Re Kayford Ltd
1974 · [1975] 1 WLR 279
Posted By lanbuk.com
- Facts
- A mail-order company, worried about its finances, put customers' advance payments into a separate account, to be refunded if goods were not delivered. It went into liquidation.
- Issue
- Was the money held on for the customers?
- Held
- Yes. Megarry J held that the company had shown an intention to create a trust, though the word trust was not used.
- Principle
- No special words are needed to create a trust. What matters is the intention shown by words or conduct.
- Why it matters
- It is a key case on certainty of intention and insolvency.
Words and Latin in this note
- Trust
- An arrangement in which a trustee holds property at law but must use it for beneficiaries, or for a charitable purpose. The beneficiaries have the equitable interest. Open the note.
For study only. By lanbuk.com. Always check current sources and consult a qualified professional.