GDL Elite
REVISION MANUAL 2013-14
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GDL Elite
GDL Elite Revision Manual 2013-2014
Copyright © 2013-14 GDL Elite. All rights reserved.
First paperback edition printed February 2014 in the United Kingdom
A catalogue record for this book is available from the British Library.
ISBN 978-0-9928338-0-0
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responsibility for errors or omissions. Neither is any liability assumed for damages resulting from the use of this
information contained herein.
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GDL Elite
REVISION MANUAL 2013-2014
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Contents
1. Contract Law .............................................................................................................................................................. 1
1.1 Agreement and Intention to Create Legal Relations .............................................................................................................................. 1
1.2 Consideration, Promissory Estoppel and Duress................................................................................................................................... 7
1.3 Terms and Exemption Clauses ............................................................................................................................................................ 10
1.4 Mistake ................................................................................................................................................................................................ 18
1.5 Misrepresentation ................................................................................................................................................................................ 20
1.6 Privity of Contract ................................................................................................................................................................................ 25
1.7 Discharge, Breach and Frustration ...................................................................................................................................................... 27
1.8 Remedies............................................................................................................................................................................................. 32
2. European Union Law ............................................................................................................................................... 37
2.1 Direct Effect, Indirect Effect and State Liability .................................................................................................................................... 39
2.2 Sex Discrimination ............................................................................................................................................................................... 42
2.3 Competition Law 1 ............................................................................................................................................................................... 45
2.4 Competition Law 2 ............................................................................................................................................................................... 48
2.5 Free Movement of Goods 1 ................................................................................................................................................................. 51
2.6 Free Movement of Goods 2 ................................................................................................................................................................. 53
2.7 Free Movement of Persons ................................................................................................................................................................. 55
2.8 Freedom to Provide and Receive Services ......................................................................................................................................... 58
2.9 Freedom of Establishment ................................................................................................................................................................... 60
3. Tort Law .................................................................................................................................................................... 65
3.1 Trespass to the Person ....................................................................................................................................................................... 67
3.2 Land Torts ........................................................................................................................................................................................... 69
3.3 Defamation .......................................................................................................................................................................................... 77
3.4 General Negligence ............................................................................................................................................................................. 85
3.5 Vicarious Liability ................................................................................................................................................................................. 95
3.6 Employer’s Liability .............................................................................................................................................................................. 98
3.7 Professional and Clinical Negligence................................................................................................................................................. 100
3.8 Occupier’s Liability ............................................................................................................................................................................. 103
3.9 Product Liability ................................................................................................................................................................................. 108
4. Criminal Law........................................................................................................................................................... 115
4.1 Basic Principles of Criminal Law ....................................................................................................................................................... 117
4.2 Murder ............................................................................................................................................................................................... 121
4.3 Involuntary Manslaughter ................................................................................................................................................................... 125
4.4 Non-Fatal Offences Against the Person ............................................................................................................................................ 127
4.5 Sexual Offences ................................................................................................................................................................................ 133
4.6 Drug Offences.................................................................................................................................................................................... 138
