Trusts in commercial settings

Although the common law trust has historically been used as a vehicle to hold property for successive generations within a family, it has also long been a feature in many kinds of commercial arrangements.

English trust law is applicable to trusts used in commercial transactions, but its application is nuanced and adapted to the specific context of such arrangements. While the fundamental principles of equity underpinning traditional trusts are relevant, courts have recognised more and more that the detailed rules developed for traditional trusts cannot be applied wholesale to commercial trusts. A consequence of this change in attitude is that the courts may prioritise the terms of the underlying commercial contract over traditional equitable principles, so that the application of trust law is often tailored to the specific nature and purpose of the particular trust.

What is a trust?

A basic definition is a legal arrangement which involves a person (the ‘settlor’) transferring legal title to assets to another person or body (the ‘trustee’) to hold for the benefit of one or more persons (the ‘beneficiaries’), which may include the settlor. The terms of the trust are usually

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Representation orders in Public Trustee v Cooper applications (Cator v Thynn)

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