LAW4170 Study Guide - Final Guide: Pari Passu, Owen Dixon, Secured Creditor
Document Summary
Make sure you understand how the law has changed since this answer was written. For clause 2 to be valid, it must create an express trust that needs to meet the 3 certainties and statutory formalities. Intention: it is assumed intention is met for the trust ( properly established ). Clause 2 is not the creation of the trust (requiring certainty of intention) but how the trust is to be administered. Subject: as per reasoning above, the clause does not require certainty of subject. If it does, however, this would be met as income is identifiable and ascertainable. Constitution is not relevant trust by declaration. Object this is where clause 2 is relevant, as it establishes how the money received is to be distributed. A valid express trust requires certainty of object so the trustee knows who to account to and court knows who has standing grant mr in.