4.7 Theft .................................................................................................................................................................................................. 144
4.8 Burglary ............................................................................................................................................................................................. 148
4.9 Robbery ............................................................................................................................................................................................. 151
4.10 Making off without Payment............................................................................................................................................................. 153
4.11 Fraud ............................................................................................................................................................................................... 154
4.12 Blackmail ......................................................................................................................................................................................... 157
4.13 Criminal Damage ............................................................................................................................................................................. 159
4.14 Inchoate Offences ............................................................................................................................................................................ 162
4.15 General Defences ............................................................................................................................................................................ 165
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5. Land Law ................................................................................................................................................................ 173
5.1 Basic Principles of Land Law............................................................................................................................................................. 175
5.2 Registered and Unregistered Land .................................................................................................................................................... 177
5.3 Proprietary Estoppel .......................................................................................................................................................................... 183
5.4 Co-ownership ..................................................................................................................................................................................... 186
5.5 Leases and Licences ......................................................................................................................................................................... 193
5.6 Leasehold Covenants ........................................................................................................................................................................ 197
5.7 Mortgages .......................................................................................................................................................................................... 203
5.8 Easements ......................................................................................................................................................................................... 209
5.9 Freehold Covenants........................................................................................................................................................................... 216
6. Equity and Trusts ................................................................................................................................................... 223
6.1 The Three Certainties ........................................................................................................................................................................ 225
6.2 Constitution ........................................................................................................................................................................................ 228
6.3 Formalities ......................................................................................................................................................................................... 231
6.4 Implied Trusts of the Home ............................................................................................................................................................... 233
6.5 Private Purpose Trusts ...................................................................................................................................................................... 237
6.6 Secret Trusts ..................................................................................................................................................................................... 239
6.7 Unincorporated Associations ............................................................................................................................................................. 243
6.8 Fiduciary Duties and Breach of Trust ................................................................................................................................................ 247
6.9 Maintenance and Advancement ........................................................................................................................................................ 253
6.10 Tracing and Liability of Strangers .................................................................................................................................................... 255
6.11 Equitable Remedies ......................................................................................................................................................................... 261
7. Constitutional and Administrative Law ................................................................................................................ 267
7.1 Human Rights: Problem Questions.................................................................................................................................................... 269
7.2 Judicial Review: Preliminary Issues ................................................................................................................................................... 278
7.2.1 Procedural Impropriety .................................................................................................................................................................... 280
7.2.2 Illegality ........................................................................................................................................................................................... 283
7.2.3 Legitimate Expectation.................................................................................................................................................................... 285
7.2.4 Unreasonableness .......................................................................................................................................................................... 287
7.3 Separation of Powers ........................................................................................................................................................................ 289
