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Question: Nikolai, a wealthy émigré who was out of favour in his home country, settled permanently at an estate near Windsor. He employed a young nanny by the name of Candy. Having been smitten by Candy’s charms, Nikolai decided to make her a gift of all his shares in Fulchester United Football Club Ltd. In January, Nikolai signed the share transfer form and gave it, along with the share certificates, to his business adviser to arrange the transfer. Nikolai then told Candy that she was now the owner of the shares. The business adviser promptly lost the paperwork.

In February, Nikolai - who was becoming increasingly fearful of an assassination attempt on his life - summoned Candy. He said to her, ‘The key to my safe is hidden in my bedside copy of Master and Margarita. Open the safe and inside you will find my on-line banking password, PIN, card and card-reader. I want you to withdraw a decent sum for yourself if anything happens to me.’ Next day, Nikolai was found dead in his swimming pool.

Nikolai’s will appointed his wife, Olga, as executor and gave all his estate to her.

Advise Candy.

Answer: On the facts it is apparent that Nikolai intended to gift his shares in Fulchester United Football Club Ltd. to Candy and grant her a deathbed bequest of a decent sum of money. In equity, a gift will remain imperfect if the legal requirements for a valid transfer of property have not been complied with. Candy faces problems trying to enforce Nikolai’s promises due to the imperfect nature of the intended property transfers and her status as a volunteer. The legal starting pointing is Milroy v Lord which made it ‘tolerably clear’ that equity will not perfect an imperfect gift nor will an ineffective transfer be regarded as an effective declaration of trust through benevolent construction. Shares in Fulchester United Football Club Ltd. Section 270 (1) of the Companies Act 2006 ......(short extract)

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Details: - Mark: Not available | Course: Equity and Trust Law | Year: 1st | Words: 2123 | References: No | Date written: November, 2016 | Date submitted: April 19, 2017 | Coursework ID: 1018

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