Which of the Following Is Not a Situation Where the Trustee

question 7

Multiple Choice

Which of the following is not a situation where the trustee may have a defence to an action for breach of trust? (Think carefully) .

• A) Bela wrongly committed a breach of trust six and a half years ago. The beneficiaries Chloe and Emma found out about the breach three months after it was committed.
• B) Melanie, in breach of trust, made wrongful investments. She later told the beneficiaries, Emily and Getrude, about this, and they condoned the breach. Emily said she would consent on behalf of Lionel, her sixteen year old son, who was the only other beneficiary under the trust.
• C) Chris wrongly purchased trust property seven years ago, in breach of the self-dealing rule. The beneficiaries, Edward and Jack knew about the breach at the time it was committed. Chris has spent over £85,000 improving the property since he purchased it.
• D) Charlie advanced money to Anne to help her pay off her debts, rather than the stipulated purpose under the trust. Jane and Brian, the only other beneficiaries of the trust, both consented to the advancement being made.

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Definitions:

Prediction Interval

An estimated range of values within which a future observation is expected to fall, with a certain probability.

Independent Variable

A variable in an experiment or model that is manipulated or changed to assess its effects on a dependent variable.

Probability Distribution

A mathematical function that describes the likelihood of obtaining the possible values that a random variable can assume.

Uncertainty

The state of having limited knowledge where it is impossible to exactly describe an existing state or future outcome.