7.4 Parliamentary Sovereignty ................................................................................................................................................................. 292
7.5 UK Constitution .................................................................................................................................................................................. 295
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1.1 AGREEMENT AND INTENTION TO CREATE LEGAL RELATIONS
1. INTRODUCTION
1) Potential contracts
- Identify all potential contracts e.g.
o Albert v John – contract for car
o James v John – contract for car
- In order for agreement to exist there must be a valid offer and acceptance
2. OFFER: Determine whether a valid offer has been made
1) Offer
- A valid offer must be:
o (1) Clear & Certain1 (Storer v Manchester CC cf. Gibson v Manchester CC2)
o (2) Communicated to the offeree (Taylor v Laird), either
(1) In writing,
(2) Orally, or
(3) By conduct
o (3) Open i.e. not lapsed, revoked or rejected (see below)
- Whether an offer has been made is judged objectively: “the alleged offeror will be bound if his words or conduct are
such as to induce a reasonable person to believe that he intends to be bound, even though he in fact has no such
intention” (Smith v Hughes)
- The following potential issues must also be considered (if applicable):
o Invitations to Treat
o Option Contracts
o Counter-offers and Requests for Further Information
o Termination
2) Invitations to Treat
- An offer must be distinguished from an invitation to treat
o Offer: “An expression of willingness to contract on specified terms, made with the intention that it is to
become legally binding as soon as it is accepted by the person to whom it is addressed” (Treitel)
o Invitation to treat: An expression of willingness to enter into negotiations
1) Advertisements
- General Rule: Advertisements constitute invitations to treat (Partridge v Crittenden)
o Exception 1: The manufacturer’s exception (Grainger v Gough, obiter per Lord Herschell). If the offeror
manufactures the goods on offer (i.e. the goods are in large supply), his advertisement may constitute an
offer3
o Exception 2: Unilateral offers4 (Carlill v Carbolic Smoke Ball Co5; Lefkowitz v Great Minneapolis Surplus
Store). With a unilateral offer, acceptance may occur through performance of the offer’s prescribed act
2) Display of Goods
- General Rule: A display of goods constitutes an invitation to treat6 (Fisher
v Bell)
o The offer is made by the presentation of the goods at the till7 (Pharmaceutical Society v Boots)
o Acceptance occurs when the cashier accepts the offer
1
2
3
4
Phrases such as “£1,000 or nearest offer”, “a price to be determined” or “a car for sale” are not sufficiently clear and certain
Tentative phrases are uncertain e.g. the wording “will” (Storer) was held to be sufficient to meet the clear and certain requirement, whereas “may” (Gibson) was not
E.g. brochures and price lists
The unilateral offer must be sufficiently certain and show an intention to be bound. Note the distinction between bilateral and unilateral contracts: in a bilateral
contract, both parties make promises; in a unilateral contract, only one party makes a promise. There are two aspects to a unilateral offer: (i) an express offer to
reward performance of the prescribed act and (ii) an implied offer not to revoke the offer once the offeree commences performance
5
C.f. Lefkowitz v Great Minneapolis Surplus Store: in order to accept the offer, the offeree had to be the first to arrive with $1
6
Even if the shop actually expressly designates that the goods are “on offer” (Fisher v Bell)
7
Not when placed in a shopping basket (for instance). N.b. the exact point when the offer is accepted is unclear. It has been suggested that it occurs when the items
are scanned into the till. However, it does not occur when the cash is accepted – payment is merely fulfilment of the contract
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3) Auctions
- General Rule: An auctioneer’s request for bids represents an invitation to treat. An offer is made when the bidder
places a bid, which the auctioneer is free to reject or accept. Acceptance occurs at the fall of the auctioneer’s
hammer. An offer can be withdrawn at any time before acceptance (Payne v Cave)
o Exception 1: Auctions without reserve. Here a unilateral offer is made by the auctioneer when he
promises that the auction will be without reserve. The highest bidder accepts this offer when they make their
bid (Warlow v Harrison; Barry v Davies)
o If the auctioneer subsequently refuses to sell to the highest bidder they will be in breach of the unilateral
contract and can be sued for damages for the value of the goods being auctioned (Barry v Davies). Note that
the bidder cannot sue for the goods themselves as they are part of a bilateral contract for sale which is
independent of the unilateral contract
4) Tenders
- General Rule: Tenders represent invitations to treat (Spencer v Harding)
o Exception 1: where the offeror makes an express undertaking to accept the most competitive bid8 (Harvela
Investments v Royal Trust Co)
o Offers submitted according to the requirements of a tender must be considered (Blackpool & Fylde Aero
Club v Blackpool BC)
3) Option Contracts
- Where the offeror agrees to keep an offer open for a period of time in return for valid consideration from the offeree, a
separate9 (“option”) contract will be created. If the offeror revokes his offer during this period he will breach this option
contract (Dickinson v Dodd; Routledge v Grant)
- An option contract must meet the same requirements as any other contract to be valid i.e. there must be valid
agreement, consideration and intention to create legal relations
4) Counter-offers and Requests for Further Information
A counter offer should be distinguished from a request for further information:
- (1) Counter-offer:
o Definition: an attempt to accept an offer on new (different) terms by changing a key term in the offer10 (Hyde
v Wrench)
o Effect: the counter-offer kills off the original offer and itself becomes capable of acceptance
o Note the “Battle of the forms”: where multiple counter-offers exist, the last counter-offer to be accepted will
prevail (Butler Machine Tool v Ex Cell O)
- (2) Request for Further Information
o Definition: an enquiry expressed in interrogatory language relating to ancillary aspects of an offer
o Effect: a request for further information has no effect on the original offer, which remains open and capable
of acceptance (Stevenson Jacques v Mclean)
5) Termination
- An offer may be terminated through:
1) Rejection,
2) Revocation, or
3) Lapse
1) Rejection
- Rejection of an offer can occur by the offeree making an:
o (1) outright rejection of the offer, or
o (2) making a counter offer which is unaccepted by the original offeror
A request for information will not constitute a rejection of the offer
2) Revocation
- The rules on revocation of an offer vary depending on whether the offer is bilateral or unilateral:
o (1) Bilateral Offers
Revocation can occur at any time before acceptance (Payne v Cave)
Revocation must be communicated11 (Byrne v Van Tienhoven)
• Revocation can be
communicated through a third party12 (Dickinson v Dodds) but note
13
Treitel’s criticism
8
9
An undertaking to accept the most competitive bid creates a unilateral offer to enter into a contract with the winning bidder
N.b. only the option contract will be breached by early revocation by the offeror, and the offeree will only be able to sue for damages for breach of the option, not for
the
main contract (as the main contract has not been formed yet)
10
E.g.
