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Life with Equity and Trusts

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The traditional principles of law depict that if the trustee invests in unauthorized projects or puts the funds those who are not clarified to hold them, then a loss emanates from the process then the trustee is liable. In the case of Susan vs. Tessa and Vincent, Tessa and Vincent will be found liable for the loss of the money and it serves as a proof that the trustees are not capable of handling the tasks that were granted to them. Clough v Bond (1828) 3 My & Cr 490, 496 (Lord Cottenham LC) depicts that Susan stands in a winning position.

Both Tessa and Vincent have illustrated a breach of a duty of skill and care. John having bestowed the will on their hands as professionals the best thing they could have done is to demonstrate their professionalism. However, the trustees do not put into use the real purpose of the money they have in their hands. Susan and the children are in compromising situations since it is illustrated by the amount of money they are asking. Thus, according to Bristol and West Building Society v Mothew [1998] Ch 1 (CA) 17 (Millett LJ).

The trustees are liable for the breach of the trust endorsed to them; hence Susan will have to carry on with the legal mechanism to regain the lost money and control of the trust account. The liability of a fiduciary for neglect exhibited by the trustees is no separate actions of a liability. A law of general duty to act with care is broken in this case which means that Vincent and Tessa need to compensate the beneficiaries for the illegal undertakings.

According to the case of Henderson v Merrett Syndicates Ltd [1995], 2 AC 145 (HL) 205 (Lord Browne-Wilkinson) the plaintiff will stand a chance to win a case of negligence and breach of contract with is utterly depicted in this scenario. Following the judgment made in prior cases concerning breach of trust and equitable obligations, Susan needs to depict that there is a degree of negligence which to a large extent is illustratable. It is argued that joining up quite trust with the trustees in a breach of a trust would lead no complaints from the beneficiary.

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preview essay on Life with Equity and Trusts
  • Pages: 6 (1500 words)
  • Document Type: Essay
  • Subject: Law
  • Level: Undergraduate
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