841) 4 Beav 115 allows adult beneficiaries with absolute vested interest, if sui juris and together entitled to the whole beneficial interest, to terminate the trust and demand transfer of property, overriding settlor’s wishes.

• Explanation: Emphasizes beneficiaries as true owners; trustees hold for their benefit. Applies to fixed trusts; beneficiaries can collapse accumulations or postponements.
• Application: In Ghana, via common law, used in family trusts to access funds early, e.g., for business at banks like Barclays Ghana.
• Limitations:
  • Not for contingent interests: If interests not vested (e.g., upon reaching age), can’t apply (Re Smith [1928]).
  • Multiple beneficiaries must agree: All must consent; partial can’t force.
  • Protective trusts: Statutory protections (e.g., against bankruptcy) limit.
  • Purpose trusts or charities: Doesn’t apply as no beneficiaries.
  • Minors/incapacitated: Need court approval.
• Practical: In modern Ghanaian banking, aids flexibility post-DDEP but requires BoG compliance for regulated trusts, balancing ethics and profitability.

(Marks allocation: 8 marks for principle explanation; 12 for limitations with examples.)