the price
11
How the revocation is communicated is irrelevant as long as the offeror’s clear intention to revoke the offer has been demonstrated (through words or conduct) and
the offeree receives notice of this intention
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o (2) Unilateral Offers
General Rule: revocation can be communicated at any time before complete performance (GNR v
Witham)
• Exception 1: the offeror cannot withdraw the offer once the offeree has begun
performance (Errington v Errington & Woods) and cannot prevent the offeree from
completing that performance (Daulia v Four Milbank Nominees, per Goff LJ)
• Equal notoriety rule: the revocation must be given the same notoriety as the original offer
(Shuey v USA)
3) Lapse
- Lapse can occur through:
o (1) The Passage of Time (Ramsgate Victoria Hotel v Montefiore). The rules vary depending on whether the
offer has prescribed a period for acceptance or not:
(a) Prescribed period: lapse will occur if acceptance does not take place within the offeror’s
prescribed period
(b) No prescribed period: lapse will occur if acceptance is not made within a “reasonable time”
• What constitutes a “reasonable” time will depend on the circumstances
o (2) Death
(a) Death of the Offeror (Bradbury v Morgan)
• The offer will lapse if the offeree is notified/ aware of the offeror’s death before
acceptance
(b) Death of the Offeree
• After the offeree’s death, the offeree’s representatives cannot accept the offer (Duff’s
Executors’ Case; Kennedy v Thomassen)
o (3) Non-fulfilment of a condition
An offer will lapse where the offeree fails to comply with a condition attached to the offer by the
offeror
Conditions may be impliedly attached to offers in certain circumstances (Financings v Stimson14)
3. ACCEPTANCE: Determine whether a valid acceptance has occurred
1) Acceptance
- Acceptance must be:
o A mirror image of the16offer15 (Hyde v Wrench)
o Made by the offeree (Boulton v Jones)
o In response to/ with knowledge of the offer (R v Clarke)
Knowledge of the offer need not exist initially as long as it exists at some point before acceptance
(Gibbons v Proctor)
In reward cases, unless stated otherwise, only the person to first give information is entitled to the
reward (Lancaster v Walsh)
o Acceptance must be communicated (Felthouse v Bindley)
Acceptance may be communicated via an authorised third party (Powell v Lee)
Acceptance may be by conduct (Taylor v Allon; Intense Investments v Development Ventures)
Exception 1: Unilateral offers. Here the communication requirement is waived or implied by the
offeree’s performance of the prescribed act (Carlill v Carbolic Smoke Ball Co)
Exception 2: The Postal Rule (Adams v Lindsell) (see below)
Exception 3: The failure of communication is due to the fault of the offeror17 (Entores v Miles Far
East Co; The Brimnes)
o The offeree’s motive for acceptance is irrelevant (Williams v Carwardine)
(CONTINUED IN FULL VERSION)
12
The issue will be whether the third party demonstrates the offeror’s clear intention to revoke the offer. If the third party communicates anything less to the offeree
(e.g.
that the offeror has made an offer to someone else) this will likely constitute insufficient evidence of the offeror’s intention to revoke the offer
13
Treitel argues that revocation should only be possible by the offeror, not by a third party, because otherwise an unfair burden is placed on the offeree to determine
whether the third party communicating the revocation on behalf of the offeror is reliable or not: “Certainty would be promoted if the rule were that withdrawal must be
communicated by the offeror, as well as to the offeree.” Other commentators, such as Jill Poole, have argued that the question is whether the “third party ought
reasonably
to be believed”
14
Financings v Stimson: an implied term was attached to an offer that a car would be kept in the same condition until acceptance
15
i.e. acceptance must be unqualified and correspond precisely with the offer’s terms. If the acceptance is qualified in any way, it will be invalid
16
You cannot accept an offer made to someone else
17
i.e. it is the offeror’s fault that acceptance is not communicated e.g. he fails to check his fax messages or his computer is off
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5.9 FREEHOLD COVENANTS
1. INTRODUCTION
Definition: a covenant is a promise contained in a deed (Dano v Earl of Cadogan)
1) Potential claims
- (1) Identify the parties and determine
their status e.g.
