Condition subsequent Definition

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GLOSSARY

What does Condition subsequent mean?

A condition which destroys or divests the right upon the happening of an event.

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Perpetuities and accumulations

The rules relating to perpetuities and accumulations stem from the common law and the provisions in the Perpetuities and Accumulations Act 1964 (PAA 1964). These increasingly archaic rules were becoming troublesome and in 1989 the Law Commission started consultations on altering them. This culminated in a paper in 1993 identifying defects in the system and a final Report in 1998 with a draft bill which resulted in the Perpetuities and Accumulations Act 2009 (PAA 2009).PAA 2009 came into force on 6 April 2010. It seeks to modify and simplify the law by making changes both to the rule against perpetuities (also known as the rule against remoteness of vesting) and the rule against excessive accumulations. Practitioners should still have regard to the old rules that continue to apply in certain cases.The rule against perpetuities exists to prevent property from being tied up indefinitely. There are three elements:•the rule against remoteness of vesting, which dictates that a future trust interest in property must be certain of vesting in the beneficiary within the perpetuity period•the rule against inalienability,...

Glossary of Scottish Private Client words and expressions

Glossary of Scottish Private Client words and expressions This is a glossary of common words and expressions used in Scottish Private Client law with the nearest England and Wales equivalent (where relevant) and links to useful websites. Ab intestato Meaning Nearest English equivalent From a person dying intestate; description of property acquired according to the rules of intestate succession. None Action of specific implement Meaning Nearest English equivalent An action which requires the court to grant an order requiring a party to perform a specific act. In Scotland, there is no distinction between equitable and legal remedies as there is in England and Wales. Specific performance (an equitable remedy available for breach of contract that may be granted in addition to or instead of damages) Advance notice Meaning Nearest English equivalent A notice (registered in the relevant property register) to protect the grantee of a deed intended to be registered in the Land Register of Scotland. The 35-day protected period starts on the day...

Discover our 7 Practice Notes on Condition subsequent

What perpetuity period applies to a lump sum death in service benefit paid under a group life master trust to a discretionary trust set up by a beneficiary of the master trust during the beneficiary’s lifetime?

What perpetuity period applies to a lump sum death in service benefit paid under a group life master trust to a discretionary trust set up by a beneficiary of the master trust during the beneficiary’s lifetime? It is assumed that the group life master trust is not a part of a pension scheme. If the creation of the master trust and discretionary trust both took place on or after 6 April 2010, the date on which the Perpetuities and Accumulations Act 2009 (PAA 2009) came into force, PAA 2009 will determine the perpetuity period applicable to the death benefit while it is held within the discretionary trust. The key provisions of PAA 2009 are sections 1 and 6, which are reproduced below: (1) Application of the rule ‘(1) The rule against perpetuities applies (and applies only) as provided by this section. (2) If an instrument limits property in trust so as to create successive estates or interests the rule applies to each of the estates or interests. (3) If an...

Our client entered into an agreement, under which a contingent right exists for a purchasing company to purchase various plots of land from our client over a number of years. The right was drafted to ensure that it was exclusive to the purchasing company, allowing no right of assignment. The purchasing company has since been dissolved and we understand that its assets have passed to the Crown bona vacantia. Is the Treasury Solicitor now able to enforce the rights under the contract to purchase land from our client? There is no right to terminate the contract upon dissolution.

Our client entered into an agreement, under which a contingent right exists for a purchasing company to purchase various plots of land from our client over a number of years. The right was drafted to ensure that it was exclusive to the purchasing company, allowing no right of assignment. The purchasing company has since been dissolved and we understand that its assets have passed to the Crown bona vacantia. Is the Treasury Solicitor now able to enforce the rights under the contract to purchase land from our client? There is no right to terminate the contract upon dissolution. We have assumed that the purchasing company in question was not subject to any insolvency process immediately prior to its dissolution. It is also assumed that the agreement entered into is in nature similar to a conditional contract or option exercisable upon the happening of specific events. The dissolved company has a contingent personal right to purchase property under the agreement. A conditional contract is an agreement that...

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