Pennington v Waine

Facts

Ada Crampton signed a share transfer to her nephew, which was given to an agent but never delivered to the nephew or the company. She told the nephew, and he became a director in reliance.

Issue

Was the gift complete though she had not done all she could?

Held

Yes. The Court of Appeal held it would be unconscionable for her to resile, so the gift took effect in equity.

Principle

A gift may be complete in equity where it would be unconscionable for the donor to recall it.

Why it matters

It is controversial because unconscionability is a vague test.

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