o Original covenantor18 (James) – successor in title (Lucy)
o Original covenantee (Marcus) – successor in title (Alfred)
- (2) State the issues e.g. Alfred - potential breach of covenant by failing to pay for maintenance of the lift
- (3) State the formalities for creating a freehold covenant (i.e. in writing, signed by the covenantor (s.53(1)(a) LPA 1925))
and that these are presumed to have been complied with
2. BURDEN IN EQUITY: Determine whether the burden of the covenant has passed in equity
It should first be determined whether the burden has passed in equity because:
- (1) at common law the burden does not pass (Austerberry v Oldham; Rhone v Steven), and
- (2) equitable remedies are preferable as injunctions are available
There are four conditions which must be met for the burden of a covenant to pass in equity (Tulk v Moxhay):
1) The covenant must be negative
2) The covenant must accommodate the dominant tenement
3) The original parties must have intended that the burden should bind successors
4) The person against whom the covenant is being enforced must have notice of the covenant
1) The covenant must be negative in substance
- Test: does compliance with the covenant require that money is expended?19 (Haywood v Brunswick)
o If yes: it is a positive covenant
o If no: it is a negative covenant
- Where a covenant contains both positive and negative obligations, one of two approaches may be taken:
o (1) Severance of the covenant into its negative and positive obligations (Shepherd Homes v Sandham)
In order to sever the covenant, the obligations must be distinct and separable
The burden of the negative obligations will pass, but the burden of the positive obligations will not
o (2) The covenant will be determined to be either substantially positive or substantially negative with
(respectively) a mere negative or positive condition attached (Powell v Hemsley)
The burden will pass if the covenant is substantially negative, but not if it is substantially positive
2) The covenant must accommodate the dominant tenement
There are three requirements for the covenant to accommodate the dominant tenement:
1) The covenantees must have an interest in land (London CC v Allen)
- The original covenantee must possess an interest in land on the date when the covenant is granted
- The successive covenantee must possess an interest in land at the time when the covenant is enforced
2) The covenant must touch and concern the dominant land (P&A Swift Investments v Combined English Stores, per Lord
Oliver)
- “Touch and concern” requires that the covenant benefits the dominant land itself by affecting its value, nature, quality
or use and not simply benefit a particular owner purely in their personal capacity
o Note that a covenant may benefit an individual owner
personally, as long as it benefits the land to some
extent (Newton Abbot v Williamson & Treadgold20)
3) The servient and dominant land must be sufficiently proximate (Bailey v Stephens)
- This requires that the dominant land is close enough to the servient land in order to benefit from the covenant
18
Note the terminology: (1) covenantor: the person who made and bears the burden of the covenant (2) covenantee: the person who enjoys the benefit of the
covenant
(3) dominant land: the land enjoying the benefit of the covenant (4) servient land: the land which bears the burden of the covenant
19
This is sometimes referred to as the “hand in pocket” test
20
Newton Abbot v Williamsons & Treadgold: here the covenantee was an ironmonger and the covenantor promised not to use his premises as an ironmonger. The
covenant was permitted because it benefited the use and value of the land by preventing competition, even though it also benefited the covenantee in his personal
capacity
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3) It must have been the intention of the original parties that the burden should run
- An intention that the burden should run may demonstrated:
o Expressly, using express words in the covenant, and (if not expressly)
o Impliedly, by s.79 LPA 1925
s.79 will apply unless the parties have expressly excluded its application (Morrells v Oxford UFC)
4) Notice
A covenant will only bind the person buying the servient land if that person has notice of the covenant. The requirements for
notice depend on whether the land is registered or unregistered:
- Registered Land
o Entering a charge on the Charges Register of servient land constitutes notice (s.32 LRA 2002)
o If no notice is entered, the purchaser will not be bound if he is a purchaser for valuable consideration
(s.29(1) LRA 2002)
o Any person who acquires the freehold who is not a purchaser for valuable consideration will be bound by the
restrictive covenant if it constitutes an overriding interest. The restrictive covenant will be overriding if the
person with the restrictive covenant is in actual occupation of the land (Schedule 3 Paragraph 2 LRA 2002)
o A donee or volunteer will be bound by a restrictive covenant regardless of whether it is entered on the
