Equity & Trusts Coursework

Assessment:

Question:

“Non-lawyers might well be astonished at the legal difficulties to which a transaction as simple as giving property to a club or other unincorporated association gives rise. The problem is that analyses based on trusts do not work very well whereas a contractual analysis, which can usually be made to work seems unfair.” Wilson, S. Todd & Wilson's Textbook on Trusts , 2011, 10th edition Oxford: Oxford University Press, p 164

Explain how the courts have interpreted a gift to an unincorporated association and outline the problems associated with them.

Module:

Equity and Trust

ID number:

@00278633

Date of submission

Friday 16th August 2013

Word count:

2540 Words

Equity & Trusts Coursework

Introduction

Unincorporated association can be defined as an association where two or more people are bound together for mutual purpose(s), common duties and responsibilities between members, and rules and duties that governing who authorities the association operates and how they spend funds. Unincorporated associations do not have a separate legal entity, which is the prime cause that give arise to legal issues. Since, unincorporated association is not incorporated, different from a limited company it has no separate legal entity in itself; thus, has no rights in the manner that a business organisation can.

There are several legal issues associated with unincorporated associations; courts have different interpretation mainly because the court has to rule on issues associating to the legal nature of an unincorporated association on winding up of such associations and how courts interpreted gifts to the unincorporated associations. The purpose of this assignment is to address the issue of gifts to unincorporated association in the legal context, and discuss how the courts have interpreted a gift to an unincorporated association and sketch out these problems associated with them.

Discussion

An unincorporated association is just like a society or a club, and has its members work for a common purpose with common duties and rights arising; as a result of an agreement between members that form association's rules. The association might have no legal entity; therefore, is not able to possess a property. The beneficial ownership of the property indeed has the authority to determine how assets of association will be divided if the association get dissolved. In this context, two beneficial ownership theories concept of trust and contract are the basis of two beneficial ownership theories. Several apprehensions and conflicts have arisen in accordance with these two theories that are depended on distinct authority and principle. In unincorporated associations, ownership is usually by the association's officers. With the property possessed to under contractual obligations that form the association's rules or hold on trust for the members as the beneficiary.

Issues come out with the licit form that gifts to the association undertake. To leave property for the aim of a non-charitable association refers to traditionally held void in accordance to the beneficiary principle. On the other hand, there are few exception cases, Trust Deed of Re Denley are applicable to policy of “beneficiary principle,” where trust (non-charitable) found to be legally responsible for the good of ...