The Harrow and Healthy Hearts Country Club is in need of additional funds of $10,000 to build a swimming pool. An advert is placed in the local press seeking not only new members but also contributions from existing members and the general public. $5000 is received by cheques and cash as a result of the advert. Before any other fund can be obtained, the national authorities obtained permission to build a motor way running adjacent to the club. An alternative site can not be found. The club is an incorporated association and its members vote to close the club. Under the rules of the club, it is able to dissolve itself. The rules of the club make no provision for the distribution of its assets where it does dissolve itself.

Advise as to the distribution of the club's assets.

You may wish to use the following cases, among others, in your arguments:

Re Bucks Constabulary Widow's and Orphans Fund Friendly Society (1979)
Re Hobourn Aero Components Ltd v Air Raid Distress Fund (1946)
Re William Denby and Son Ltd v Sick and Benevolent Fund (1971)
Re Bucks Constabulary Widows' and Orphans' Fund Friendly Society (No 2)(1979)

Question 1:

Trusts may be divided based either on intention or operation of law. Trusts based on operation of law can be classified into two different categories. Using decided cases, explain the two categories of trusts based on operation of law.

Question 2:

The case McPhail v Doulton (1971) made an important distinction between a trust and a power put into trust. Using this case explain clearly this distinction.

Question 3:

The Judicature Acts 1873-1875 provided that where there is a conflict between equity and Common law, the former should prevail. However, during the Tinsley v Milligan case (1994), the House of Lords took the opposite view. Discuss why the House of Lords took the opposite view. Use the case to illustrate your points.