Charges Register or not
- Unregistered Land21
o (1) Restrictive covenants granted on or after 1st January 1926
Registration of the restrictive covenant as a Class D(ii) land charge on the land charges register
(s.2(5)(ii) LCA 1972) constitutes notice and will bind all purchasers (s.198 LPA 1925)
If not registered, the restrictive covenant will bind anyone who is not a purchaser of a legal estate
for money or money’s worth (s.4(6) LCA)
o (2) Restrictive covenants granted before 1st January 1926
The doctrine of notice applies (see 5.2 REGISTERED AND UNREGISTERED LAND for full
details):
• (a) actual, constructive or imputed notice of the easement will bind a purchaser, but
• (b) a donee will be bound regardless of notice
3. BENEFIT IN EQUITY: Determine whether the benefit of the covenant has passed in equity
In order for a covenant to be enforceable, the benefit as well as the burden must be shown to pass (Miles v Easter; Re Union
of London and Smith’s Bank)
In order for the benefit to pass in equity, the covenant must:
1) Touch and concern the land
o The covenant must not be purely personal to (or merely benefit) a particular owner but must benefit the land
itself by affecting its value, nature, quality or use (P&A Swift Investments v Combined English Stores, per
Lord Oliver)
2) Have passed in one of the following three ways (Renals v Cowlishaw, per Sir Charles Hall VC):
1) Annexation
2) Assignment
3) Scheme of development
1) Annexation
- The benefit of the covenant must be permanently attached to the dominant land at the point when the covenant is
created
o Annexation of the benefit to the whole of the dominant land constitutes annexation to every part of the land
(Federated Homes v Mill Lodge Properties)
o The size of the dominant land is irrelevant (Wrotham Park Estate v Parkside Homes; Marten v Flight
Refuelling)
- There are three methods of annexation:
1) Express
2) Implied
3) Statutory
(CONTINUED IN FULL VERSION)
21
The same principles of enforcement in unregistered land apply to restrictive covenants in a lease
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6.7 UNINCORPORATED ASSOCIATIONS
General Principles
Rule against perpetuities (“rule against remoteness of vesting”): future interests (i.e. interests not taking immediate effect) must
vest within the perpetuity period
- The rule requires that there exists a point in time when the class of beneficiaries becomes closed and
fixed (as only at
that point can the trust be closed and legal title be transferred from the trustees to the beneficiaries22)
Perpetuity periods
The perpetuity period varies depending on when the will was executed:
- (1) Wills executed on or after April 6 2010
o The perpetuity period is automatically fixed at 125 years (s.5 Perpetuities and Accumulations Act 2009)
- (2) Wills executed before April 6 2010
o The Perpetuity period is automatically fixed at 80 years (s.1 Perpetuities and Accumulations Act 1964), or
o (where no perpetuity period is specified) 21 years after the date of death of the last life in being
1. INTRODUCTION
Definition: “an association of persons bound together by identifiable rules and having an identifiable membership” (Re
Koeppler’s Will Trust, per Slade LJ)
Unincorporated associations are problematic because they have no separate legal personality and are therefore unable to own
property or contract as an independent entity
1) Potential gifts/ trusts
- Determine the potential gifts/ trust to the unincorporated association e.g. Charles – £50,000 to the scouts club
2. INTERPRETATION: Determine whether an interpretation can be applied (if any)
The court has devised a number of interpretations to effectively permit gifts to unincorporated associations. The court will
attempt to choose the interpretation that best fits the testator/ donor’s intentions for the gift (Re Recher, per Brightman J):
1) Ordinary purpose trust
2) Gift to members absolutely
3) Gift to members subject to contract (the “Contractual Analysis”)
4) Trust for present and future members
5) Re Denley purpose trust
1) Ordinary purpose trust
- An ordinary purpose trust is likely to fail for one or more of the following reasons:
o (1) Beneficiary principle
The beneficiaries of the trust must be ascertainable
o (2) Perpetuity
The trust may contravene the rule against inalienability
o (3) Uncertainty
The purpose of the trust may be too uncertain
- The trust must also be for the direct benefit of the members, not merely for a non-charitable purpose relating to the
trust (Leahy v AG for New South Wales, per Viscount Simonds) otherwise it will be void
o The members must ultimately obtain the trust property themselves (Philippe v Cameron)
22
The reason for this is that if the class of beneficiaries never became closed and fixed, the trustees would be required to retain the trust property forever, which
would defeat the whole purpose of the trust as the beneficiaries would never receive their beneficial interest
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2) Outright Gift to present members absolutely (Leahy v AG for New South Wales)
