Abstract
From time to time attempts have been made to introduce equitable doctrine into the corpus of English commercial law. For example judges have occasionally flirted with the concept of a ‘trust of a promise’, in an attempt to enable C to sue on a contract which A had made with B for his benefit. But the flirtation was shortlived. There was no easy answer to the artificial question, when did B hold his right to sue A on trust for C? 1 Moreover, to imply such a trust would generally be quite inconsistent with the commerical expectations of A and B since it would mean they could never vary or revoke the terms of the contract even though they might subsequently wish to do so.2
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References
See Glanville Williams, (1944–1945) 7 Modern Law Review 123.
Cf. the observations of Lord Denning M.R. in Beswick v. Beswick [1966] Ch. 638, 555.
[1895] 2 Q.B. 539.
At p. 545.
Nelson v. Larholt [1948] 1 K.B. 339.
Selangor United Rubber Estates Ltd. v. Cradock (No. 3) [1968] 1 W.L.R. 1555; Karak Rubber Co. Ltd. v. Burden (No. 2) [1972] 1 W.L.R. 602. 7. Companies Act 1948. s. 54.
Gray v. Johnston (1868) L.R. 3 H.L.1. Shields v. Bank of Ireland [1901] 1 I.R. 222, 232–233, per Porter M.R.
Carl-Zeiss Stiftung v. Herbert Smith & Co. [1969] 2 Ch. 276, 296, per Sachs L.J., 301, per Edmund Davies L.J., Belmont Finance Corp. Ltd. v. Williams Furniture Ltd. [1978] 3 W.L.R. 712, 728, per Buckley LJ.. 734. per Goff L.J.
Gray v. Johnston (1868) 3 H.L. 1.
Manchester Trust v. Furness [1895] 2 Q.B. 539, 545 ; ante p. 51.
London Joint Stock Bank v. Simmons [18921 A.C. 201.
Bank of England v. Fagan (1849) 7 Moo. P.C. 61, 72, cited in London Joint Stock Bank v. Simmons [1892] A.C. 201, 219, 221, per Lord Herschell.
s. 95 (1).
[1972] Ch. 446.
[1974] 1 W.L.R. 1648.
Barclays Bank Ltd. v. Quistclose Investment Co. [1970] A.C. 567.
s. 38 (1).
Cf. post pp. 54–55.
s. 38 (4).
The cases are discussed in Williams on Bankruptcy (18th ed.), pp. 329–330. Moreover the ‘reputed ownership’ clause has no application in the winding up of companies.
Cf. Barclays Bank Ltd. v. Quistclose Investment Co. [1970] A.C. 567.
[1975] 1 W.L.R. 279.
At p. 280.
At pp. 281–282.
Cf. Coptic v. Bailey [1972] Ch. 446, criticised ante p. 53.
The full title is: Aluminium Industrie Vaasen B. V. v. Romalpa Aluminium Ltd. [1976] 1 W.L.R. 676.
The clause reads in Dutch as follows: De eigendom van het door A.I.V. te leveren materiaal gaat eerst op koper over zodra deze al hetgeen hij uit welken hoofde ook aan A.I.V. verschuldigd is, aan A.I.V. heeft voldaan. Tot aan het tijdstip van betaling is koper gehouden dit materiaal op te slaan op een wijze die het als eigendom van A.I.V. kenbaar doet zijn, indien A.I.V. zulks verlangt. A.I.V. en koper komen overeen dat, indien koper van het materiaal (een) nieuw(e) voorwerp(en) vormt of doet vormen, dit materiaal met (een) ander(e) voorwerp(en) vermengt of indien dit materiaal op enigerlei andere wijze bestanddeel wordt van (een) ander(e) voorwerp(en) A.I.V. de eigendom van dit (deze) nieuwe voorwerp(en) zal verkrijgen tot zekerheid van de volledige betaling van het door koper aan A.I.V. verschuldigde. A.I.V. en koper komen daartoe reeds nu overeen, dat de eigendom van bedoeld(e), al dan niet voltooid(e) voorwerp(en) aan A.I.V. zal/zullen worden overgedragen en dat deze eigendomsoverdracht geacht zal worden plaats te hebben door en op het tijdstip van de enkele handeling of gebeuren waardoor het materiaal wordt omgevormd tot (een) nieuw(e) voorwerp(en), dan wel vermengd wordt met of bestanddeel wordt van (een) ander(e) voorwerp(en). Tot aan het tijdstip van de volledige betaling van het door koper aan A.I.V. verschuldigde zal koper de (het) desbetreffende voorwerp(en) houden voor A.I.V. in diens hoedanigheid van fiduciair eigenaar en desverlangd dit (deze) voorwerp(en), als zodanig kenbaar, opslaan. Koper zal niettemin gerechtigd zijn deze voorwerpen in het kader van zijn normale bedrijfsuitoefening aan derden te verkopen en te leveren, met dien verstande dat — indien A.I.V. zulks wenst — koper, zolang hij niet volledig aan zijn betalingsverplichtingen tegenover A.I.V. heeft voldaan, de uit deze verkopen aan koper tegenover zijn afnemers toekomende vorderingen aan A.I.V. zal overdragen.
