Paul v Constance

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Paul v Constance
Court of Appeal of England and Wales
Full case name Paul v Constance
Date decided 8 July 1976
Citations [1977] 1 WLR 527 (CA)
Judges sitting Cairns LJ, Scarman LJ, Bridge LJ

Paul v Constance is an important case in English trust law. It sets out what will be sufficient to establish the first of the "three certainties" necessary for a trust (certainty of intention). It is necessary that a settlor's "words and actions ... show a clear intention to to dispose of property ... so that someone else acquires a beneficial interest."[1]

[edit] Facts

Mr Constance, deceased, set up a bank account in his own name. On many occasions he stated to his de facto partner Mrs Paul (the plaintiff), that "The money is as much yours as mine."[2]

Mr Constance was still legally married to Mrs Constance (the defendant). Mr Constance died intestate, and his assets including the account passed to the defendant.

[edit] Ratio decidendi

To establish a trust, there must be sufficient certainty of intention that the settlor is granting a beneficial interest to the beneficiary. This can be expressed orally, and no particular form of words or conduct are necessary.[3] The word 'trust' need not be used. However, an imperfect gift (as in Jones v Lock) does not show sufficient certainty of intention.

[edit] References

  1. ^ Paul v Constance [1977] 1 WLR 527 (CA)
  2. ^ Paul v Constance [1977] 1 WLR 527 (CA)
  3. ^ Paul v Constance [1977] 1 WLR 527, 530-531 (CA)


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