- The “outright gift” interpretation interprets the testator’s gift as divided into equal shares among the individual members
of the association
- The outright gift only applies in limited circumstances: usually where (Re Grant, per Vinelott LJ):
o (1) the testator/ donor has not directed how the gift should be used (Cocks v Manners), and
o (2) the group of beneficiaries is small (Re Grant, per Vinelott J)
Ideally, the club name should only be functioning as a convenient label for a small number of
individuals whom the testator wishes to benefit
- The current members of the club each receive equal shares of the gift (each member taking an immediate individual
share)
- Beneficiary principle
o The beneficiary principle is complied with as the current members are all ascertainable
- Perpetuity
o The perpetuity requirements are complied with as the property vests in the members immediately (i.e. the
beneficiaries are free to treat the property as they wish)
- Potential issues
o Because each of the members receives a share of the gift absolutely, there may be issues with the
construction due to the following (Leahy v AG for New South Wales):
(1) The gift’s wording
• The construction must take affect as a gift. This will contradict any wording which
indicated that the testator indicated a trust. In addition, the testator is unable to:
o (1) retain any control over the property, or
o (2) ensure the property is used according to his intentions (or even for the
purposes of the association)
(2) The nature of the property
• It is unusual for a testator to have intended a gift to an association to be divided into small
shares between every beneficiary
(3) The nature of the beneficiaries
• It will be difficult to use the “outright gift” interpretation where the beneficiaries are:
o (a) Numerous, and/ or
o (b) Diversely located
3) Gift to members subject to contract (The “contractual anaylsis”) (Re Recher)
- The “contractual analysis” interprets the gift as a gift to the members of the club subject to their duties and
obligations to the club
- The contractual analysis is the most common interpretation (Artistic Upholstery v Art Forma; Hanchett-Stamford v HM
Attorney General)
- The interpretation can only apply where:
o (a) the testator intends a gift (Leahy v AG for New South Wales), and/or
o (b) the association possesses identifiable rules, and
o (c) the association still exists (Re Recher)
- It is irrelevant who the club benefits (i.e. its members or someone else) (Re Recher)
- Beneficiary principle
o The beneficiary principle is satisfied as all members are identifiable at any particular given point in time
The fact that the composition of the members may change over time is irrelevant
- Perpetuity
o The perpetuity rules are satisfied as long as the members are free to deal with the property (i.e. they must
be able to divide up the property themselves at any time)
- Control
o The association’s rules must permit its members to have a sufficient degree of control over the assets
(“internal control”) to the extent that they are free to deal with the property, including both its capital and
income, as they wish. This includes the right of the members, as a group, to decide to use the gift for a
purpose other than that intended by the testator
o There may be some element of external control over the association (Re Horley Town) but it must be
minimal and not in any way restrict the members’ internal control (Re Grant)
(CONTINUED IN FULL VERSION)
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7.4 PARLIAMENTARY SOVEREIGNTY
ESSAY PLAN: To what extent is Parliament Sovereign?
1. INTRODUCTION
-
-
The traditional doctrine of parliamentary sovereignty was described by A V Dicey in Introduction to the Study of the Law
of the Constitution (1885) and encompasses three principles:
o 1) Parliament is the supreme-law making body
o 2) No Parliament may bind a successor or be bound by a predecessor
o 3) No person or body has the power to override legislation passed by Parliament
The Doctrine of Parliamentary Sovereignty still applies today though it has been substantially modified and limited,
particularly by Human Rights Act 1998, European Union law, Devolution and the Judiciary
There is a distinction to be drawn between Parliament’s theoretical legal power and its practical limitations
2. PARAGRAPH 1: Parliament is the supreme-law making body
1) Original Doctrine
- Parliament is (theoretically) the supreme law making body, with the power to legislate:
o (1) both prospectively and retrospectively
Parliament can pass retrospective legislation
• E.g. the War Damage Act 1965 overriding the court’s decision in Burmah Oil v Lord
Advocate
o (2) on any matter it chooses
Parliament can legislate in contravention of human rights provided that it uses express words to
do so (R v SoS HD ex p Simms, per Lord Hoffman)
o (3) beyond its jurisdiction
Parliament can pass legislation which has effect beyond the jurisdiction of the UK
• Parliament extended British territorial waters beyond recognised international limits
