Task 1 – 800 words
Evaluate the basic principles of Equity as a part of English System of Law.
: Explain the mechanics of creating express trust including rights of beneficiaries.
: Distinguish different types of trust with analysis of nature of respective rights and obligations of the parties to the trust.

Task 2 – 1200 words
Analyse the way trusts are used in commercial transactions and issues are dealt according to the norms of contract and trusts law.
: Explain the particular context of commercial transaction into contact with trusts law and equity.
: Demonstrate the interactions between contract law and trusts law and explain how trusts are not bound up with contract.
: Critically analyse how trustees limit their liabilities including a provision in their contract of appointment and exclude liability for a range of defaults.

Solution

Introduction

A trust is a relationship in which an asset is under the management of one party on behalf of another (Thomson 10). The owner of the asset who is known as the settlor, trustor or the guarantor establishes the relationship. The property is then transferred to a trustee who holds it for the trust’s beneficiaries. The first part of this paper will evaluate the basic principles of equity as part of the English System of law. The second part analyses how trusts are used in commercial transactions and issues dealt with according to the norms of contract and trust laws.

Task 1

Mechanisms of creating express trust including the right of beneficiaries

A trust can take a variety of forms based on the context in which it was formed. Traditionally, a trust was created to solve issues relating to freedom of isolation and payment of taxes (Palmer et al. 163). In the modern world, a trust can be used in a wide range of context to attain different social and economic benefits. An express trust is one that is founded by a deliberate act of the settlor or a testator in case of a will, it can further be categorised into two, a private and public trust. The former is one whose beneficiaries are people closely related to the settler, such as family members and close friends (Rickett 57)……………………………………….To access the rest of the solution for $15, please click on the purchase button.