I am informed by Judge Willems that this was an unfortunate assumption. Fiduciair eigenaar do not mean that the manufacturer is a trustee. The ‘words go back to the Roman law concept of fiducia cum creditore.’
Ante n. 29.
Companies Act 1948, s. 95 (1).
[1976] 1. W.L.R. at pp. 689–670, per Roskill L.J.
This appears from the fuller report in [19761 2 All E.R. 55 2, 567.
The Times’, November 15 1978.
(1880) 13 Ch. D. 696, on which see Hanbury and Maudsley,Modern Equity, p. 565 et seq.
35a. The judgments of the Court are now reported [1979] 3 W.L.R. 672. .
[1979] 3 W.L.R. 629.
(1848) 2 H.L. C. 28.
[1931] 2 K.B. 515.
See, generally, Hanbury and Maudsley, Modern Equity, chapter 2.
Lumley v. Wagner (1852) 1 De G.M. & G. 604.
SkyPetroleum Ltd. v. V.I.P. Petroleum Ltd. [1974] 1 All E.R. 954.
De Mattos v. Gibson (1858) 4 De G. & J. 276, 282, per Knight-Bruce L.J.
Taddy & Co. v. Sterious & Co. [1904] 1 Ch. 354; McGruther v. Pitcher [1904J 2 Ch. 306.
Lord Strathcona Steamship Co. Ltd v. Dominion Coal Co. [1926] A.C. 108. This was in fact a decision of the Judicial Committee of the Privy Council.
Ante n. 42.
Port Line Ltd v. Ben Line Steamers Ltd [1958] 2 Q.B. 146, 168, per Diplock J.
[1979] 2 All E.R. 853.
[1979] 2 All E.R. 853, 874, per Browne-Wilkinson J.; italics supplied
Ante n. 48.
Manchester Ship Canal Co. v. Manchester Racecourse Co. [1901] 2 Ch. 37.
Dunlop Pneumatic Tyre Co. Ltd. v. Selfridge & Co. Ltd [1915] A.C. 847.
On undisclosed principals, see B.S. Markesinis and R.J.C. Munday, An Outline of the Law of Agency. pu. 118–119.
Ante n. 51.
[1915] A.C. 847, 855.
The authorities are discussed by Scrutton J. in L.C.C. v. Allan [1914] 3 K.B 642
(1890) 45 Ch. D. 1,14. .
Nippon Yusen Kaisha v. Karageorgis [1975] 1 W.L.R. 1093; Mareva Compania Naviera S.A. v. International Bulk Carriers [1975] 2 Lloyds Rep 509; MBPXL Corpn. v. International Banking Corpn. [1975] Court of Appeal Transcript 411; Rasu Maritime S.A. v. Perusahaan Pertambangan Minjak Dan Gas Bumi Negara (Pertamina) and Government of Indonesia (as interveners) [1978] Q.B. 644; Cretanor Maritime Co. Ltd v. Irish Management Ltd [1978] 1 W.L.R. 966; The Assios [1979] 1 Lloyds Rep 331; Third Chandris Shipping Corpn. v. Unimarine S.A. [1979] 2 All E.R. 972.
The Siskina [1977] 3 W. L. R. 818.
Mareva Compania Naviera S.A. v. International Bulk Carriers [1975] 2 Lloyds Rep 509.
Woodthorpe Brandon, A. Treatise upon the Customary Law of Foreign Attachment (London, 1861), p.7.
Pennoyer v. Ness, 95 U.S. 714, 723–724, per Justice Field (1877). In France the procedure is known as saisie conservatoire.