(Mortensen v Peters)
• Parliamentary legislation is superior to international treaty obligations (Cheney v Conn)
though note the European Communities Act 1972
2) Challenges
- The original doctrine has been challenged by the following:
o (1) Political reality
There are political limits what legislation Parliament may pass or repeal
o (2) European Union Legislation
Community law is directly effective in the UK (s.2(1) European Communities Act 1972) meaning
that Parliament must give effect to legislation that did not originate in the UK
o (3) Devolution
Despite the fact that under s.28(7) of the Scotland Act 1998 (the Westminster) Parliament retains
the power to “make laws for Scotland” (and therefore Parliamentary Sovereignty), Scotland has
been given power to legislate on a range of matters including (non-exhaustive):
• Education and training
• Health
• Environment
• Tourism, sport and heritage
• Justice and policing
• Law
The Westminster Parliament retains the right to legislate on (non-exhaustive):
• Foreign Affairs
• Defence
• Immigration
• Welfare
• Energy
Legally the power of Westminster has not been reduced though in reality it would be almost
impossible to regain the powers delegated to the Scottish Parliament
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3. PARAGRAPH 2: No Parliament may bind a successor or be bound by a predecessor
1) Original Doctrine
- Parliament is exceptional 23as the supreme law making body and cannot bind itself (cf. AG for New South Wales v
Trethowan (Privy Council) ; Harris v Minister of the Interior), being free to repeal legislation through either:
o (1) Express Repeal, or
This occurs where new legislation expressly states that it is repealing previous legislation
o (2) Implied Repeal
New legislation will automatically impliedly repeal any conflicting provisions in previous legislation
without any need to refer to them, regardless of whether the previous legislation states that it may
not be repealed (Vauxhall Estates v Liverpool Corporation; Ellen Street Estates v Minister of
Health24)
2) Challenges
- The principle of implied repeal has been challenged by the notion of “partial entrenchment” and “constitutional
statutes”
o (1) Certain statutes have arguably acquired a ‘constitutional’ status and cannot be impliedly repealed
(Thoburn v Sunderland CC, per Laws LJ):
Magna Carta 1215
Bill of Rights 1689
Act of Union 1707
• Arguably, as the Acts of Union and Westminster Parliament were created by the
Parliament of England and the Parliament of Scotland (which now no longer exist), the
Westminster Parliament cannot repeal the Acts of Union as it constitutes a higher form of
law (McCormick v Lord Advocate, obiter per Lord Cooper; Gibson v Lord Advocate, per
Lord Keith)
• The reality is that the Acts of Union could likely be repealed if necessary (cf. the Act of
Union (Ireland) 1800 which was successfully repealed)
Reform Acts 1832, 1867, 1884
European Communities Act 1972
Human Rights Act 1998
Scotland Act 1998
o (2) No Act of Parliament can extend to a Dominion (former colony) without the request and consent of that
Dominion (s.4 Statute of Westminster 1931)
Parliament has the right to repeal the Statute of Westminster (Manuel v AG, per Megarry VC)
though in practice it would be almost impossible (Blackburn v AG, per Lord Denning)
o (3) Judicial Comments
There is apparently no reason why Parliament should not be able to redefine itself both “upwards”
and “downwards” (i.e be able to bind future parliaments) (R (Jackson) v AG, per Baroness Hale)
4. PARAGRAPH 3: No person or body has the power to override legislation passed by Parliament
1) Original Doctrine
- Traditionally no person or body may review or override an Act passed by Parliament with respect to either:
o (1) the procedure in which it is passed, or
o (2) the substance of the Act
-
(1) Procedure
o Under the ‘enrolled bill rule’, the manner in which Parliament passes its legislation cannot be reviewed as
the court assumes that an Act which has been passed was passed using the correct procedure (Pickin v
British Railways Board)
o The rule even
applies where Parliament breaches its own rules in passing the legislation (Edinburgh v
Wauchope25)
(CONTINUED IN FULL VERSION)
23
AG for New South Wales v Trethowan: the New South Wales Legislature which was bound by the procedural requirements of s.7 Constitution (Legislative Council)
Amendment
Act 1929
24
Vauxhall Estates v Liverpool Corporation; Ellen Street Estates v Minister of Health: a less generous compensation scheme for compulsory purchase in the Housing
Act 1925 took priority over the previously more generous compensation scheme in the Acquisition of Land Act 1919 without referring to it and despite statements in
the 1919 legislation that the 1919 legislation could not be impliedly repealed
25
Edinburgh v Wauchope: the failure of Parliament to provide sufficient notice of legislation in accordance with Parliamentary procedure could not be challenged
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