Deck 13: Tracing and Actions Against Strangers to the Trust

Question 1

An action for tracing can be made in equity only.

Answer 1

False

Question 2

Is tracing a remedy or a claim in its own right?

Answer 2

No Answer.

Question 3

What three defences can a defendant subjected to a tracing process may forward?

Answer 3

No Answer.

Question 4

What is the difference between tracing and following?

Question 5

In which case does the ability to trace at common law come from

Question 6

What is the difference between tracing at common law and equity?

Question 7

Which case does the "first in first out" rule come from?

Question 8

When does the rule in Clayton's Case not apply?

Question 9

Is it possible for beneficiary to make a claim against a stranger to trust?

Question 10

Aside from an action against the trustee for breach of trust, how else can the beneficiary recover what they are owed?

Question 11

Name a situation where it may not be worthwhile for a beneficiary to bring an action against the trustee for breach of trust.

Question 12

Common law tracing involves the trustee pursuing the legal title to property which has found its way into the wrong hands.

Question 13

Equitable tracing offers someone who has benefitted from a fiduciary relationship (for example, a beneficiary) the ability to follow the equitable interest in property which has been misappropriated.

Question 14

Tracing is a claim against the recipient of the property.

Question 15

Tracing is dependant on principles of the law on unjust enrichment being met.

Question 16

Tracing may be undertaken against the wrongdoer or anyone who has knowingly acquired an interest in the trust property or knowingly assisted in the breach of trust.

Question 17

At common law, the remedy that tracing leads to is a restitutionary one.

Question 18

If tracing is pursued in equity, the main remedy that the claimant enjoys is a personal one against the recipient of the property.

Question 19

The common law will permit tracing to occur provided that the trust property remains clearly identifiable.

Question 20

In which case were the requirements of recipient liability established?