TRUSTThe relationship when an item or items are held by one party for the benefit of another is called a Trust. A Trust is created by a settlor(owner), who transfers some or all of their estate to a trustee. The trustee holds or managers that estate for the trust's Beneficiaries When placing items of an estate under Trust, the settlor hands over part or all of their associated rights to the items under the control of the trustee. This separates the property's legal ownership and control from the equitable ownership and benefits. This may be done for financial reasons or to control the item and its benefits if the settlor is absent, incapacitated, dead or by imposed legislative regulations over the Settlor.nnWhilst the trustee is granted legal title to the item under trust, they are obligated to act for the good of the beneficiaries. The trustee can be an individual, a company, or a public body. The trustee may be compensated for their management of the trust; otherwise they must turn over all profits from the trust properties to the Beneficiaries. A Trust is governed by the terms under which it was created. Under a common law system this requires a contractual agreement.
CONTRACTAn agreement with specific terms between two or more persons or entities in which there is a promise to do something in return for a valuable benefit known as consideration. Since the law of contracts is at the heart of most business dealings, it is one of the most significant areas of legal concern and can involve variations on circumstances and complexities. The existence of a contract requires finding the following factual elements:
- An offer;
- An acceptance of that offer which results in a meeting of the mind
- A promise to perform
- A valuable consideration (which can be a promise or payment in some form)
- A time or event when performance must be made (meet commitments)
- Terms and conditions for performance, including fulfilling promises performance
CONSIDERATIONConsideration is an essential element for the formation of a contract. It may consist of a promise to perform a desired act or a promise to refrain from doing an act that one is legally entitled to do.In a bilateral contract-an agreement by which both parties exchange mutual promises-each promise is regarded as sufficient consideration for the other. In a unilateral contract, an agreement by which one party makes a promise in exchange for the other's performance, the performance is consideration for the promise, while the promise is consideration for the performance..
Consideration must have a value that can be objectively determined. A promise, for example, to make a gift or a promise of love or affection is not enforceable because of the subjective nature of the promise.
Traditionally, courts have distinguished between unilateral and bilateral contracts by determining whether one or both parties provided consideration and at what point they provided the consideration. Bilateral contracts were said to bind both parties the minute the parties exchanged promises, as each promise was deemed sufficient consideration in itself. Unilateral contracts were said to bind only the promisor and did not bind the promisee unless the promisee accepted by performing the obligations specified in the promisor's offer. Until the promisee performed, he or she had provided no consideration under the law.
NOTICEA legal notification or warning that is delivered in a written format or through a formal announcement. An individual or party is considered liable if the party;
- has knowledge of the notice
- received the notice
- knows it through experience,
- has knowledge with regards to an associate fact
- could have gained knowledge had an enquiry been undertaken