See text accompanying notes 63 and 64 post.
[1975] 1 W.L.R. 1093.
At pp. 1094–1095.
[1975] 2 Lloyds Rep 509.
Unreported; [1975] Court of Appeal Transcript 411.
Cited in Third Chandris Shipping Corpn. v. Unimarine S.A. [1979] 2 All E.R. 972, 975, per Mustill J.
[1978] Q.B. 644.
Cited in [1978] Q.B. 644, 660–661.
Third Chandris Shipping Corpn. v. Unimarine S.A. [1979] 2 All E.R. 972, 976, per Mustill J.
See note 70.
[1977] 3 W.L.R. 818.
[1978] 1 W.L.R. 966.
[1979] 2 All E.R. 972.
See text accompanying footnote 69.
The Assios [19 79] 1 Lloyds Rep 331.
Third Chandris Shipping Corpn. v. Unimarine S A. [1979] 2 All E. R. 972, 984, per Lord Denning M.R., citing The Assios [1979] 1 Lloyds Rep 331.
Ante n. 77.
MPBXL Corpn. v. Intercontinental Banking Corpn. [1975] Court of Appeal Transcript 411.
See Cretanor Maritime Co. Ltd. v. Irish Marine Management Ltd [1978] 1 W.L.R. 966, 972.
Ante n. 77.
Ante n. 77
Cretanor Maritime Co. Ltd v. Irish Management Ltd. [1978] 1 W.L.R. 966.
Third Chandris Shipping Corpn. v. Unimarine S.A. [1979] 2 All E.R. 972, 985, per Lord Denning M.R., 988, per Lawton and Cumming-Bruce L.JJ.
[1979] 1 All E.R. 398. These observations were obiter.
See text accompanying footnote 67.
[1978] Q.B. 644. 661.
[1975] A.C. 396.
[1978] Q.B. 644, 664. See also Cretanor Maritime Co. Ltd. v. Irish Management Ltd. [1978] 1 W.L.R. 966, 975, per Buckley L.J.
[1979] 2 All E.R. 972.
[1975] A.C. 396.
[1979] 2 All E.R. 972. 977.
[1979] 2 All E.R. 972, 985, 987, 988.
[1979] 2 All E.R. 972, 987.
[1979] 2 All E.R. 972, 987.
[19791 2 All E.R. 972. 985. 987–8.
[1977] 3 W.L.R. 818.
Third Chandris Shipping Corpn. v. Unimarine S.A. [1979] 2 All E.R. 972, 983, per Lord Denning M.R.
[1978] 1 W.L.R. 966. Cf. now Iraqi Ministry of Defence v. Arcepey Shipping Co. S.A. [1980] 1 All E.R. 480.
[1978] 1 W.L.R. 966, 974, per Buckley L.J.
Ante n. 100; as did the old procedure of foreign attachment.
See text accompanying footnote 69.
[1978] 3 W.L.R. 818, 830.
There are hints in Pertamina [1978] Q.B. 644.
[1979] 2 All E.R. 972, 983–984.
March 16, 1979. It is now reported in: [1980] 1 All E.R. 205. Contrast The Agrabele [1979] 2 Lloyd’s Rep 112.
(1890) 45 Ch. D. 1, 14; Ante p. 61.
See Sir Michael Kerr’s remarks in (1978) 41 M.L.R. 1, 14–15.
[1979] 2 All E.R. 972, 978.
[19 78] 1 W. L. R. 966.
[1978] 1 W.L.R. 966, 974, per Buckley L.J.
[1978] Q.B. 644, 662.
[1978] 1 W.L.R. 966, 974–975.
[1978] 3 W.L.R. 818, 830.
The Assios [1970] 1 Lloyds Rep 331, 334. See also Third ChandrisShippingCorpn. v. Unimarine S.A. 11979].
[1979] 2 All E.R. 972, 983.
See now, Monleachi v. Shinco (U.K.) Ltd [19791. W.L.R. 1180.
This was done in Rena K [1979] 1 All E.R. 397.
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Jones, G. (1980). The Infiltration of Equity into English Commercial Law. In: Markesinis, B.S., Willems, J.H.M. (eds) The Cambridge-Tilburg Law Lectures. Springer, Dordrecht. https://doi.org/10.1007/978-94-017-4414-0_2
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