Fletcher v Fletcher
A covenant to pay money to trustees may itself be the subject of a completely constituted trust, so that a volunteer beneficiary can enforce it.
Facts
Ellis Fletcher covenanted with trustees that his executors would pay £60,000 to them, to be held on trust for his illegitimate sons. The deed was kept by him and was not known to the trustees or his sons until after his death. One of the sons claimed the money from the executors. The trustees did not wish to enforce the covenant, and the son was a volunteer.
Legal principle
Wigram V-C held that the son was entitled to the money. He held that the benefit of the covenant itself, which was a chose in action, was the subject of a completely constituted trust, and the trust had been constituted when the covenant was made. Since the trust was complete, the son could enforce it as a beneficiary, even though he was a volunteer, and the trustees could be required to sue on the covenant for his benefit.
Related cases on formalities and constitution of trusts
- Re Brooks' Settlement Trusts [1939] Ch 993
- Cannon v Hartley [1949] Ch 213
- Choithram (T) International SA v Pagarani [2001] 1 WLR 1
- Grey v IRC [1960] AC 1
- Hodgson v Marks [1971] Ch 892
- King v Dubrey [2015] EWCA Civ 581, [2016] Ch 221
- Mascall v Mascall (1984) 50 P & CR 119
- Milroy v Lord (1862) 4 De GF & J 264
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