It is possible to draft the clause to include the power to apply capital for the maintenance of the testators pet. This clause may be better suited for the purpose: • Clause in will—pecuniary legacy to trustees to hold on trust for upkeep and maintenance of pet animals: Encyclopaedia of Forms and Precedents [203]: ‘1 I give free of tax the sum of £[amount] to my Trustees on trust to invest it in the exercise of the powers of investment given to them by this will or by law and to hold it or any part of it

This Q&A assumes that Party A stored vehicles for Party B. A was paid no money for this, it was done as a favour. A bailment arises when a 'bailee' takes voluntarily possession of goods belonging to another, gaining possessory rights and related obligations in relation to the goods, but not gaining ownership of the goods (or an immediate reversionary interest in the goods). Bailments typically arise as a result of a contract

Tournier v National Provincial established that it is an implied term of the contract between a banker and a customer that the banker will keep the customer's information confidential. This duty is subject to the following qualifications: • where disclosure is compelled by law • where there is a duty to the public to disclose • where

The bankruptcy estate The first point to note is that the bankruptcy estate comprises all property belonging to or vested in the bankrupt at the commencement of the bankruptcy, ie as at the date of the bankruptcy order. ‘Property’ is defined in section 436 of the Insolvency Act 1986 as including ‘money, goods, things in action, land and every description of property wherever situated and also obligations and every description of interest, whether present or future or vested or contingent, arising out of, or incidental to, property’. Property which the bankrupt holds on trust for any other person is not however comprised in the estate. Property comprised in a bankrupt's estate is so comprised subject to the rights of any other person other than the bankrupt, whether as a secured creditor

Overreaching is a statutory mechanism available to a mortgagee (among others) to confer title on the buyer free from charges and encumbrances ranking subsequent to the mortgagee’s security. Under section 104(1) of the Law of Property Act 1925 (LPA 1925), a sale by a mortgagee exercising its power of sale will override all rights over which the charge has priority. LPA 1925, s 104(1) provides: ‘A mortgagee exercising the power of sale conferred by this Act shall have power, by deed, to convey the property sold, for such estate and interest therein as he is by this Act authorised to sell or convey or may be the subject of the mortgage, freed from all estates, interests, and rights to which the mortgage has priority, but subject to all estates, interests,

Section 4(1)(g) of the Land Registration Act 2002 (LRA 2002) provides that the creation of a protected first legal mortgage over an unregistered freehold estate will trigger compulsory first registration of the freehold estate. A legal mortgage is protected if it takes effect on its creation as a mortgage to be protected by the deposit of documents relating to the legal estate. A first legal mortgage is one which, on its creation, ranks in priority ahead of any mortgage then affecting the legal estate. It is assumed that the legal charge in this scenario is a protected first legal mortgage. An application

The bankrupt’s estate Pursuant to section 283 of the Insolvency Act 1986 (IA 1986) all property (as so broadly defined) belonging to or vested in the bankrupt at the commencement of the bankruptcy forms part of the bankruptcy estate and will under IA 1986, s 306 vest automatically in the trustee in bankruptcy (trustee) immediately upon their appointment. Causes of action Property is defined very widely in IA 1986, s 436 and includes causes of action. Therefore, causes of action pursuable by an individual which have accrued before the commencement of their bankruptcy form part of their estate as items of property and vest in their trustee. This is whether or not the cause of action was prosecuted by way of a court claim prior to the bankruptcy. The exception to this is causes of action ‘where the damages are solely to be estimated by immediate reference to pain felt by the bankrupt

As this Q&A has not specified the power of attorney we have considered both ordinary powers of attorney and lasting powers of attorney (LPA) in our response. LPAs Section 10(2) of the Mental Capacity Act 2005 (MCA 2005) provides that an individual who is bankrupt may not be appointed as donee of an LPA in relation to the donor's property and affairs. An individual who is bankrupt may, however, be appointed as an attorney in relation to the donor's personal welfare. Whilst MCA 2005, s 10(2) disqualifies 'an individual who is bankrupt' from acting as

The bankruptcy estate and limitations on disposing of property comprised in the bankruptcy estate Until a bankruptcy is annulled, a bankrupt has no legal power to deal with any assets they owned or had an interest in prior to bankruptcy. This is because as soon as a bankruptcy order is made against an individual, all of their assets (subject to some statutory exceptions—see section 283(2) of the Insolvency Act 1986 (IA 1986)) form part of their bankruptcy estate and vest in either the official receiver (OR) or a trustee in bankruptcy as soon as they are appointed to administer the estate (IA 1986, s 306(1)). The bankrupt ceases to own or have power to deal with his former property legitimately even if he retains control or possession of that property. The definition of property

Restructuring & Insolvency analysis: On appeal, His Honour Judge Paul Matthews (sitting as a Judge of the High Court) held that it was not a procedural irregularity for the judge at first instance to go on and hear the bankruptcy petition, after he had dismissed an application to set aside an earlier order. The question of procedural irregularity is one of substance not of form. The judicial act of deciding what to hear, and when, is not hamstrung by the administrative act by the court staff of publishing a list of matters to be heard on a particular occasion. The court also reviewed the law on when a guarantee creates a debt in a liquidated sum, which was another of the six grounds of appeal. When acting for the creditor, consider whether the next hearing can be used to hear the petition. When acting for the debtor, raise any objections to hearing the petition at the time. Written by Robert Machell, barrister at Enterprise Chambers.

A bankruptcy petition may only be withdrawn with the permission of the court. Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, r 10.30(3) provides that no order can be made giving permission to withdraw the petition until the petition is heard (see Practice Note: Bankruptcy petitions—process

Restructuring & Insolvency analysis: The court allowed a bankruptcy petition to proceed despite the debtor having the benefit of a standard breathing space moratorium. The court held that, where a petition is afoot when a standard breathing space is entered into, the court’s discretion to allow it proceed is at large, rather than being constrained by the statutory restrictions which prevent enforcement action unless it can be shown that the debtor would not suffer detriment and the moratorium protections will not be undermined. However, in case this was wrong, the court went on to consider whether those statutory restrictions were met in the present case. Further, the court considered the test for abuse of purpose based on extraneous purpose. Written by Giselle McGowan, barrister at 9 Stone Buildings.