Penalties on car rental agreements

Examines the Cambridge County Court ruling in Volkswagen Financial Services (UK) Ltd v Ramage on whether a clause in a car hire contract which allowed the finance company, upon repudiation of the contract after the hirer fell into arrears, to claim compensation equivalent to the lost future rental payments was unenforceable as a penalty clause, rather than being a reasonable pre-estimate of actual loss. Refers to case law including the Court of Appeal ruling in Anglo Auto Finance Co v James in considering the differing losses which would occur during the course of the hire term according to the natural depreciation of the value of the car. Notes the reasoning of the Court on: (1) contracts of hire compared with hire purchase agreements; (2) the comparative position of the parties and the freedom to contract elsewhere; and (3) the reasonable prediction of future losses.

Private purpose trusts: a reform proposal

Argues for the introduction of statutory reform to enable valid private purpose trusts to be created by those wishing to make testamentary gifts for non-charitable purposes, with no human beneficiary. Examines the rationale employed in cases where the validity of a private purpose trust has been upheld despite the absence of a human beneficiary. Considers the approaches adopted by five offshore jurisdictions when introducing purpose trust legislation. Identifies key features to be included in any new purpose trust legislation introduced in the UK.

Termination of tenancies for tenant default: Law Commission's draft Bill

Reviews key proposals of a draft Bill set out in Command Paper: The Law Commission: Termination of Tenancies for Tenant Default (Cm.6946), aimed at replacing the existing law on forfeiture of tenancies. Summarises the main elements of the proposed termination action by landlords, the events justifying such an action, the time limits for serving default notices, the revised range of court orders available and the considerations influencing which type of order to make. Examines the position of qualifying interest holders and the circumstances in which summary termination notices are prohibited.

Forfeiture relief

Looks at the common law forfeiture rule, preventing a person who has unlawfully killed another from profiting from the death, and the granting of relief under the Forfeiture Act 1982. Reviews case law on the forfeiture rule, its modification under s.2 in the interests of justice and the provision under s.3 that the rule does not preclude an application under the Inheritance (Provision for Family and Dependants) Act 1975. Reviews the Chancery Division ruling in Land v Land (Deceased), highlighting the ability for a claimant to choose whether to seek relief from forfeiture under s.2 of the 1982 Act or pursue a claim for reasonable financial provision from a deceased's estate under s.2 of the 1975 Act.

Return of deposits

Explores case law illustrating the circumstances in which the courts are likely to order the return of a deposit in the event of a buyer's default. Notes the unwillingness of the courts to apply the rule on penalties to deposits and discusses the court's discretion under the Law of Property Act 1925 s.49(2) to order repayment. Focuses on the Chancery Division ruling in Aribisala v St James Homes (Grosvenor Dock) Ltd giving guidance on the circumstances in which the discretion under s.49(2) should be exercised.

Returning to deposits...

Examines the Court of Appeal ruling in Midill (97PL) Ltd v Park Lane Estates Ltd on whether the court should exercise its discretion to return a deposit paid under a contract for the sale of a property where, despite the claimant having defaulted on its purchase, the owner obtained a higher price than would have been paid by the claimant when it subsequently sold the property to a third party. Considers the need for special or exceptional circumstances to be present to override the rule that deposits were to be forfeited upon the purchaser's default.

Confidentiality or disclosure?

Considers the discretion of the trustees to disclose the settlor's wishes to the beneficiaries of a family discretionary trust. Discusses the confidentiality principle relating to family discretionary trusts and whether a settlor's wish letter falls within the scope of that principle. Sets out the guidance of the court in Breakspear v Ackland for trustees faced with a request for disclosure from a beneficiary.

Insolvency: ordering a sale of the family home

Comments on the Chancery Division ruling in Nicholls v Lan on whether the interests of a bankrupt husband's creditors prevailed over those of the wife, despite her circumstances being exceptional within the meaning of the Insolvency Act 1986 s.335A on account of her suffering from chronic schizophrenia, where the wife was the joint owner of another property which could be realised to buy out the trustee in bankruptcy's half share in the equity of the matrimonial home.

A just claim?

Discusses the law relating to the payment of occupation rent to a co-owner by the party remaining in the property after a relationship breakdown both under the Trusts of Land and Appointment of Trustees Act 1996 and where the Act is not applicable. Considers, with reference to the Chancery Division decision in Re Barcham, whether a trustee in bankruptcy acting on behalf of the non-occupying person can claim an occupation rent under the court's equitable jurisdiction.

Showing interest

Comments on the Chancery Division judgment in Jones v Kernott on the beneficial interests of former cohabiting partners in their family home. Considers whether the partners must have intended to vary their shares when the man stopped paying the mortgage, bought a house in his own name and went to live there. Discusses whether the court could take into account what was considered fair between the partners based on the whole course of dealing, including non-payment of maintenance for children.

The legal pendulum swings back

Comments on the Court of Appeal judgment in Abou-Rahmah v Abacha on liability for dishonest assistance to a breach of trust. Discusses whether an objective standard should apply to determine whether the accessory acted dishonestly. Reviews case law, examining whether the combined test proposed in the House of Lords judgment in Twinsectra Ltd v Yardley is still good law.

Urgent review

Explains the rights of mortgagees to take possession of and sell property where mortgagors fall into arrears, considering the application of the provisions of the Administration of Justice Act 1970 allowing courts to adjourn or stay proceedings to allow borrowers to meet their obligations under the mortgage. Highlights the Chancery Division ruling in Horsham Properties Group Ltd v Clark, in which the property was sold without vacant possession and an action taken for possession of the property from the mortgagors as trespassers, which meant that the 1970 Act did not apply. Notes the concerns of the Council of Mortgage Lenders which may lead to a review of the law. [from Legal Journals Index]

Deal or no deal

Discusses the pre-action protocol for mortgage possession claims which came into effect on November 19, 2008, highlighting the situations in respect of which it is suggested the lender "considers" not starting proceedings and the lenders entitlement to be informed of progress on the sale of the property. Reviews the guidance on mortgages and arrears issued by the Council for Mortgage Lenders, aimed at assisting lenders in complying with the Financial Services Agency's Mortgage Conduct of Business Rules Pt 13. [From Legal Journals Index]

Horsham Properties Group Ltd v Clark: possession - mortgagee's right or discretionary remedy?

Comments on the Chancery Division decision in Horsham Properties Group Ltd v Clark on whether a mortgagee's exercise of its contractual right, on the mortgagor falling into arrears, to appoint receivers such that the property could be sold and possession obtained without triggering the court's discretionary powers pursuant to the Administration of Justice Act 1970 s.36 infringed the mortgagor's rights under the European Convention on Human Rights 1950 Protocol 1 art.1. Considers the implications of proposed reforms recasting the mortgagee's right to possession as a discretionary remedy. [From Legal Journals Index]

A clear direction

Comments on the House of Lords decision in Thorner v Curtis, also referred to as Thorner v Major, on whether an unpaid farm labourer could rely on assurances made by the farmer that he would inherit the farm, to establish proprietary estoppel when the farmer died intestate. Considers whether the assurances had been clear and whether the property to be inherited could be specifically identified. Notes the Lords' consideration of the possible existence of a constructive trust. [From Legal Journals Index]