Constitution of Trusts: An Analysis of Re Pryce

Abstract

The case of Re Pryce] has been the subject of much academic debate and criticism over the years. The reason being that the decision is founded on neither principle nor authority. Particularly, the decision failed to recognise that the benefit of a covenant could form the basis of a valid trust. The problem is compounded by the fact that the reasoning has formed the basis for a number of subsequent decisions. However, whilst the rationale of the case was erroneous, in light of recent High Court authority, it is arguable that the result was justified and correct in the circumstances.