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McPhail v Doulton (1971)

Last modified: Thu Feb 23 16:37:37 2006

[1970] AC 424 HL (also known as Re Baden's Trust Deeds). A settlement created a discretionary trust to be applied for the benefit of `...officers or employees or ex-employees' of a particular company, and their families. It was argued that such a trust should fail for insufficient CertaintyOfObjects, it not being possible to make a complete list of beneficiaries. The House overruled IRCVBroadwayCottagesTrust1955 on this point, holding that having different tests for certainty in mere powers and discretionary trusts was `...arbitrary, illogical, and embarassing...'. It therefore remitted the case back to the Chancery Division, to reconsider on the basis of a different test for certainty.

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