Problem question Essay Example | Topics and Well Written Essays - 2000 words - 2

Problem question - Essay Example For instance, Gretel states that her friend Polly is to get her assortment of porcelain dolls, but ultimately, these dolls are to be shared among Gretel’s â€Å"nearest and dearest† according to her expectation, hence Polly is only a trustee for a trust comprised of Gretel’s nearest and dearest who are to receive the dolls. The class of beneficiaries in this case may be held to be unclear, because it may not be possible to draw up a complete list of all the beneficiaries4 and there may also be problems of administrative unworkability5 as far as this provision is concerned, due to the necessity to identify who would be considered as Gretel’s nearest and dearest from her perspective while she was making out her will. According to Hudson (2005), the manner in which equity functions is by mitigating the â€Å"rigor of the common law so that the letter of the law is not applied in such a strict way that it may cause injustice.†6 He states that equity applies the doctrine of acting in personam upon the conscience of the defendant; as a result, the major factor that courts are required to consider is whether or not an individual has acted in good conscience.7 Trust law is also based upon the equitable principles of acting on the basis of conscience, however where trusts develop in commercial transactions, certainty is a major requirement; as a result the doctrine of precedent has assumed importance in the application of equitable principles8. In Aurora’s capacity as a trustee of Gretel’s estate, she will be expected to administer the estate in accordance with the provisions of Gretel’s will, however when there is uncertainty, then the validity of the trust itself may be qu estioned. In the case of Westdeutsche Landesbank v Islington LBC9 Lord Browne Wilkinson also stated that equity is based upon the conscience of the person who acts as a trustee. On this basis, the trustee is required to carry out the specific purposes spelt