Vandervell v IRC
1966 · [1967] 2 AC 291
Posted By lanbuk.com
- Facts
- Vandervell told his bank, which held shares for him, to transfer them to the Royal College of Surgeons. An option to repurchase was given to a company, without saying for whom it was held.
- Issue
- Did the transfer need separate writing, and did Vandervell keep an interest in the option?
- Held
- No writing was needed where the beneficial owner directs the transfer of both legal and equitable title. But the option was held on for Vandervell, because no one else was named.
- Principle
- A beneficial owner who directs a bare trustee to transfer legal title and the equitable interest together does not need separate writing. An interest not disposed of results.
- Why it matters
- It is a leading case on formalities and on automatic resulting trusts.
Words and Latin in this note
- Resulting trust
- A trust under which the beneficial interest goes back to the person who provided the property, because he is presumed not to have meant a gift, or because an express trust did not use up the whole interest. Open the 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.